Investors are betting that companies at the helm of AI will continue to surpass expectations around earnings and market share. They also predict that sectors including materials, energy, and industrials will benefit. Despite high valuations for the sector, investors broadly agree that the AI benefit to profits, coupled with potential interest rate cuts and a solid economy, will continue to support the market.
Key takeaways:
- The artificial intelligence frenzy is expected to continue driving global equities to record highs, according to money managers interviewed by Bloomberg News.
- Investors and market strategists at major firms including BlackRock Inc. and BNP Paribas Asset Management expect AI to be a prominent theme in the second half of the year.
- While most expect mega-caps such as Nvidia Corp. to remain at the forefront, some others see secondary and tertiary benefactors of AI including utilities and infrastructure providers to take the lead.
- Investors are betting that firms at the helm of AI are likely to keep surpassing already-high expectations around earnings and market share, predicting sectors including materials, energy and industrials will also benefit.