With questions swirling around Federal Reserve policy, the state of the economy and the presidential race, at least one thing seems clear on Wall Street: Spending on artificial intelligence remains a central priority.
Companies are pouring tens of billions of dollars into building out AI infrastructure and services, making the beneficiaries – notably Nvidia – close to a sure thing in terms of their growth prospects. The chipmaker’s results next week will provide further clarity on AI demand and could vault the shares back into record territory.
“We’re nowhere near close to finishing the build-out of AI infrastructure, and that gives you a very good line of sight in terms of the growth you can expect over the coming years,” said Erik Swords, lead portfolio manager at Voya Investment Management.
Rather than being in the late innings of this theme, “we’ve barely walked out of the dugout,” Swords said. “So …