UBS has set out a clear roadmap for how investors should position for 2026, arguing that artificial intelligence will remain one of the biggest drivers of long-term returns, but that the next wave of automation is beginning to open up as well.
The strategy, laid out in its latest Investment Strategy Insights, is pitched squarely at everyday investors who want to understand how a global wealth manager is preparing client portfolios for the years ahead.
The central message is simple: don’t under-invest in AI. With most of the major technology companies in the United States and China, UBS says European, Middle Eastern and African investors risk being underexposed unless they make deliberate allocations.
The bank expects spending on AI infrastructure to reach $1.3 trillion by 2030 and believes the overall market could grow at 30% a year. It also highlights Chinese technology stocks as a high-conviction idea for 2026, noting that innovation accelerated last year and earnings growth of nearly 40% is expected. Despite a strong run, valuations still sit well below global peers.
But UBS stresses that the opportunity is no longer limited to chips and data centres. It recommends spreading investments across three layers of the AI ecosystem: the enabling layer (such as semiconductors and infrastructure), the intelligence layer (the software and models), and the application layer (companies using AI to transform services).
As AI matures, UBS expects the application side to offer the most compelling long-term returns because that is where corporate spending is now flowing.
The bank also urges investors not to ignore opportunities “closer to home”. Data centre development is becoming more geographically diverse, with the Gulf region emerging as a major hub thanks to abundant capital, reliable power and supportive policy.
Adoption is also incredibly high: 58% of consumers in the UAE and Saudi Arabia use AI tools weekly, compared with 20% in the UK. This makes the region an increasingly important part of the global AI story.
Beyond AI itself, UBS argues that the next frontier is autonomous systems, from humanoid robots and advanced driver-assistance systems to smart glasses and robotic surgery. It estimates this segment could grow into a $400 billion market over the next decade.
Investing here, it says, complements exposure to Europe’s industrial automation leaders, which are well placed for structural reform and cyclical recovery.
UBS’s overall advice is to build diversified exposure across AI and automation globally, balancing US and Chinese tech giants with local champions in the Gulf and Europe.