European Data Center-Linked Stocks Seen as Underappreciated

Dow Jones
Sep 22

1020 GMT - European stocks linked to the buildout in artificial intelligence are undervalued compared to their American peers, UBS strategists Gerry Fowler and Sutanya Chedda write. Investors are buying U.S. AI stocks at high valuations, while leaving European suppliers building AI capacity comparatively unloved, they say. The strategists split the AI supply chain into three tiers. Tier one companies sell directly to so-called hyperscalers, while tiers two and three are at steps removed from hyperscaler spending. Companies across all three tiers will outperform the market, they say. Electricity infrastructure group Prysmian, German industrials giant Siemens and vacuum valves-producer VAT Group are all in different tiers, but will each benefit significantly from AI expansion, the strategists say.

 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10