UBS Trading Desk Says AI and Chip Selloff Is Near Its End, Urges Investors to Rebuild Positions

UBS's trading desk told clients on July 20 that the sharp selloff in momentum stocks may be nearing an end, arguing that the pullback in artificial intelligence and semiconductor shares is a chance for investors to begin rebuilding positions. The call, from Michael Romano, who leads hedge fund equity derivatives sales at the bank, frames the recent turbulence as a positioning-driven correction rather than a break in the underlying AI investment thesis, according to Bloomberg.