UBS has released a research report indicating that 2026 will be another year of robust growth for the AI supply chain. Driven by the continued expansion of capital expenditures from hyperscale cloud providers, the rapid iteration of AI hardware technology, and a tight balance in the component supply chain, the Asian hardware industry is ushering in a new wave of development opportunities. The report forecasts that capital expenditure budgets from the world's top cloud service providers will see a substantial 34% year-over-year increase in 2026, reaching approximately $424 billion. This momentum is primarily fueled by the ongoing expansion of cloud services and internet businesses, with cloud service revenue growth rebounding to over 28%. Concurrently, leading AI model developers like OpenAI and Anthropic are actively investing to enhance model capabilities and maintain a competitive edge against giants such as Alphabet. UBS believes 2026 will present a scenario of co-prosperity for both AI GPUs and custom chips (ASICs). NVIDIA's Blackwell platform (GB200/GB300) will enter a phase of mass delivery in 2026, with an expected annual delivery of approximately 60,000 racks. With the launch of the Rubin platform in the second half of 2026, the market will experience a smooth transition from Blackwell to Rubin. The modular, cable-free compute tray design introduced by Rubin can increase assembly and maintenance speed by 18 times. UBS points to an uneven distribution of growth红利 across the industry chain's upstream and downstream. On one hand, the total market size for rack power supplies, thermal solutions, and PCBs/substrates is expected to continue expanding. On the other hand, tight supply for various raw materials, especially memory, has created a "seller's market" for components, granting them stronger pricing power. UBS maintains that the key drivers for stock prices in 2026 will remain sales and earnings growth, rather than further valuation expansion. The firm continues to see the best opportunities in suppliers that can fully benefit from the ramp-up of AI servers and enhance per-unit value or value-added features. Its favored stocks include server ODM manufacturers and component suppliers, as well as Largan Precision, which benefits from specification upgrades in foldable screens and variable aperture within the lens sector.
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