{"id":60356,"date":"2026-05-05T13:54:34","date_gmt":"2026-05-05T13:54:34","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/60356\/"},"modified":"2026-05-05T13:54:34","modified_gmt":"2026-05-05T13:54:34","slug":"big-tech-earnings-validate-ai-investment-boom-says-ubs-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/60356\/","title":{"rendered":"Big tech earnings validate AI investment boom, says UBS"},"content":{"rendered":"<p>    <img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/05\/1777989274_211_1d641b09885e327c2367c2d33a9f7517.jpeg\" alt=\"Big tech earnings validate AI investment boom, says UBS\" loading=\"eager\" height=\"445\" width=\"960\" class=\"yf-lglytj  loaded\"\/> Big tech earnings validate AI investment boom, says UBS Proactive uses images sourced from Shutterstock      <\/p>\n<p class=\"yf-1fy9kyt\">Strong first-quarter results from five of the so-called Magnificent 7 technology giants have reinforced the bull case for artificial intelligence investment, according to UBS, which is maintaining its attractive rating on US equities and a year-end S&amp;P 500 target of 7,500.<\/p>\n<p class=\"yf-1fy9kyt\">Analysts at UBS Global Wealth Management&#8217;s chief investment office said AI-related demand remains strong, pointing to a significant acceleration in cloud revenue growth and a sharp increase in order backlogs as evidence that spending on data centre infrastructure is paying off.<\/p>\n<p class=\"yf-1fy9kyt\"><a href=\"https:\/\/finance.yahoo.com\/quote\/GOOG\" data-ylk=\"slk:Alphabet Inc (NASDAQ:GOOG);elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Alphabet Inc (NASDAQ&quot;}\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">Alphabet Inc (NASDAQ:GOOG)<\/a>\u00a0indicated that its capital expenditure growth would remain significant into 2027, while electric utility companies reported accelerating discussions with major cloud providers over long-term power supply contracts.<\/p>\n<p class=\"yf-1fy9kyt\">With 70% of S&amp;P 500 companies by market capitalisation having reported, nearly 80% are beating both sales and earnings per share estimates, ahead of the long-run average.<\/p>\n<p class=\"yf-1fy9kyt\">Earnings growth is coming in above UBS&#8217;s own 17% forecast for the quarter, and second-quarter earnings estimates are being revised higher rather than lower, which the bank described as an encouraging departure from the normal seasonal pattern.<\/p>\n<p class=\"yf-1fy9kyt\">The S&amp;P 500 has hit a record high after surging more than 10% in April, but UBS said elevated valuations of around 21 times forward earnings were not in themselves a reason for caution, arguing that the 12-month outlook for corporate profits remains the more important variable.<\/p>\n<p class=\"yf-1fy9kyt\">The bank flagged a resumption of energy flows from the Middle East as a key near-term condition for further gains.<\/p>\n","protected":false},"excerpt":{"rendered":"Big tech earnings validate AI investment boom, says UBS Proactive uses images sourced from Shutterstock Strong first-quarter results&hellip;\n","protected":false},"author":2,"featured_media":60357,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[129],"tags":[225,1079,250,2354,223,19678,1966],"class_list":{"0":"post-60356","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ubs","8":"tag-artificial-intelligence","9":"tag-earnings-per-share","10":"tag-investment","11":"tag-revenue-growth","12":"tag-ubs","13":"tag-ubs-global-wealth-management","14":"tag-ubs-proactive"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116522311202430616","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/60356","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=60356"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/60356\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/60357"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=60356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=60356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=60356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}