Synthetic intelligence (AI) momentum holds strong regardless of China’s DeepSeek rattling investor sentiment, UBS World Wealth Administration head of asset allocation Jason Draho says. The strategist stays optimistic concerning the tech sector on AI positive aspects, he tells Brad Smith and Madison Mills in Morning Transient.
“Clearly, DeepSeek kind of disrupted a number of the thesis general for the tech story, however as we type of step again and take a look at, [the developments were] in step with enchancment, decrease prices. That wasn’t in the end perhaps the larger sport changer,” he says.
He highlights that Massive Tech firms continued their huge spending on AI, suggesting, “the thesis remains to be very a lot in play.”
“Each time there’s been a little bit of a hiccup, the tech shares, these type of mega-cap names are those that traders type of return to,” Draho says, including, I believe that may proceed to play out until there’s an actual disruption within the earnings story and to date, we count on some moderation of earnings development from extremely excessive ranges to nonetheless actually good ranges. So, I believe the thesis hasn’t modified.”
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This submit was written by Naomi Buchanan.
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