Top of the Morning: CIO Strategy Snapshot - Sustainability of the AI trade

UBS sees the AI capex story as intact but facing a growth-rate "reassessment," while higher rates reflect economic strength, not weakness.

• AI selloff hits hard: Semiconductor index (SOX) fell for eight straight sessions through Friday, its longest losing streak since 2008, down 11.5% on the week; some AI stock baskets dropped ~15%.
• Credit spreads widen: Neocloud/data-center issuer spreads rose ~80bps over four-five months, from ~120bps to over 200bps, fueling doubts about revenue covering capex.

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