Analysts at UBS downgraded U.S. information technology stocks on Tuesday, even following a market bounce. The Swiss financial institution shifted its view on the sector from attractive to neutral.  

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UBS highlighted three primary justifications for the downgrade, according to CNBC. 

Software Volatility: The bank noted that "software uncertainty could linger," largely due to competitive pressures and new AI tools replacing traditional programs.

Excessive Spending: Massive investments in infrastructure by hyperscalers like Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft Corp. (NASDAQ:MSFT) are raising eyebrows. UBS mentioned that "mixed investor reactions" to high capital costs and mounting debt are creating a significant ...