©Reuters. UBS’s Marcelli: Investors should diversify tech exposure
UBS analysts said Monday that investors should consider diversified technology exposure, with one region potentially highlighted.
The bank noted that U.S. technology stocks started March strong, helping push the S&P 500 index to an all-time high for the 15th time this year on Friday, amid optimism about the prospects for the commercialization of artificial intelligence (TO THE).
“With generative AI poised to become the growth theme of the decade and large-cap U.S. technology companies leading the revolution, we continue to believe that U.S. technology stocks should make up a substantial portion of investors’ equity allocations,” they analysts wrote. “This means building a strategic U.S. large-cap holding for those who are underinvested in.”
However, for investors with too much exposure, UBS said they should consider diversification, while also considering emerging trends in the sector, which should be considered to broaden technology exposure.
“We believe Asia is an attractive destination for technology diversification and see further potential in customs chip and AI foundries,” the bank said.