The next phase of Artificial Intelligence?
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Market Mood
Global equities remain supported by strong growth in the Technology and Communications sectors, particularly among companies benefiting from AI-related investment, though rising competition—such as Google developing its own AI chips—signals a shift in the landscape. Growing concerns around massive datacentre spending, future energy demands, and uncertain returns suggest that smaller and mid-sized firms may increasingly benefit from AI-driven efficiencies. Meanwhile, Chinese tech companies are making progress, adding pressure to the dominant US ecosystem. Given these trends and the continued market concentration in the Magnificent 7, maintaining diversification is key; while these companies still offer attractive growth, international equities currently present better valuations and have outperformed in 2025 amid a weaker US dollar.