. (UBS)
While the comprehensive impact on these industries and individual names remains to be seen, we view it as a validation of AI’s monetization potential. The latest advances also underscore the transformative nature of AI, which makes it a critical component of an investor’s portfolio.
In our view, focusing solely on the US information technology sector is unlikely to fully capture the direct beneficiaries of AI. With meaningful value creation also occurring elsewhere, we recommend diversification across sectors and geographies.
AI opportunities in the US span multiple sectors. In the US, only a portion of investable AI value creation resides in the IT sector; the remainder is distributed across communication services, consumer discretionary, financials, and industrials, in our view. Companies in these sectors are embedding AI in ways that drive tangible business outcomes. We believe focusing only on the US IT sector risks missing pockets of value creation and may introduce unintended concentration and factor tilts.
Asia and Europe stand to benefit from an ecosystem that leverages diverse expertise and infrastructure. Outside the US, we see direct beneficiaries across Asia, the cornerstone of a globally integrated AI value chain. Taiwan and South Korea lead in chip and memory manufacturing, and recent earnings and management comments continue to point to strong and growing demand. Japan, meanwhile, offers opportunities both in the supply chain and in robotics and automation. We also see value in European companies that command leadership in the semiconductor and payment sectors.
China holds a prominent position in the global AI landscape. China’s rapid pace of innovation has secured the country a strong foothold in global AI, and we see appealing opportunities amid Beijing’s explicit support for homegrown AI models and chipmaking advancement. Indeed, we see risks that outcomes surpass consensus estimates of China’s AI capex, while leading internet companies have demonstrated their ability to integrate AI into profitable business models. This combination of capex acceleration and robust monetization should act as a powerful driver for China’s AI beneficiaries, in our view.
So, with AI acting both as a driver and a detractor of performance, investors should hold a diversified exposure as they dynamically evaluate the AI landscape. We also believe companies that actively use AI to enhance operations and evolve their business models should benefit, especially those in the financials and health care sectors.
Original report – Capturing the AI opportunity in a diversified way, 12 February 2026.
