UBS: The potential of AI increasingly depends on the execution capabilities of electricity and resources.

The latest view from the office of the Chief Investment Officer of UBS Wealth Management stated that the potential of AI is increasingly dependent on the execution ability in the electricity and resources sector, creating attractive opportunities for global investors. With the increase in AI capital expenditure, the entire value chain is expected to benefit significantly. By 2030, annual investments in power generation, energy storage, electric grids, data centers, electric transportation, and industrial sectors are expected to reach $3 trillion. Investors should consider diversifying and flexibly positioning companies along this value chain, as the AI revolution is closely linked with energy innovation. UBS points out that the ambitious AI plan in the United States requires a significant amount of energy investment, as the domestic capacity can only meet 25% of the energy storage demand, which will catalyze investment and innovation in the U.S. energy infrastructure. China's new energy structure not only focuses on green environmental protection, but also has strategic significance - reducing dependence on imported fossil fuels, supporting the domestic technology industry, and helping Chinese tech companies create cost advantages, allowing domestic AI chips to compete. However, investors should not view the electricity and resources sectors as another alternative option for AI. The correlation between AI and electricity and resources is relatively low, making it a valuable tool for portfolio diversification.