UBS Wealth Management Asia-Pacific Investment Director's Office has released a report stating that despite the recent volatility in tech stocks, structural opportunities have been identified in many quality tech sectors. Investors may consider establishing a balanced investment in the global tech sector, with a slight bias towards internet and semiconductor companies. Investors may also consider looking outside the US for ways to capture the growth of artificial intelligence, including Chinese tech giants, which may also provide some defensive investments in the current situation. UBS Wealth Management points out that the fundamentals of tech stocks remain strong, with valuations now relatively low, and tech companies reporting mixed results in the second quarter suggesting a normalization of growth. Taking a step back, the overall fundamentals remain quite strong, with global tech earnings expected to grow by about 20-25% in the second quarter. The bank believes that this normalization will continue to mean sustained earnings growth of 15-20% over the next 6 quarters. Meanwhile, AI spending appears to be resilient, with large tech companies' 2024 capital expenditure guidance raised to $211 billion following the second quarter results, up from $202 billion following the first quarter results. Global tech stock valuations have fallen to around 22 times earnings per share for 2025. UBS Wealth Management states that the ongoing adjustment around tech stocks appears similar to the nearly 15% correction in tech stocks in the third quarter of 2011. This correction followed a decade of strong structural performance in the tech sector, but in reality, it did not end until the fourth quarter of 2021. In the tech sector, the bank is bullish on companies with strong balance sheets and a track record of profit growth, as well as companies influenced by structural growth drivers. In terms of AI opportunities, the bank continues to favor the support layer of the AI value chain (benefiting from significant investments in AI capabilities) and vertically integrated large enterprises.