Managers are strategically maintaining AI exposure toward memory and semiconductor supply chains, and rotating toward enterprise adopters while trimming crowded hyperscalers.

Amid headline-grabbing AI funding rounds, managers are focusing on specialist infrastructure and supply-chain bottleneck companies with clear order-book visibility and strong pricing power. These include semiconductors and components.

As markets grapple with the implications of artificial intelligence, the AI frenzy has meant that the six largest companies accounted for more than half of the U.S. market’s return in 2023 and year-to-date (August 2024) they have accounted for nearly half again.

The consensus outlook among analysts today is that tech innovation will rewrite the global productivity index, with AI (artificial intelligence) and automation expected to bring a new wave of industry efficiencies.

China's economy has disappointed most expectations over the past year. China's need to rebalance from investment to consumption is coming when tensions with the U.S. are elevated. This could create continued volatility. We believe China does have the levers to alleviate some key challenges.