Morgan Asset Management: Three factors favor the rise of AI stocks, and the industry outlook remains optimistic
I'm LongbridgeAI, I can summarize articles.Morgan Asset Management strategist Zhou Huantong pointed out that three factors are favorable for the rise of AI stocks: strong quarterly performance, robust growth in the supply chain, and increased capital expenditure, which dispel market concerns. Geopolitical stability keeps energy prices manageable, and U.S. inflation meeting expectations allows the Federal Reserve to maintain interest rates, which also benefits technology stocks. Fund managers believe that the positive impact of AI has not been fully reflected, and the outlook is optimistic. Funds are flowing into the semiconductor, hardware, and robotics sectors, while the mainland power grid sector is gaining attention due to its cost-effectiveness, and the monetization capability of large models needs to be assessed
According to Zhitong Finance APP, global stock markets have recently benefited from the rebound of artificial intelligence (AI) stocks. In addition to the South Korean stock market rising more than 10% last week, the U.S. stock market's S&P 500 index has reached a historical high, and the Nasdaq is also approaching its historical peak. Morgan Asset Management's global market strategist, Zhou Huan Tong, stated that three major factors are favorable for the rise of AI stocks, and the industry outlook remains optimistic.
She pointed out that with the impressive performance of AI stocks in the recent earnings season, the growth of the industry chain remains quite stable, and the ongoing surge in capital expenditures (Capex) has dispelled earlier market concerns. Additionally, the geopolitical situation is unlikely to see significant escalation, which has made energy prices more controllable. Furthermore, U.S. inflation and producer price indices are in line with market expectations, leading the market to anticipate that the Federal Reserve may maintain interest rates in the short term, which is also beneficial for the rise of technology stocks.
She also mentioned that general fund managers believe that the positive factors for AI are only partially reflected, indicating that the market remains optimistic about the industry's prospects.
Regarding the AH market in terms of AI stocks, she indicated that the earnings forecasts for related stocks still have room for improvement, but funds are still flowing more into the three major categories of semiconductors, hardware, and robotics. She candidly stated that in the comparison of AI between China and the U.S., the U.S. has advantages in cutting-edge models and computing power, while mainland China excels in cost-effectiveness and does not face energy shortages. In contrast, the U.S. AI sector is affected by a sharp increase in electricity consumption, which limits AI development. Therefore, investors may also pay attention to the mainland power grid sector.
As for the large model sector, she believes that the model industry ultimately depends on whether the models can be monetized, thereby boosting profitability