MW Skeptical on AI? UBS offers alternatives including Visa, BYD and the maker of Labubu dolls
By Steve Goldstein
UBS has a list of alternatives for investors who think there is an AI bubble.
Visa is among the alternatives listed by UBS for investors skeptical on AI.
Nvidia's latest results have not definitively settled the question of whether or not there's an artificial-intelligence bubble.
But what can an investor convinced there is such a bubble do? Strategists at UBS led by Michel Lerner looked at some alternative ideas.
First, they hunted for stocks in thematic exchange-traded funds - apart from AI, of course - that screen well in their HOLT valuation database but that also have strong momentum. It's a list that includes Visa (V), AppLovin (APP) and PayPal (PYPL), as well as global companies including Korean memory-chip maker SK Hynix (KR:000660).
Attractive stocks held in secular growth thematic ETFs (excluding U.S. AI), by market cap Company Country/territory Theme Visa Inc. U.S. Digital currency Applovin Corp. U.S. Videogames and E-sports SK Hynix Inc. South Korea Non-U.S. Al Iberdrola S.A. Spain Infrastructure Enel SPA Italy Infrastructure Paypal Holdings Inc. U.S. Digital currency, digital consumer Aena SME S.A. Spain Infrastructure Entergy Corp. U.S. Infrastructure Emcor Group Inc. U.S. Infrastructure Geely Automobile Holdings Ltd. Hong Kong EVs and batteries Gen Digital Inc. U.S. Cybersecurity MasTec Inc. U.S. Infrastructure Tokyo Gas Co. Japan Infrastructure Core & Main Inc. U.S. Water Carpenter Technology Corp. U.S. Infrastructure Sunny Optical Technology Group Co. Hong Kong Metaverse Acciona S.A. Spain Clean energy Mueller Industries Inc. U.S. Clean energy Yara International ASA Norway Agriculture and food innovation China Merchants Port Holdings Co. Hong Kong Infrastructure Italgas SPA Italy Infrastructure Valmont Industries Inc. U.S. Infrastructure, water Charoen Pokphand Foods PLC Thailand Agriculture and good innovation Coway Co. South Korea Water TXNM Energy Inc. U.S. Infrastructure Source: UBS
Next they looked for non-U.S. high-quality growth stocks at a reasonable price. It's a list led by Chinese electric-vehicle maker BYD (HK:1211) that also includes Labubu maker Pop Mart International (HK:9992) and U.K. private-equity firm 3i (UK:III).
Non-U.S. quality growth stocks at a reasonable price, by market cap Company Country/territory BYD Co. China DBS Group Holdings Ltd. Singapore Sumitomo Mitsui Financial Group Inc. Japan Zijin Mining Group Co. China Pop Mart International Group Ltd. Hong Kong 3i Group PLC U.K. BOC Hong Kong (Holdings) Ltd. Hong Kong Emirates NBD PJSC UAE Eoptolink Technology Inc. China Daikin Industries Ltd. Japan Skandinaviska Enskilda Banken AB Sweden Anta Sports Products Ltd. Hong Kong Swedbank AB Sweden Sungrow Power Supply Co. China Banco BTG Pactual S.A. Brazil Bank of Ningbo Co. China Inner Mongolia Yili Industrial Group Co. China Adnoc Drilling Co. PJSC UAE Wiwynn Corp. Taiwan Accton Technology Corp. Taiwan Attijariwafa Bank Morocco Mizrahi Tefahot Bank Ltd. Israel Qatar Islamic Bank QSC Qatar Meritz Financial Group Inc. South Korea Genmab A/S Denmark CSPC Pharmaceutical Group Ltd. Hong Kong Power Finance Corp. India Guangdong Haid Group Co. China Jonhon Optronic Technology Co. China National Atomic Co. Kazatomprom JSC U.K. Banco Santander-Chile Chile Vietnam Technological & Commercial JS Bank Vietnam Vietnam Joint Stock Commercial Bank for Industry and Trade Vietnam Bank of Chengdu Co. China Source: UBS
Finally, they looked for attractive opportunities in sectors that are the least correlated to the performance of technology. That includes companies including Stop & Shop owner Ahold (NL:AD), broadcaster Fox $(FOX)$ and Warner Music (WMG). (Fox Corp. shares common ownership with News Corp, the parent company of MarketWatch publisher Dow Jones.)
Attractive opportunities in sectors that are least correlated to the performance of the technology sector Company Industry Country/territory Cnooc Ltd. Energy China Enel SPA Utilities Italy Wuliangye Yibin Co. Consumer staples China EOG Resources Inc. Energy U.S. Koninklijke Ahold Delhaize N.V. Consumer staples Netherlands Imperial Brands PLC Consumer staples U.K. Shanxi Xinghuacun Fen Wine Factory Co. Consumer staples China Sun Hung Kai Properties Ltd. Real estate Hong Kong Luzhou Lao Jiao Co. Consumer staples China Naturgy Energy Group S.A. Utilities Spain Fox Corp. Communication services U.S. Advanced Info Service PLC Communication services Thailand Naver Corp. Communication services South Korea Aldar Properties PJSC Real estate UAE
MW Skeptical on AI? UBS offers alternatives including Visa, BYD and the maker of Labubu dolls
By Steve Goldstein
UBS has a list of alternatives for investors who think there is an AI bubble.
Visa is among the alternatives listed by UBS for investors skeptical on AI.
Nvidia's latest results have not definitively settled the question of whether or not there's an artificial-intelligence bubble.
But what can an investor convinced there is such a bubble do? Strategists at UBS led by Michel Lerner looked at some alternative ideas.
First, they hunted for stocks in thematic exchange-traded funds - apart from AI, of course - that screen well in their HOLT valuation database but that also have strong momentum. It's a list that includes Visa (V), AppLovin (APP) and PayPal (PYPL), as well as global companies including Korean memory-chip maker SK Hynix (KR:000660).
Attractive stocks held in secular growth thematic ETFs (excluding U.S. AI), by market cap Company Country/territory Theme Visa Inc. U.S. Digital currency Applovin Corp. U.S. Videogames and E-sports SK Hynix Inc. South Korea Non-U.S. Al Iberdrola S.A. Spain Infrastructure Enel SPA Italy Infrastructure Paypal Holdings Inc. U.S. Digital currency, digital consumer Aena SME S.A. Spain Infrastructure Entergy Corp. U.S. Infrastructure Emcor Group Inc. U.S. Infrastructure Geely Automobile Holdings Ltd. Hong Kong EVs and batteries Gen Digital Inc. U.S. Cybersecurity MasTec Inc. U.S. Infrastructure Tokyo Gas Co. Japan Infrastructure Core & Main Inc. U.S. Water Carpenter Technology Corp. U.S. Infrastructure Sunny Optical Technology Group Co. Hong Kong Metaverse Acciona S.A. Spain Clean energy Mueller Industries Inc. U.S. Clean energy Yara International ASA Norway Agriculture and food innovation China Merchants Port Holdings Co. Hong Kong Infrastructure Italgas SPA Italy Infrastructure Valmont Industries Inc. U.S. Infrastructure, water Charoen Pokphand Foods PLC Thailand Agriculture and good innovation Coway Co. South Korea Water TXNM Energy Inc. U.S. Infrastructure Source: UBS
Next they looked for non-U.S. high-quality growth stocks at a reasonable price. It's a list led by Chinese electric-vehicle maker BYD (HK:1211) that also includes Labubu maker Pop Mart International (HK:9992) and U.K. private-equity firm 3i (UK:III).
Non-U.S. quality growth stocks at a reasonable price, by market cap Company Country/territory BYD Co. China DBS Group Holdings Ltd. Singapore Sumitomo Mitsui Financial Group Inc. Japan Zijin Mining Group Co. China Pop Mart International Group Ltd. Hong Kong 3i Group PLC U.K. BOC Hong Kong (Holdings) Ltd. Hong Kong Emirates NBD PJSC UAE Eoptolink Technology Inc. China Daikin Industries Ltd. Japan Skandinaviska Enskilda Banken AB Sweden Anta Sports Products Ltd. Hong Kong Swedbank AB Sweden Sungrow Power Supply Co. China Banco BTG Pactual S.A. Brazil Bank of Ningbo Co. China Inner Mongolia Yili Industrial Group Co. China Adnoc Drilling Co. PJSC UAE Wiwynn Corp. Taiwan Accton Technology Corp. Taiwan Attijariwafa Bank Morocco Mizrahi Tefahot Bank Ltd. Israel Qatar Islamic Bank QSC Qatar Meritz Financial Group Inc. South Korea Genmab A/S Denmark CSPC Pharmaceutical Group Ltd. Hong Kong Power Finance Corp. India Guangdong Haid Group Co. China Jonhon Optronic Technology Co. China National Atomic Co. Kazatomprom JSC U.K. Banco Santander-Chile Chile Vietnam Technological & Commercial JS Bank Vietnam Vietnam Joint Stock Commercial Bank for Industry and Trade Vietnam Bank of Chengdu Co. China Source: UBS
Finally, they looked for attractive opportunities in sectors that are the least correlated to the performance of technology. That includes companies including Stop & Shop owner Ahold (NL:AD), broadcaster Fox (FOX) and Warner Music (WMG). (Fox Corp. shares common ownership with News Corp, the parent company of MarketWatch publisher Dow Jones.)
Attractive opportunities in sectors that are least correlated to the performance of the technology sector Company Industry Country/territory Cnooc Ltd. Energy China Enel SPA Utilities Italy Wuliangye Yibin Co. Consumer staples China EOG Resources Inc. Energy U.S. Koninklijke Ahold Delhaize N.V. Consumer staples Netherlands Imperial Brands PLC Consumer staples U.K. Shanxi Xinghuacun Fen Wine Factory Co. Consumer staples China Sun Hung Kai Properties Ltd. Real estate Hong Kong Luzhou Lao Jiao Co. Consumer staples China Naturgy Energy Group S.A. Utilities Spain Fox Corp. Communication services U.S. Advanced Info Service PLC Communication services Thailand Naver Corp. Communication services South Korea Aldar Properties PJSC Real estate UAE
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August 28, 2025 11:10 ET (15:10 GMT)
MW Skeptical on AI? UBS offers alternatives -2-
Inpex Corp. Energy Japan China Longyuan Power Group Corp. Utilities China Tenaris S.A. Energy Italy Warner Music Group Corp. Communication services U.S. CK Asset Holdings Ltd. Real Estate Hong Kong Santos Ltd. Energy Australia Vinhomes JSC Real estate Vietnam Tokyo Gas Co. Utilities Japan WH Group Ltd. Consumer staples Hong Kong China Resources Mixc Lifestyle Services Ltd. Real estate Hong Kong Henan Shuanghui Investment & Development Co. Consumer staples China Omega Healthcare Investors Inc. Real estate U.S. China Resources Beer (Holdings) Co. Consumer staples China Klepierre S.A. Real estate France HKT Trust & HKT Ltd. Communication services Hong Kong Airtel Africa PLC Communication services U.K. Source: UBS
-Steve Goldstein
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August 28, 2025 11:10 ET (15:10 GMT)
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