UBS On-Air: Market Moves Ahead of the curve with Ulrike Hoffmann-Burchardi
Sep 1, 2025
Explore the latest market signals impacting the U.S. economy, with a focus on AI infrastructure and economic resilience. Delve into the August employment report and key GDP statistics that shape investment strategies. Discover the implications of AVGO’s earnings and current equity valuations. Gain insights on navigating potential market volatility, especially in financial and healthcare sectors, while identifying unique opportunities that challenge the consensus.
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AI Infrastructure Growth And Compute Needs
- NVIDIA projects $3–4 trillion of annual AI infrastructure spend by 2030, implying very high multi-year growth.
- UBS estimates compute needs rising to ~20 zeta-flops, requiring ~5x current installed compute capacity.
Historical Precedent For Rapid CapEx Growth
- Historical precedents show sustained 30%+ capex growth can occur, like 1830s U.S. railroads.
- That outside view tempers overconfidence when projecting long-term tech capex expansion.
Resilient U.S. Growth Despite Labor Weakness
- U.S. Q2 GDP was revised up to 3.3% from 3%, led by consumer spending and private investment.
- That shows the economy and consumer remain resilient despite a softer labor market.
