Morgan Chase: The opportunities for investment in artificial intelligence are not limited to technology giants

On 15 July, Madison Faller, a global investment strategist at the Morgan Chase Private Bank, stated that investors should look beyond the giants of technology to the entire artificial intelligence chain. “The story of artificial intelligence is not confined to a single industry; we are really concerned with capital-intensive assets that cannot be replaced”, she mentioned in particular semiconductors, infrastructure, utilities and industrial blocks. Fuller noted that the strong performance of science and technology companies was fully compatible with the broader market for profit growth. She added that, of the 11 industries covered by the Standard 500 Index, 10 were expected to grow in the current fiscal season. The Morgan Chase team expects that the Standard 500 index will yield a total return of nearly 10 per cent over the next year. They also expect a medium-digit rate of return for large European units. Faller stressed that the banking unit was a notable investment option for the region, given the improvement in fundamentals and the increase in dividends and stock buy-backs. Kim Xian