MSCI: AI Outperformed Geopolitical Factors to Drive Market Gains in the First Half of the Year

Glonghui, July 31 | MSCI Chief Research Officer Ashley Lester pointed out that in the first half of this year, the market was largely driven by AI development, and currently AI dominates almost all investment themes. However, the profit growth supporting this round of the rising market mainly comes from a few high-beta semiconductor and AI infrastructure leading companies. He noted that for the rally to continue in the second half of the year, profit growth must become broader and more sustained in coverage, in order to outperform the bond market, which is still pricing in the opposite risk expectations. Geopolitical factors must also continue to play a secondary role.