UBS strategists told Bloomberg that AI is 'no longer the only game in town' for equity investors, flagging that capital is rotating toward other sectors as AI-driven growth expectations moderate. The comments followed a broad sell-off in U.S. tech equities.
For enterprise tech buyers and vendors, a sustained rotation away from pure-AI plays could compress valuations and tighten the funding environment for AI infrastructure and software companies — a trend worth watching into Q2 earnings season.