A Big Leap Expected in Artificial Intelligence Investments

UBS reported that global artificial intelligence investment spending will exceed $500 billion by 2026. The bank notes that "solid fundamentals" and increasing demand for computing power are driving this growth.

In light of these developments, UBS has revised its global artificial intelligence investment spending forecast for 2025 to $423 billion and for 2026 to $571 billion. These figures are above their previously stated forecasts of $375 billion and $500 billion.

By 2030, total spending is expected to reach $1.3 trillion, indicating a 25% annual compound growth rate over the next five years.

UBS cites recently signed large agreements as evidence of this growing momentum. The bank stated, "OpenAI and Amazon signed a seven-year agreement worth $38 billion on Monday," and added that "Microsoft announced it will acquire $9.7 billion worth of computing capacity from Australian data center operator IREN."

According to UBS, these transactions highlight the rising demand for computing power driven by increasingly complex artificial intelligence applications.

The bank noted that computing demand has been "above expectations" and that monetization is "accelerating," reporting a 130% increase in the consumption of artificial intelligence tokens by Google's Gemini over the past 18 months, while Meta's computing needs have "increased significantly and surpassed expectations."

Despite rising costs, UBS states that major American technology companies remain financially strong, noting that spending intensity has nearly doubled over the past five years to 20.8% and is expected to reach 27% by 2030.

In conclusion, UBS emphasized that "AI-related stocks will drive stock markets" and that "investors who lag behind should increase their investments with a differentiated approach to the theme."