AI TRENDS | UBS CEO Sergio Ermotti: U.S. Midterms Could Slow AI Infrastructure Buildout

UBS Group CEO Sergio Ermotti said a Democratic sweep in the U.S. midterm elections could slow the pace of AI computing infrastructure construction. According to Sina Finance, he said investors were justified in questioning how much value the current AI cycle would create and how quickly its benefits would materialize. Ermotti described AI as a strong medium- to long-term growth engine, but said it could remain uncertain in the short term and bring potential volatility to financial markets. Candidates favoring stricter AI regulation won key congressional races, adding to concerns about the growth outlook for chipmakers and data center suppliers. Those concerns helped drive the biggest decline in U.S. technology stocks since 2020, amid weeks of investor doubts about returns on the sector’s large investments.