The global technology infrastructure has been under strain due to the increasing digitization of the economy and the emergence of several powerful innovations such as smart cars, the Internet of Things and the Metaverse should only exacerbate latency and bottleneck issues.

To support the artificial intelligence, real-time and 3D requirements of this new generation of applications, a multi-year investment cycle in cloud, edge computing and 5G is on its way.

As an illustration, Intel stated that the Metaverse will require 1,000x more computing power than today’s digital applications.

As the fourth generation of cellular networks allowed business models like Uber or Airbnb to thrive and spread globally, an enhanced tech infrastructure will enable disruptive applications such as smart agriculture and fully automated manufacturing and will give rise to a new breed of successful companies providing, for example, an Augmented Reality experience or a service of self-driving taxis.

Longer term, space-based connectivity should be another major driver and bring ubiquitous high-speed data in regions where connectivity has historically been limited or impossible.

Tech infrastructure vendors (semiconductors, software) will obviously benefit from this upcoming upgrade cycle that will put data and AI processing closer to end users in order to reduce latency.

Industrial and consumer companies should also have the opportunity to leverage their installed base of products (cars, industrial machines…) to offer a wide range of connected digital services and over-the-air options through subscription-based models.

INSIGHTS

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Semiconductor stocks have suffered an across-the-board selling in recent months thanks to the rapid deterioration of several end-markets (PC, smartphones…) and new export controls imposed by the US government on chips and equipment shipped to China. But this “implosion” could also create buying opportunities as some end-markets and, more specifically, the data center one enjoys secular…

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Smart Connectivity/Digital Security: When Networking And Cybersecurity Converge

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Product Details

NAV & Performance

UBS

ISIN

CH0473585260

Currency

USD

Type

Active Equity

Issuer / Rating

UBS / S&P A+

Inception Date

04.11.2019

Liquidity

Daily