Artificial intelligence (AI) momentum holds strong despite China’s DeepSeek rattling investor sentiment, UBS Global Wealth Management head of asset allocation Jason Draho says. The strategist remains positive about the tech sector on AI gains, he tells Brad Smith and Madison Mills in Morning Brief.
“Obviously, DeepSeek sort of disrupted some of the thesis overall for the tech story, but as we kind of step back and look at, [the developments were] consistent with improvement, lower costs. That wasn’t ultimately maybe the bigger game changer,” he says.
He highlights that Big Tech companies continued their massive spending on AI, suggesting, “the thesis is still very much in play.”
“Every time there’s been a bit of a hiccup, the tech stocks, these kind of mega-cap names are the ones that investors kind of go back to,” Draho says, adding, I think that will continue to play out unless there’s a real disruption in the earnings story and thus far, we expect some moderation of earnings growth from incredibly high levels to still really good levels. So, I think the thesis hasn’t changed.”
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
This post was written by Naomi Buchanan.
