UBS and Credit Suisse at Odds on AI Investment Theme: Former Bullish on Cloud Service Provider Rotation, Latter Betting on AI Infrastructure Value Reassessment

BlockBeats News, July 6th. As the internal rotation within the U.S. stock market's AI sector intensifies, Morgan Stanley and UBS have given different assessments of the next stage of AI investment trends. Morgan Stanley believes that funds are shifting from the previously surging semiconductor sector to mega-scale cloud service providers such as Microsoft, Amazon, Meta, and others. They argue that the AI market is not ending but entering a sector rotation phase.

UBS, on the other hand, is more bullish on the long-term value creation ability of AI infrastructure. Their Holt team expects the profitability of storage chip companies like Samsung Electronics, SK Hynix, Micron, and others to continue to improve. They project that the economic profit of the AI infrastructure sector will increase from around $200 billion in 2023 to $14 trillion in 2027, a growth of about 600%. In contrast, the projected economic profit of large cloud service providers during the same period is expected to increase to only around $400 billion. UBS believes that the storage chip industry is transitioning from a traditional cyclical industry to one of the most important value creators in the AI industry chain.