UOB Kay Hian Private Wealth Management
Date of Report: September 4, 2025

A Post-Earnings Reality Check on AI: Key Trends, Stock Picks, and Strategic Insights for 2025

Introduction: Private Wealth Perspective on the AI Boom

Artificial intelligence remains one of the hottest topics in global markets, capturing headlines and investor attention. Yet, as AI investing grows increasingly crowded and sentiment-driven, UOB Kay Hian Private Wealth Management offers a differentiated, research-driven approach. Led by Chief Investment Officer Qi Wang, the firm’s latest Wealth Flash report delivers actionable insights, key stock recommendations, and a rigorous analysis of the evolving AI value chain.

UOB Kay Hian’s Core Views on AI: Differentiation and Strategic Focus

UOB Kay Hian’s AI investment philosophy is grounded in:

• Fact-Based Conviction: High conviction in AI, supported by rigorous research, fact-checking, and continuous self-questioning. The approach rejects hype and momentum trading.
• Value Chain Focus: Prioritizes downstream AI (applications and edge AI) over upstream (GPUs and data centers), recognizing the growing importance of inference and real-world use cases.
• People Over Technology: Emphasizes the human impact of AI, arguing that many analysts overlook the people angle in favor of technical minutiae.
• Bullish on Chinese AI: Contrarian optimism for Chinese AI leaders, challenging consensus views that focus on China’s GPU constraints.

Major AI Trends Shaping Investment Strategy

• AI Infrastructure Investment: No slowdown in AI capital expenditure. Major tech firms continue aggressive spending as AI application workloads surge and the rise of AI agents drives further investment.
• AI Agents: The emergence of AI agents—capable of taking actions on behalf of users—signals a step change from traditional chatbots, promising to revolutionize work and daily life.
• Killer AI Applications: Digital advertising and computer programming are highlighted as the most compelling use cases, reflected in robust earnings from industry leaders.

UOB Kay Hian’s AI Stock Model Portfolio: Detailed Company Analysis

Company Highlights: What Sets Each AI Leader Apart

Amazon (AMZN)

• Continues to scale its AI applications across retail, logistics, and AWS.

Broadcom (AVGO)

• Key supplier of chips enabling AI workloads, benefiting from expanding capex in AI infrastructure.

Microsoft (MSFT)

• Leading the charge in AI agent technology, with strong positioning in cloud computing and enterprise AI solutions.

Meta Platforms (META)

• Uses AI extensively for digital advertising optimization and user engagement, underpinning robust financial performance.

Nvidia (NVDA)

• Continues to be the core hardware provider for AI model training and inference; demand for GPUs remains strong.
• Remains a crowded trade but supported by fundamentals.

Snowflake (SNOW)

• Provides cloud-native data infrastructure critical for AI applications and analytics.

Applovin (APP)

• Specializes in AI-powered advertising solutions, unlocking new efficiency for clients.

TSMC (TSM)

• Manufactures leading-edge semiconductors for global AI applications; maintains tech leadership.

Tencent (0700.HK)

• Expands AI across digital services, entertainment, and social platforms.

Trip.com (9961.HK, TCOM)

• Harnesses AI to enhance travel search, booking, and customer engagement.

Alibaba (9988.HK, BABA)

• Integrates AI into e-commerce and cloud operations, driving operational efficiency and user experience.

Meituan (3690.HK)

• Uses AI to optimize local delivery, services, and merchant interactions.

Chongqing Machinery (2722.HK)

• Implements AI in industrial processes for smart manufacturing and automation.

Strategic Observations and Market Sentiment

• UOB Kay Hian’s research emphasizes that investor focus should shift from hardware and infrastructure to application-driven growth and human impact.
• The recent US earnings season supports the thesis of continued AI capex and the rapid rise of AI agents, with digital advertising and programming as leading “killer apps.”
• Contrarian bullishness on Chinese AI stocks, leveraging strengths in downstream applications and people-centric innovations.

Disclosure and Regulatory Information

• This research is for informational purposes and does not constitute investment advice or an offer to buy/sell securities.
• Distribution is subject to jurisdictional regulations, and UOB Kay Hian entities maintain strict compliance and disclosures as required in each market.
• Analyst certifications and regulatory statements are provided to ensure transparency and independence.

Conclusion: Navigating the Next Chapter of AI Investing

AI remains an essential theme for long-term portfolios, but the landscape is changing. UOB Kay Hian Private Wealth Management urges investors to look beyond crowded trades and technical hype, focusing on applications, real-world impact, and the companies driving the next wave of AI adoption. With a robust model portfolio spanning US and Chinese leaders, the firm’s research offers clear guidance for those seeking exposure to the future of AI.
For further details on specific stock selections, model portfolios, or to access comprehensive presentations, investors are encouraged to contact their UOB Kay Hian representative.