For full-year 2024, CIO expects global tech earnings to pick up strongly. (UBS)

The AI leader says it will open an app store next month with customized assistants that can perform common tasks, like tutoring on math or booking airline flights. This follows news that Elon Musk's startup xAI is close to releasing a competing chat AI model called "Grok." Elsewhere, Ant Group has received Chinese government approval to release products that use its "Bailing" AI to the public. On the hardware side, Japan’s Canon has detailed plans to undercut ASML Holding’s lithography machines with a new “nanoimprint” technology it says will allow smaller semiconductor makers to produce advanced chips.


Our view: The pace of innovation in AI remains exceptional, with the utility and ambition of new AI enterprise and consumer services improving rapidly. Recent US tech earnings pointed to continued AI capex into 2024, which we see supporting a strong earnings recovery cycle in the global semiconductor segment. For full-year 2024, we expect global tech earnings to pick up strongly, growing by 16%, and view the recent correction as an opportunity to build exposure. Broadly speaking, we continue to like the software industry due to its solid growth trends and defensiveness.


Read the full report There's more to the rally than seasonality 7 November 2023.


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