UBS Strategist Sees 2027 as Potential Turning Point for AI Returns

UBS Chief European Equity Strategist and Head of Derivatives Gerry Fowler sees 2027 as a possible turning point for AI spending, as data-center deliveries could unlock backlogs and help revenue catch up with capital spending. Fowler said some hyperscalers trade at valuation multiples below 20 times while growing revenue 10% to 20% a year, a combination he views as evidence of pessimistic market expectations. He said investors remain willing to buy AI-related assets. Cash has moved toward memory-chip makers, Fowler said, and those companies are beginning to return cash to investors.

Source: TokenPost