UBS forecasts significant growth in AI investments, projecting capital expenditures from the Big 4—Alphabet, Microsoft, Amazon, and Meta—to rise from $224 billion in 2024 to $280 billion in 2025. As AI regulations are expected to increase in the US, China, and Europe, market participants should prepare for heightened volatility and evolving demand dynamics in the sector. Despite a maturing AI rally, investors are advised to adopt nimble strategies to navigate potential uncertainties and capitalize on quality AI stocks.