UBS has warned that global markets could face heightened volatility next year, highlighting risks from weaker-than-expected artificial intelligence revenue to geopolitical tensions. Despite these concerns, the Swiss investment bank remains optimistic about Chinese technology stocks and gold.

The bank outlined five key risks for 2026: economic slowdown, a resurgence of inflation, rising government debt, renewed U.S.-China conflicts, and underwhelming returns from AI following three years of heavy investment.