Investors Should Back the AI Maximalists
Polar Capital is bullish on AI and believes that the sector is far from being a bubble.
Britain's investment establishment thinks the US market, particularly the technology-centric "Magnificent Seven" stocks, are an investment bubble destined to implode as the "hype" surrounding AI dissolves.
However, in the US, they think differently. According to veteran strategist Ed Yardeni, the Magnificent Seven's market share of the S&P 500 has doubled to 32% since the end of 2022, while its share of corporate earnings has risen from 13% to 23%.
Investors should back the AI maximalists.
Author's summary: Polar Capital is optimistic about AI.