-- The artificial intelligence frenzy is nowhere near finished driving global equities to record highs, according to money managers interviewed by Bloomberg News.‘Upflation’ Is the Latest Retail Trend Driving Up Prices for US ConsumersInvestors and market strategists at major firms including BlackRock Inc. and BNP Paribas Asset Management said they expect all things AI to feature among the prominent themes in the second half of the year.While most expect mega-caps such as Nvidia Corp.
For now, investors are betting that firms at the helm of AI are likely to keep surpassing already-high expectations around earnings and market share. They predict sectors including materials, energy and industrials will also benefit.“Nvidia is the company that wins in this space, basically no matter what,” said Saira Malik, chief investment officer at Nuveen Asset Management LLC, which has $1.3 trillion in assets. Her fund counts Nvidia, Apple Inc. and Amazon.com Inc. among its biggest holdings.
“I’m positive on equities overall,” said Sophie Huynh, senior cross-asset strategist at BNP Paribas Asset Management. “We’re in a kind of last mile for global inflation and that should still be positive for equities, both on price-to-earnings multiples and earnings growth.” Still, investors are broadly in agreement that the AI benefit to profits will continue supporting the market, coupled with looming interest rate cuts and a solid economy.