(UBS)
The company expects the figure to roughly double to USD 230bn in fiscal 2028, while third-quarter AI-chip revenue more than tripled to USD 16.7bn. The update followed strong results from NVIDIA the previous week and helped technology shares start the week on a firmer footing. The tech-heavy Kospi index was up 4.6% on Monday.
Attention now turns to Oracle's results on Thursday. As a major provider of cloud computing capacity used for AI workloads, the company offers a useful read on demand for AI infrastructure. In its prior quarter, Oracle reported that cloud infrastructure revenue rose 93% year over year. Without taking a view on individual securities, investors will look to the release for evidence that cloud growth remains strong and that the scale, financing, and economics of the data center buildout continue to support confidence.
Our base case of robust AI investment, broader earnings growth, and resilient economic activity supports further equity market gains. Global AI-related capital expenditure is expected to reach around USD 900bn in 2026 and about USD 1.2tr in 2027, with the opportunity extending beyond the largest technology companies into semiconductors and hardware, software, power infrastructure, utilities, and industrials. However, increasing competition and uncertainty over which companies will ultimately capture the returns from this investment reinforce the importance of selectivity and diversification. We think investors should retain exposure to the principal drivers of the AI cycle while broadening equity allocations and adding exposure to the power, resources, and infrastructure required to support the buildout. Capital preservation strategies can also help investors remain invested where concentration or drawdown risk is elevated.
Original report – Weekly Global:What to watch in the week ahead, 8 September 2026.
