The Swiss bank noted that while the S&P 500 is expected to see further gains, its reliance on a few AI winners has led to dangerously concentrated portfolios. UBS sees fresh opportunities in European equities, which are poised for their strongest Q2 profit growth in four years, and Japanese equities, where Q2 operating profits are up over 20% year-on-year. The bank also remains constructive on mainland Chinese A-shares and has upgraded India to attractive, driven by the Asia-Pacific region's AI hardware supply chain and overall earnings growth forecasts of 72% this year and 20% next.