UBS On-Air: Market Moves Signal over Noise with Ulrike Hoffmann-Burchardi
Nov 16, 2025
Get insights into the Fed's rate-cut debate and how muddled data is affecting market pricing. Ulrike unveils new AI infrastructure developments and discusses the disparity in public valuations between AI enablers and users. Explore the concentration of AI value among chipmakers and hyperscalers versus lagging application-layer firms. Healthcare emerges as a promising diversification strategy against AI risks, with notable progress in obesity treatments. Stay tuned for upcoming NVIDIA earnings and the latest on AI monetization signals.
AI Snips
Chapters
Transcript
Episode notes
Fed Decision Clouded By Missing Data
- The Fed decision is clouded because key CPI and payroll data may be unavailable due to the shutdown disruption.
- UBS expects the labor market to determine policy and still favors a December rate cut despite data gaps.
Strong AI Build-Out, Weak Market Reaction
- Recent AI infrastructure data points were strong from AMD, Corvive, and Anthropic pointing to heavy build-out demand.
- Yet the NASDAQ fell, suggesting markets still doubt how AI spending will be monetized.
Public Markets Favor AI Enablers
- Public markets have primarily rewarded AI enablers (chips and hyperscalers) while users haven't seen similar gains.
- Possible reasons include uncertain ROI timing, concentrated enabler market share, and competition among application-layer firms.