Prospects for “big tech” are promising, says UBS

The outlook for large technology companies remains promising. Second-quarter earnings for Big Tech have been robust and comprehensive, with most companies beating second-quarter sales and earnings per share estimates, according to a UBS analysis.

According to the document, "future projections also remained unchanged, with cloud revenues across the largest platforms growing more than 25% year-over-year in the June quarter. Our 2025 S&P 500 earnings per share estimate is $265, implying 6% growth, with the possibility of further upward revisions."

"Second-quarter results from major tech companies have been solid and across the board, with most companies beating sales and EPS estimates. Our 2025 EPS estimate for the S&P 500 is $265, implying 6% growth, with potential for upward revisions , " says Mark Haefele, Chief Investment Officer at UBS Global Wealth Management.

Regarding AI computing, UBS says that it "remains a key driver of growth. Semiconductors have outperformed software in recent months, sparking debate about whether AI is transferring value from software to semiconductors."