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‘Too early to leave the party’: fund managers say AI stock boom still has room to run
Bubble fears are mounting as Nvidia and the ‘Magnificent Seven’ dominate index gains, but market bulls are betting the rally still has legs
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The ambitious spending plans of artificial intelligence developers coupled with rapid user adoption indicate the global rally in their stocks will persist despite bubble concerns, fund managers at Fidelity International and Allianz Global Investors said.
The recent downturn in global semiconductor stocks, ahead of Nvidia’s closely watched earnings later this week, was likely to be temporary, according to Joseph Zhang, portfolio manager at Fidelity International.
Unless AI capital spending or usage slowed, he said he expected a rebound following such a correction.
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“It’s still in the early stage of the party,” said Zhang, who co-manages more than US$10 billion in assets at Fidelity. “It would be wrong to jump off the party too early.”
While bubble concerns have gripped markets as investors such as SoftBank Group and Peter Thiel cut their exposure, the view of fund managers suggested that the bulls remained undeterred.
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Heavyweight commitments such as Jeff Bezos’ new AI venture also helped, analysts said. Supporters saw the boom as a once‑in‑a‑generation tech revolution, which made it harder to dismiss as just another stock trend.
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