UBS Group's Asia-Pacific investment director's office released a report stating that the value of Artificial intelligence (AI) created is estimated to reach 1.16 trillion USD in 2027. The report analyzes different potential opportunities by composing a value chain of investable AI domains.

The report suggests that investors should hold enough positions. Despite the rapid growth in the industry, investors may still have insufficient overall holdings. Due to the scale of some leading AI companies, investors may need to consider weightings from a national stock market perspective rather than individual stocks.

The report indicated that UBS is bullish about semiconductor companies that invest in AI infrastructure such as driving data centers and edge computing. They believe that the profitability of the AI-enabled field has high visibility, and it has a powerful competitive advantage, a reinvestment track, and a reasonable valuation, which is currently an attractive option. UBS is optimistic about semiconductor firms driving investments in AI infrastructure, such as data centers and edge computing.

In addition, large-scale enterprises are the core of the AI theme. So far, the AI wave is still a situation where the strong are getting stronger. The report believes that this is a characteristic of the new investment pattern of AI, not a disadvantage. The bank expects the AI market to be dominated by vertically integrated 'foundries' and giant companies in a single domain of the value chain. Therefore, in addition to semiconductors, they also have a positive outlook on leading enterprises with monopolies in fields such as chips, cloud computing, and generative AI models and applications.

The report also noted that in addition to the United States, mainland technology giants are also investing heavily in AI. It is expected that the mainland will eventually develop an AI ecosystem different from other regions, which will bring significant cash potential.