AI stock correction is 'excessive expectation adjustment'… UBS CEO acknowledges election impact

UBS CEO Sergio Ermotti said the recent sharp correction in U.S. AI-related stocks reflects markets unwinding excessive expectations rather than a change in the technology's long-term value. He acknowledged that the outcome of the U.S. midterm elections could slow AI infrastructure investment and delay how quickly the industry converts its promise into realized value. Ermotti framed the central issue as the timing of AI returns rather than their eventual scale, and advised clients not to over-focus on short-term political developments when allocating assets. The remarks, reported by Cailianshe on the 9th, matter because they signal that a major bank sees the selloff as a repricing of timelines, not a rejection of the AI thesis. What to watch next is whether post-election policy signals affect AI infrastructure spending plans and whether earnings begin to validate the sector's valuations.