UBS analysts have concluded that U.S. AI stocks present a more lucrative risk-reward profile compared to counterparts in China. They cite key advantages including vast monetization opportunities, strong cash flow generation, and a larger addressable market.

The analysis also highlights U.S. firms’ robust capital expenditure and R&D spending, with major players expected to allocate around $302 billion in capex by 2025—six times more than Chinese firms.

This competitive edge positions U.S. companies to dominate the AI landscape, making now the ideal time for investors to pivot their focus towards these stocks.