UBS Lists 40 Buy-Rated Stocks as AI Trade Slides Up to 20%
Updated
Updated · CNBC · Jul 16
UBS Lists 40 Buy-Rated Stocks as AI Trade Slides Up to 20%
1 articles · Updated · CNBC · Jul 16
Summary
UBS this week highlighted 40 buy-rated stocks as alternatives to crowded AI trades, arguing many defensive, high-quality names have been unfairly de-rated despite resilient fundamentals.
AI-linked assets have weakened sharply over the past month: the Global X data-center ETF is down more than 10%, the PHLX Semiconductor index about 12%, and the Roundhill memory ETF nearly 20%.
The list leans toward traditional downturn shelters, including McDonald's, PepsiCo, Charles Schwab and S&P Global, while also adding software names such as Thomson Reuters and SS&C Technologies.
Investors are also extending that defensive shift beyond equities, with Westwood Capital's Dan Alpert saying cheap downside protection and 2-year Treasuries look attractive if rates stay flat or are cut.