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Top Market Takeaways

Why AI should still be a focus for investors

PublishedMay 27, 2025

Global Investment Strategist

    Top Market Takeaways

      You may have noticed that artificial intelligence (AI) isn’t dominating headlines as much lately, with uncertainty surrounding tariff and tax policy taking precedence for many investors. Despite the reduced attention, our 2025 Mid-Year Outlook emphasizes that AI remains a transformative force in the technology sector, with spending growth by tech giants expected to increase in 2025.


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      Why is this important? AI continues to enhance productivity and efficiency across various industries, not just within the tech sector. It enables outputs comparable to doctorate-level work at significantly reduced costs. Like past technological revolutions, such as the advent of personal computers and mobile phones, we expect lower costs and better performance to drive widespread AI adoption.

       

      Furthermore, we see AI as a global investment theme. For example, the tech sectors in Europe and China were closing the performance gap with U.S.-based tech companies following the release of ChatGPT in November 2022, prior to recent tariff shocks affecting markets.

       

      Looking ahead, we will continue to focus on global companies across sectors poised to benefit from cost savings and productivity gains driven by AI technology, such as those in the software and financial industries.


      AI is helping to drive tech sector gains across global markets


      Sources: Bloomberg Finance L.P. Data as of May 21, 2025. Note: U.S. tech: Nasdaq 100 Index; China tech: Hang Seng Tech Index; Europe tech: STOXX Tech Index.
      The line chart shows the price return percentages for U.S., China, and Europe tech sectors since the release of Chat GPT in 2022 to May 2025.



      All market and economic data as of 05/22/25 are sourced from Bloomberg Finance L.P. and FactSet unless otherwise stated.


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      Carter Griffin

      Global Investment Strategist

      Carter Griffin, in partnership with asset class leaders and the Chief Investment Officer’s team, is responsible for developing and communicating the firm’s economic and market views and investment strategies to advisors and clients. Prior to joini...

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      Our Top Market Takeaways for May 27th, 2025.

       

      The information presented is not intended to be making value judgments on the preferred outcome of any government decision or political election.

       

      Index definitions:

       

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