AI Investing: Momentum Still Building, Not Bursting

This report by Capital Group portfolio manager Chris Buchbinder examines whether current investor enthusiasm signals an AI bubble or an early-stage boom.

• Market position: AI-related investments, now representing about 7% of U.S. GDP, remain supported by cash-rich hyperscalers like Amazon, Microsoft and Alphabet.

• Cycle outlook: Buchbinder compares today’s market to 1998 rather than 2000, suggesting continued upside before potential correction.

• Strategic positioning: He balances exposure to AI leaders with value plays in energy and cable sectors to hedge against a future downturn.

Explore the full report for data-driven insights on how to navigate AI-driven market cycles.