UBS's AI Picks and Investment Strategy

The 12 stocks selected by UBS include Microsoft, Amazon, Texas Instruments, Celestica, Google, and Meta.

The current AI adoption rate among companies is only 8%, suggesting significant benefits from increased AI infrastructure spending.

Amazon was named UBS's top pick among large-cap companies. UBS projected Amazon Web Services (AWS) revenue estimates higher than Wall Street consensus.

With preparations for the introduction of 2nd and 3rd generation training chips starting in the second half of the year, additional growth drivers are expected.

Growth opportunities are expanding with the data center boom.

Despite an expected slowdown in data center growth next year, total revenue is projected to grow by 20%, and UBS has set a price target of $380, a 43% increase from its current price.

UBS identified Celestica as the most notable company in the telecommunications and networking equipment sector. Increased production of OpenAI's custom chips is anticipated.

Next year's revenue is expected to grow by 70%, and the company is strengthening its market position by providing Ethernet switching technology to hyperscale operators.

The data center construction business is also expected to benefit TD Synnex, a global information technology distributor. Data center infrastructure investment is projected to increase by 30% annually.

The Hyve Solutions business, in particular, is expected to benefit significantly from enhanced processing capabilities.

Revenue is expected to grow by 88%, with margins in the low 60s.

With high demand for automation software, the company occupies a unique, unrivaled position, and its price target is set at $250.

It is crucial to examine earnings per share (EPS) growth from a long-term perspective.

Companies with strong earnings growth eventually recover value and rise, despite short-term market volatility. Therefore, investors should focus on a company's fundamental growth rather than being swayed by short-term fluctuations.

For corporate analysis, it is essential to understand the sources of revenue and profit generation and their sustainability. For valuation comparison, use the price-to-earnings (P/E) ratio and discounted cash flow (DCF) models.

It is also important to check the current stock price position and momentum, and Seeking Alpha's Quant Ratings tool can provide a more effective analysis.

This tool analyzes five criteria: analyst revisions (EPS revisions), growth, profitability, valuation, and momentum.

The pentagonal shape allows for an at-a-glance view of a company's current state, greatly assisting investment decisions.

Holding stocks for the long term is the most challenging task, as it requires overcoming inherent human greed. Palantir's increasing revenue and profit serve as crucial grounds for investors to commit to long-term holding despite stock price volatility.

To overcome this nature, consistent training and thorough analysis of the company are necessary to build conviction.

SSNC maintains a long-term upward trend in revenue, with a valuation around 10x. A slight dip from recent highs is observed, with short-term trend reversals like a head-and-shoulders pattern appearing.

Such correction periods can present opportunities to buy high-quality stocks at a lower price for long-term investors.

Value stocks like AT&T are characterized by small EPS increases and stagnant growth. For such stocks, a strategy of buying when the price has fallen significantly is effective.

Value investing requires a different approach than growth stock analysis, and long-term price recovery should be anticipated.

It is advisable to exclude companies with declining EPS and stagnant revenue growth from investment consideration. Companies that are not profitable have low long-term holding value.

Such companies should be excluded from investment portfolios to efficiently manage capital.

Pinterest is a slow-growing stock with limited revenue expansion. Its current P/E ratio is about 8x, having fallen significantly.

Buying is recommended after a bounce from the previous low or after confirming a double bottom; it's best not to consider buying during a downward trend.

Spotify's performance isn't bad from a long-term perspective, but its current P/E of 32x suggests it's somewhat overvalued. The stock price remains relatively stagnant due to its overvaluation.

A double-top reversal pattern is observed on the daily chart, requiring confirmation of a bottom. Buying opportunities may be considered if the price drops below the $400-$500 range.

Visa is considered a blue-chip stock that consistently beats earnings expectations. Revenue has grown from $37 billion to $53 billion, with a P/E ratio of 26x.

Considering a correction period before breaking the previous high, a strategy of dollar-cost averaging when the stock price falls is necessary.

Currently, it is showing a sideways trend, making it crucial to identify the breakout point.

It's important to prepare for stock price volatility and continuously monitor momentum from a long-term perspective.

JFrog, a software supply chain platform company, has a high beta, leading to significant price volatility. It is crucial to confirm whether it breaks its previous high of around $100.

Competitor analysis and valuation assessment are essential before buying. It is advisable to approach with a buying perspective when the stock price has fallen significantly and to observe corporate growth over the long term.