UBS warns AI stocks are overheating as growth expectations collide with history

UBS said the April rally in US equities was a 2.8 standard deviation event over the past 25 years, while its own crowding data shows mega-cap tech stocks remain heavily crowded long positions. The bank's quantitative research found that every one of the Magnificent Seven stocks, excluding Tesla but including Broadcom, registers as an extremely crowded long, as do eight of the 12 largest global semiconductor companies by market capitalisation.