{"id":109635,"date":"2026-07-29T18:22:11","date_gmt":"2026-07-29T18:22:11","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/109635\/"},"modified":"2026-07-29T18:22:11","modified_gmt":"2026-07-29T18:22:11","slug":"ubs-ceo-says-the-ongoing-ai-pullback-is-healthy-but-another-risk-could-be-the-next-big-threat-for-investors","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/109635\/","title":{"rendered":"UBS CEO Says The Ongoing AI Pullback Is Healthy. But Another Risk Could Be the Next Big Threat for Investors"},"content":{"rendered":"

UBS Chief Executive Sergio Ermotti believes the recent cooling in artificial intelligence<\/a>-related stocks is not a reason for investors to panic, but geopolitical uncertainty could be, even as the Swiss banking giant posted stronger-than-expected second-quarter results and unveiled a new multibillion-dollar share buyback program.<\/p>\n

UBS on Wednesday reported<\/a> net profit attributable to shareholders of $2.8 billion for the second quarter, matching analyst expectations compiled by LSEG. Pre-tax profit climbed 64% from a year earlier to $3.6 billion, reflecting broad-based strength across the bank’s investment banking, wealth management and capital markets businesses. Speaking to CNBC’s Squawk Box Europe<\/a>, Ermotti said UBS continues to see strong client activity despite an uncertain macroeconomic backdrop.<\/p>\n

He described the firm’s investment banking pipeline as “very good,” highlighting healthy momentum in mergers and acquisitions, equity markets, debt capital markets and leveraged finance. He also pointed to a robust market for initial public offerings, noting UBS played a role in SpaceX<\/a>‘s blockbuster stock market debut<\/a>.<\/p>\n

The bank also announced<\/a> a new $3 billion share repurchase program, beginning with a $1 billion buyback over the next three months, a move that helped lift UBS shares roughly 2.5% in early trading.<\/p>\n

While investors remain focused on the explosive growth of artificial intelligence companies, Ermotti suggested recent weakness in the sector represents a normal market adjustment rather than the beginning of a broader collapse. “Clearly the ongoing volatility we see coming from the geopolitical front may create some kind of temporary headwinds,” Ermotti told CNBC.<\/p>\n

“But the momentum is good. We are well-positioned to capture the benefits of that.” His comments come after months of extraordinary gains in AI-related companies fueled by investor enthusiasm for data centers, semiconductor manufacturers and cloud infrastructure providers. That rapid rally also led to concerns about lofty valuations and heavy concentration in a handful of technology stocks.<\/p>\n

According to Ermotti, some moderation was inevitable. “Given the pace and scope of the increasing market caps and concentration over the last three-to-four months, a correction was to be expected,” he said.<\/p>\n

Rather than viewing the pullback as a warning sign, the UBS chief said it represents a healthier environment for long-term investors. “It’s only healthy to see it. We advise clients in that context always to really diversify,” Ermotti said.<\/p>\n

Ermotti stressed that AI’s influence will extend well beyond today’s market leaders. He said artificial intelligence and the infrastructure supporting it will remain a “big factor” for financial markets, but the technology’s economic benefits are expected to spread across many industries rather than remaining concentrated in chipmakers and mega-cap technology firms. “This is a huge opportunity that we can give to our clients to diversify and invest for the future,” he said.<\/p>\n","protected":false},"excerpt":{"rendered":"UBS Chief Executive Sergio Ermotti believes the recent cooling in artificial intelligence-related stocks is not a reason for…\n","protected":false},"author":2,"featured_media":109636,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[2252,11670,2696,5032,1549,176,223,4140],"class_list":["post-109635","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-ai","tag-bank","tag-market","tag-report","tag-sergio-ermotti","tag-stocks","tag-ubs","tag-war"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/117004661188151607","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/109635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=109635"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/109635\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/109636"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=109635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=109635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=109635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}