27 January 2025, 08:41AM UTC

Chief Investment Office GWM

Investment Research

Intelligence weekly #18: Focus on upcoming

results amid concerns around DeepSeek
Information technology
Authors: Sundeep Gantori, CFA, CAIA, Equity Strategist, UBS AG Singapore Branch; Kevin Dennean, CFA, CIO Equity Strategist, US Technology & Telecom,
UBS Financial Services Inc. (UBS FS); Delwin Kurnia Limas, CFA, Equity Strategist, UBS AG Singapore Branch; Achille Monnet, CFA, CIO Equity Sector
Strategist, UBS Switzerland AG

• Market sentiment on AI and big tech has turned

negative following the initial success of China-based
DeepSeek’s V3 and R1 large language models, which
are reportedly trained at significantly lower training
costs with deep discounts on inference.
• While DeepSeek’s aggressive pricing strategy raises
questions on big tech’s high capex intensity, we need
to understand that DeepSeek’s models still have many
limitations compared to the frontier models from
big tech coupled with limited transparency so far Source: Getty Images, UBS, as of 2024
on training methodology. Hence, we wait for more
details during the upcoming tech company results
before reaching any conclusions.
• Hence, we recommend investors to stay calm
and take advantage of extreme volatility through
structures and buy the dip in quality stocks. Our
previous study also highlighted that any undue
correction in quality stocks/tech benchmarks barring
a major macroeconomic event historically proved to
be good buying opportunities.

Thoughts of the week versus application layers. With few details about DeepSeek
DeepSeek's recent models have raised market concerns and its business model available currently, we recommend
regarding its potential impact on the competitiveness of US investors to focus on the upcoming tech company results
big tech and the broader AI capex momentum. NASDAQ for more guidance, instead of panicking (see Fig. 4 for the
futures are down 3% at the time of writing as the models upcoming earnings calendar).
reportedly promise good performance at a fraction of the
training and inference costs of leading frontier models. Assuming DeepSeek’s multi-head latent attention (MHA)
and its mixture of experts (MOE) training technique is indeed
With the recent initial success of DeepSeek’s large language the way to go for the broader AI industry, we still see a bright
AI models, investors are grappling with concerns about outlook for AI as potentially lower costs would accelerate
potential AI price wars, Big 4’s AI capex intensity, and how to AI adoption with artificial general intelligence (AGI) coming
navigate investments across the various layers like enabling sooner than expected. While that means investors need to

This report has been prepared by UBS AG Singapore Branch and UBS Financial Services Inc. (UBS FS) and UBS Switzerland
AG. Please see important disclaimers and disclosures that begin on page 7.
Information technology

tilt their AI portfolios in favor of AI application (our current - Marc Benioff, CEO of Salesforce.com
allocation is 25-30% in the AI portfolio) and the intelligence
layer (15-20%) over the enabling layer (50-60%). But we
believe it is too early to make any conclusions at this
Charts of the week
stage as more clarity should emerge in the next few
weeks. The introduction of cheaper Chinese smartphones Fig. 1: Meta's recent capex upgrade supports
has led to a wider adoption of smartphones globally, strong Big 4 capex spending in 2025
with industry leader Apple still maintaining dominance in Our current estimates project 25% capex growth in 2025 (in USD bn)
premium smartphones with an almost 80% industry profit
share for almost a decade.

Meanwhile, Meta’s strong upward capex revision on Friday

amidst DeepSeek’s initial success with 2025 capex is
expected to be around USD 60-65bn. That’s potentially
USD 10bn above consensus forecasts, highlighting leading
US players’ strong capex spending trends are intact. Still,
we recommend investors to closely monitor the upcoming
results and take advantage of any extreme volatility through
structured strategies and buy the dip in quality stocks.

During the past decade, there has been at least one 10% Source: Company reports, UBS estimates as of January 2025
valuation reset in global tech every year (except in 2017,
which experienced a strong bull market). Barring the 30% Fig. 2: Benchmark performance of DeepSeek R1
or so reset in 2022 which was driven by macroeconomic Accuracy / Percentile (%)
events (rising rates and Russia-Ukraine escalations), over the
past decade tech indices have rebounded strongly over the
next twelve months after a 10% valuation reset as investors
reward the sector for its strong growth (see Fig. 3 for the
performance of NASDAQ Composite following corrections
in the past decade).

AI selection list

Source: Company data, UBS as of 2025

*Potential trading restrictions. This is a copy of the Equity Preference List

(EPL) "AI." As selections may change, we recommend visiting the UBS WM
CIO portal (which also lists the analysts responsible for the selections and
the thematic benchmark), or contacting your client advisor for the latest
update of this EPL.

Quotes of the week

"DeepSeek R1 is AI's Sputnik moment" - Marc Andreessen,
General partner of Andreessen Horowitz

"The real treasure of AI isn’t the UI or the model—they’ve

become commodities. The true value lies in data and
metadata, the oxygen fueling AI’s potential. The future’s
fortune? It’s in our data. Deepgold"

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Fig. 3: NASDAQ Composite's 12-month Fig. 4: Earnings calendar of companies in our

performance following past corrections AI list
12-month forward return (%)

Source: Bloomberg, Factset, UBS as of January 2025

Source: Factset, UBS as of January 2025

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12 month rating history

Release date Company name Equity Preference List Current selection Previous selection
Dec 23 2024 ARM Holdings Plc AI Most Preferred Not Listed
Jun 26 2024 ARM Holdings Plc AI Not Listed Most Preferred
Apr 10 2024 ARM Holdings Plc AI Most Preferred -
Jan 20 2025 ARM Holdings Plc SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred -
Jul 15 2024 ASML 30 for '30 Not Listed Most Preferred
Apr 25 2024 ASML European Greentech Most Preferred Not Listed
Mar 12 2024 ASML European Greentech Not Listed Most Preferred
Jul 26 2024 ASML Greentech goes global Not Listed Most Preferred
Dec 10 2024 ASML SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Oct 29 2024 ASML SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Jul 23 2024 ASML SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Jul 09 2024 ASML SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Jun 25 2024 ASML SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
May 28 2024 ASML SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Apr 18 2024 ASML SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Dec 10 2024 Accenture PLC SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Apr 10 2024 Adobe Systems Inc. 30 for '30 Not Listed Most Preferred
Sep 11 2024 Adobe Systems Inc. AI Most Preferred Not Listed
Mar 25 2024 Adobe Systems Inc. AI Not Listed Most Preferred
Dec 09 2024 Adobe Systems Inc. Global top list Most Preferred -
Dec 10 2024 Adobe Systems Inc. SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Jan 03 2025 Adobe Systems Inc. USA Not Listed Most Preferred
Mar 21 2024 Adobe Systems Inc. USA Most Preferred -
Dec 13 2024 Advanced Micro Devices Asia’s new mobility Not Listed Most Preferred
Dec 10 2024 Advanced Micro Devices SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Dec 19 2024 Alibaba 30 for '30 Most Preferred -
Dec 17 2024 Alibaba Asia New Economy Leaders Not Listed Most Preferred
Sep 03 2024 Alibaba Asia ex-Japan Focus 20 Most Preferred Not Listed
Mar 07 2024 Alibaba Asia ex-Japan Focus 20 Not Listed Most Preferred
Dec 09 2024 Alibaba Global top list Not Listed Most Preferred
Oct 15 2024 Alibaba Global top list Most Preferred Not Listed
Dec 06 2024 Alibaba Greater China Alpha Opportunities Not Listed Most Preferred
Aug 21 2024 Alibaba Greater China Alpha Opportunities Most Preferred Not Listed
Aug 09 2024 Alphabet Inc Asia’s new mobility Not Listed Most Preferred
Jan 20 2025 Alphabet Inc SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Dec 23 2024 Alphabet Inc SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Dec 10 2024 Alphabet Inc SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Sep 18 2024 Amazon.com SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Sep 06 2024 Amazon.com SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Jan 20 2025 Apple Inc. SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Dec 10 2024 Apple Inc. SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Jul 26 2024 Applied Materials Inc. Greentech goes global Not Listed Most Preferred
Dec 10 2024 Arista Networks Inc SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred -
Sep 12 2024 Baidu, Inc. 30 for '30 Not Listed Most Preferred
Apr 16 2024 Baidu, Inc. Asia New Economy Leaders Not Listed Most Preferred
Sep 03 2024 Baidu, Inc. Asia ex-Japan Focus 20 Not Listed Most Preferred
May 28 2024 Baidu, Inc. China Not Listed Most Preferred
Jun 21 2024 Baidu, Inc. China Tech Not Listed Most Preferred
Jun 13 2024 Baidu, Inc. Global top list Not Listed Most Preferred
Mar 22 2024 Baidu, Inc. Greater China Alpha Opportunities Not Listed Most Preferred
Jun 13 2024 Baidu, Inc. Greentech goes global Not Listed Most Preferred
Dec 19 2024 Broadcom Inc. 30 for '30 Not Listed Most Preferred
May 21 2024 Cisco Systems Inc. Asia’s new mobility Not Listed Most Preferred
Dec 10 2024 Cisco Systems Inc. SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Mar 21 2024 Cisco Systems Inc. USA Not Listed Most Preferred
Dec 05 2024 CrowdStrike Holdings Inc 30 for '30 Most Preferred -
Jan 20 2025 CrowdStrike Holdings Inc SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Dec 24 2024 Datadog Inc AI Most Preferred -
Sep 19 2024 Dell Technologies Inc. AI Most Preferred Not Listed
Jan 20 2025 Dell Technologies Inc. SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred -

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12 month rating history

Release date Company name Equity Preference List Current selection Previous selection
Jan 03 2025 Dell Technologies Inc. US Information technology Most Preferred -
Sep 18 2024 Intel Corp. Infrastructure and reshoring Most Preferred -
Dec 10 2024 Intel Corp. SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Dec 10 2024 KLA Corporation SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred -
Dec 10 2024 LAM Research Corporation SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Jan 20 2025 Marvell Technology Group Ltd. SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Dec 10 2024 Marvell Technology Group Ltd. SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Dec 02 2024 Meta Platforms SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Sep 18 2024 Meta Platforms SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Sep 06 2024 Meta Platforms SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Jul 09 2024 Meta Platforms SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Jun 25 2024 Meta Platforms SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Jun 11 2024 Meta Platforms SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Aug 28 2024 Micron Technology Inc Asia’s new mobility Not Listed Most Preferred
Aug 09 2024 Micron Technology Inc Asia’s new mobility Most Preferred Not Listed
Jul 30 2024 Micron Technology Inc Asia’s new mobility Not Listed Most Preferred
Jul 22 2024 Micron Technology Inc Greentech goes global Not Listed Most Preferred
Sep 18 2024 Micron Technology Inc Infrastructure and reshoring Most Preferred -
Apr 03 2024 Micron Technology Inc SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Mar 20 2024 Micron Technology Inc SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Mar 05 2024 Micron Technology Inc SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Jan 03 2025 Micron Technology Inc USA Most Preferred -
Dec 02 2024 Microsoft Corp. SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Sep 06 2024 Microsoft Corp. SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Jun 25 2024 Microsoft Corp. SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Dec 24 2024 MongoDB Inc AI Most Preferred -
Jan 20 2025 MongoDB Inc SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred -
Dec 10 2024 NVIDIA Corporation SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Dec 02 2024 NVIDIA Corporation SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Jan 15 2025 NXP Semiconductors NV AI Most Preferred -
Apr 10 2024 Oracle Corporation 30 for '30 Most Preferred -
Dec 24 2024 Oracle Corporation Greentech goes global Not Listed Most Preferred
Jan 20 2025 Oracle Corporation SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Dec 10 2024 Oracle Corporation SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Sep 18 2024 Palo Alto Networks Infrastructure and reshoring Most Preferred -
Jan 20 2025 Palo Alto Networks SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Dec 10 2024 Palo Alto Networks SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Oct 29 2024 Palo Alto Networks SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Sep 18 2024 Palo Alto Networks SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Jul 23 2024 Palo Alto Networks SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Jul 09 2024 Palo Alto Networks SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
May 15 2024 Palo Alto Networks Sustainable investing, global leaders Most Preferred -
Sep 11 2024 Qualcomm Inc. AI Most Preferred Not Listed
Apr 15 2024 Qualcomm Inc. AI Not Listed Most Preferred
Oct 24 2024 Qualcomm Inc. Asia’s new mobility Not Listed Most Preferred
Nov 05 2024 Qualcomm Inc. US Information technology Not Listed Most Preferred
Sep 20 2024 Salesforce.com 30 for '30 Most Preferred Not Listed
May 30 2024 Salesforce.com 30 for '30 Not Listed Most Preferred
Dec 10 2024 Salesforce.com SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Sep 06 2024 Salesforce.com SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Jun 11 2024 Salesforce.com SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Dec 05 2024 Samsung Electronics 30 for '30 Not Listed Most Preferred
Jul 15 2024 Samsung Electronics 30 for '30 Most Preferred Not Listed
Sep 11 2024 Samsung Electronics Asia’s new mobility Not Listed Most Preferred
Aug 09 2024 Samsung Electronics Asia’s new mobility Most Preferred Not Listed
Dec 09 2024 Samsung Electronics Global top list Not Listed Most Preferred
May 06 2024 Samsung Electronics Global top list Most Preferred Not Listed
Oct 03 2024 Samsung Electronics Greentech goes global Not Listed Most Preferred
Jun 20 2024 Samsung Electronics Greentech goes global Most Preferred Not Listed
Sep 19 2024 Snowflake AI Most Preferred -
Dec 06 2024 Taiwan Semiconductor Manufacturing Greater China Alpha Opportunities Most Preferred -
Sep 18 2024 Taiwan Semiconductor Manufacturing Infrastructure and reshoring Most Preferred -
Dec 09 2024 Tencent Holdings Global top list Most Preferred Not Listed
Dec 10 2024 Tencent Holdings SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred -
Jul 24 2024 Texas Instruments Inc. AI Most Preferred Not Listed

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12 month rating history

Release date Company name Equity Preference List Current selection Previous selection
Oct 24 2024 Texas Instruments Inc. Asia’s new mobility Most Preferred -
Jan 20 2025 Texas Instruments Inc. SPL - Equity Reverse Convertibles Tactical Opportunity List Not Listed Most Preferred
Dec 10 2024 Texas Instruments Inc. SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred Not Listed
Jan 03 2025 Texas Instruments Inc. US Information technology Most Preferred -
Feb 22 2024 Tokyo Electron AI Most Preferred -
May 17 2024 Tokyo Electron Asia New Economy Leaders Most Preferred -
Jul 19 2024 Tokyo Electron Asia’s new mobility Not Listed Most Preferred
Feb 27 2024 Tokyo Electron Asia’s new mobility Most Preferred Not Listed
Jul 19 2024 Tokyo Electron Greentech goes global Not Listed Most Preferred
Feb 05 2024 Tokyo Electron Greentech goes global Most Preferred -
Mar 12 2024 Tokyo Electron Japan Most Preferred Not Listed
Feb 14 2024 Uber Technologies Inc 30 for '30 Most Preferred -
Dec 10 2024 Uber Technologies Inc SPL - Equity Reverse Convertibles Tactical Opportunity List Most Preferred -
May 15 2024 Uber Technologies Inc Sustainable investing, global leaders Most Preferred -

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Appendix
Required Disclosures
Company/Country Disclosures (27 January 2025)
Within the past 12 months UBS AG, its affiliates or subsidiaries may have received or provided investment services and
activities or ancillary services as per MiFID II which may have given rise to a payment or promise of a payment in relation to
these services from or to each company mentioned in the publication.

Accenture PLC 1, 3, 10, 12, Adobe Systems Inc. 1, 3, Advanced Micro Devices 3, 10, 12, 13, Alibaba 2, 3, 5, 9, 10, 15, 16,
17, Alphabet Inc 1, 3, 14, Amazon.com 2, 3, 14, Apple Inc. 1, 2, 3, 6, 7, 8, 9, 10, 11, Applied Materials Inc. 1, 2, 3, 10,
12, 13, Arista Networks Inc 1, 3, ARM Holdings Plc 1, 3, ASML 1, 3, Baidu, Inc. 1, 3, 5, 10, 16, Broadcom Inc. 1, 3, Cisco
Systems Inc. 1, 3, 9, CrowdStrike Holdings Inc 1, 3, Datadog Inc 1, 3, 18, Dell Technologies Inc. 1, 3, 9, 11, 15, Intel Corp.
1, 3, 7, 10, KLA Corporation 3, LAM Research Corporation 1, 2, 3, Marvell Technology Group Ltd. 1, 3, Meta Platforms 1,
3, 14, Micron Technology Inc 1, 2, 3, 10, Microsoft Corp. 1, 2, 3, 6, 7, 8, 9, 10, 11, MongoDB Inc 1, 3, Netflix Inc 1, 3,
6, NVIDIA Corporation 2, 3, NXP Semiconductors NV 3, 7, 9, 10, 11, Oracle Corporation 1, 3, 10, Palo Alto Networks 1,
3, 19; Qualcomm Inc. 1, 3, 10, Salesforce.com 1, 3, Samsung Electronics 1, 2, ServiceNow 1, 2, 3, 10, 12, Snowflake 1,
3, 13, Taiwan Semiconductor Manufacturing 1, 3, 4, Tencent Holdings 5, 6, Texas Instruments Inc. 1, 3, 10, 12, 14, Tokyo
Electron 1, Uber Technologies Inc 3, 9, 11, 13, 15,
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and at -15% below the MRA for a Sell rating (compared with 6/-6% under the normal rating system).
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capital of this company.
For a complete set of required disclosures relating to the companies that are the subject of this report, please mail a request
to UBS CIO Global Wealth Management Business Management, 1285 Avenue of the Americas, 8th Floor, Avenue of the
Americas, New York, NY 10019.
Contact
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disclosures with regard to financial instruments and/or issuers, please contact the mailbox [email protected] (note that
e-mail communication is unsecured) or contact your client advisor for assistance.
Frequency of updates

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Equity recommendation lists can be updated on a daily basis, and are refreshed whenever there is a material change.
Risk views on bond issuers and instruments are affirmed sporadically and changed ad hoc, subject to market
developments.
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regulated by the Central Bank of Bahrain. UBS AG Dubai Branch is licensed in the Dubai International Financial Centre (DIFC)
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Centre Regulatory Authority. UBS Saudi Arabia is authorised and regulated by the Capital Market Authority to conduct
securities business under licence number 08113-37. UBS Brasil Administradora de Valores Mobiliários Ltda. is regulated
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authorized and regulated by the Qatar Financial Centre Regulatory Authority (QFCRA). Credit Suisse Saudi Arabia is duly

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Equity selection system

(For US sector Equity Preferences)

US equity sector strategists provide three equity selections:
Most Preferred: We expect the stock to outperform the benchmark in the next 12 months.
Least Preferred: We expect the stock to underperform the benchmark in the next 12 months.
Bellwether: Stocks are of high importance or relevance to the sector and which the equity sector strategist expects to
perform broadly in line with the sector benchmark in the next 12 months (not rated as Most Preferred or Least Preferred).
Equity Preferences prepared by ex-US analysts don't have stocks with a Bellwether designation.
Securities in the US versions of the Equity Preference List have been removed from distribution outside the US if the security
is Bellwether.
Restricted: Issuing of research on a company by CIO GWM can be restricted due to legal, regulatory, contractual or best
business practice obligations which are normally caused by UBS Investment Bank’s involvement in an investment banking
transaction in regard to the concerned company.
The sector views represent degrees of preference relative to the S&P 500 benchmark allocation: - = moderately less preferred,
- - = less preferred, - - - = least preferred, + = moderately preferred, ++ = preferred, +++ = most preferred

Equity selection: An assessment relative to a benchmark

Equity selections in Equity Preferences lists (EPLs) are assessments made relative to a sector/industry, country/regional or
thematic benchmark. The chosen benchmark is disclosed on the front page of each EPL. It is also used to measure the
performance of the EPL owner(s). Including a stock in the EPL constitutes neither a view on its expected, standalone absolute
performance nor a price target. Rather, EPLs are meant to support the UBS House View, with the stocks included in them
selected for their superior risk/return profiles.
Our selection is based on an assessment of the company's fundamental outlook and valuation, the risks owning the stock
entails, including material sustainability risks and the diversification benefits it provides in an investment portfolio, among
many other factors. UBS GWM CIO‘s selection methodology enables wealth management clients to invest in a specific
investment theme or focus on a sector/industry or country/region.
The lead strategist is responsible for the CIO view on a stock, while the EPL owner(s) is/are responsible for the stock selection
within an EPL. Stocks can be selected for multiple EPLs. For consistency's sake, a stock can only be selected as either Most
Preferred or Least Preferred, not both simultaneously. As EPL benchmarks differ, stocks do not need to be included on every
list to which they could theoretically be added.
The country EPL is a list of Most Preferred recommended stocks that our US Equity Sector Strategy team feels are best
positioned within their respective sector coverage to outperform their respective sector benchmark over a 12-month
investment horizon. These selections should not be viewed as a portfolio as they represent a current snapshot of our views. In
the event that a recommended stock is no longer Most Preferred, the list will be updated in the next monthly publication. As
such, these recommendations are only valid as of the date of the report and performance for this list will not be calculated.
For updates to the views on these names, please consult the most recent Equity Preferences List (EPL) for the relevant sector,
which may be obtained from your Advisor.
Global asset class preferences definitions
The asset class preferences provide high-level guidance to make investment decisions. The preferences reflect the collective
judgement of the members of the House View meeting, primarily based on assessments of expected total returns on liquid,
commonly known stock indexes, House View scenarios, and analyst convictions over the next 12 months. Note that the
tactical asset allocation (TAA) positioning of our different investment strategies may differ from these views due to factors
including portfolio construction, concentration, and borrowing constraints.
1. Most attractive – We consider this asset class to be among the most attractive. Investors should seek opportunities to
add exposure.
2. Attractive – We consider this asset class to be attractive. Consider opportunities in this asset class.
3. Neutral – We do not expect outsized returns or losses. Hold longer-term exposure.
4. Unattractive – We consider this asset class to be unattractive. Consider alternative opportunities.
5. Least attractive – We consider this asset class to be among the least attractive. Seek more favorable alternative
opportunities

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Current CIO GWM Americas global rating distribution

% of companies under coverage with this rating* % for which IB services have been provided**
Rating*
Most Preferred 48.98 12.50
Bellwether 50.51 15.15
Least Preferred 0.51 0.00
*Under our industry sector relative stock view system, Most Preferred most closely corresponds with a "buy" recommendation,
Bellwether most closely corresponds with a "hold" recommendation and Least Preferred most closely corresponds with a "sell"
recommendation.
**Percentage of companies within this rating for which investment banking services were provided by UBS AG or UBS Securities
LLC or its affiliates within the past 12 months.
Source: UBS Financial Services Inc., its subsidiaries and affiliate, as of Jan 27 2025.
Statement of Risk
Equities - Stock market returns are difficult to forecast because of fluctuations in the economy, investor psychology,
geopolitical conditions and other important variables.
Current UBS CIO global rating distribution (as of last month-end)

Least Preferred 1% .. . .
Most Preferred 99% .. . .

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Disclaimer
UBS Chief Investment Office's ("CIO") investment views are prepared and published by the Global Wealth Management business
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investment research.
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Disclaimer
conflicts and maintains independence of its investment views and publication offering, and research and rating methodologies,
please visit www.ubs.com/research-methodology. Additional information on the relevant authors of this publication and other
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about/publications/character-risks.jsp or ask your financial advisor for a copy.
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Structured investments are not traditional investments and investing in a structured investment is not equivalent to investing
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Important Information About Sustainable Investing Strategies: Sustainable investing strategies aim to consider and
incorporate environmental, social and governance (ESG) factors into investment process and portfolio construction. Strategies
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Version D/2024. CIO82652744
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