Artificial intelligence (AI) is now shaping capital allocation decisions across portfolios. But a debate has intensified: is AI a once-in-a-generation structural investment opportunity, or are investors walking into another dotcom-style bubble?
Client portfolios are increasingly exposed to AI and fears of a speculative bubble have not disappeared. Morningstar Wealth associate portfolio manager Nicolo Bragazza says the current AI capex cycle mirrors the dotcom era in terms of "strong investor interest for new technologies and expectations of large-scale economic benefits". However, he stresses that today's AI leaders are very different beasts. "The fact that the hyperscalers are companies with low debt, healthy balance sheets and strong profitability represents one of the main differences and a reason for the perceived lower ...
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