UBS recently released a 2026 outlook report with some quite interesting core conclusions—this wave of AI market rally is far from over, and these concept stocks can still go higher next year.

Their investment director’s office gave two main reasons: companies are still frantically pouring money into infrastructure, and the actual implementation speed of AI is much faster than everyone expected. So, this isn’t just a short-term hype; it’s more like a long-term cycle that will last several years.

Where is the money going? Mainly into tangible things—AI servers, training compute devices, data center expansions, and the development of various commercial applications. The key point is that these expenses aren’t being cut back—in fact, they’re increasing.

From technical models to real enterprise application, and even transforming the entire industry chain, this process is now noticeably accelerating. The market was previously cautious, wondering whether it was a false alarm, but now it’s clear that real money is being invested.

UBS Asia-Pacific CIO Chen Minlan pointed out a very crucial point: the US and China are playing fundamentally different games.

In the US, the focus is on the top-tier players—chip giants like NVIDIA, AMD, and massive cloud service providers. Essentially, whoever controls the underlying computing power is the boss. This sector is highly volatile and risky, suitable for players who can withstand fluctuations.

In China, the approach is completely different and more pragmatic. Due to external factors, the focus is on algorithm optimization, how to land AIGC into specific industrial scenarios, alternatives to domestic computing power and chips, and how AI can deeply integrate with traditional industry chains. In other words, how to truly realize the value of these technologies.

So, if you want to deploy AI investments, the logic should be viewed separately: to capture the US wave of dividends, focus on infrastructure and large model ecosystem companies; if you are optimistic about the Chinese market, then keep an eye on industrial applications and supply chain optimization. The diversification of global AI development paths actually provides investors with more options for diversified allocation.

In summary: this AI bull market is still in its early stages, and 2026 is likely to be a year of continued capital frenzy and accelerated application deployment. The US is watching who has stronger computing power, while China focuses on who can deploy applications faster—both sides still have plenty of opportunities to explore.