UBS analysts suggest taking advantage of market dips in the technology sector, specifically in artificial intelligence stocks within the semiconductor and software segments. They believe that the growth potential of AI remains strong and advise investors to focus on industry fundamentals.

The recommended strategy is to buy high-quality AI stocks. Recent developments in the AI industry demonstrate a strong demand for AI technology and its supply chain, with major companies making significant investments. Meta has announced plans for a large AI data center in Louisiana, capable of accommodating billions in AI chips. OpenAI has also introduced a more advanced large language model, and xAI, led by Elon Musk, has successfully raised $6 billion in equity funding.

The latest earnings reports from tech companies indicate positive industry fundamentals, with strong capital expenditure commitments and improving AI monetization. The analysts prefer semiconductors and software, while advising caution when it comes to traditional tech sectors like smartphones, PCs, and consumer electronics.