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The Golden Era of AI Investing Has Likely Peaked

Mon, Jul 6, 2026(90d ago)Business

While artificial intelligence remains a vital long-term pillar for global markets, Saxo Bank’s latest outlook suggests the "easy money" phase of the AI trade has likely come to an end. As valuations climb and the scrutiny on actual returns intensifies, investors can no longer treat AI as a monolithic theme. Instead, experts advise distinguishing between the hardware infrastructure providers, productivity-focused adopters, and cost-efficient deployers. Moving forward, the market will shift its focus from pure excitement and massive capital spending to tangible results, prioritizing companies that can prove sustainable revenue growth and clear profitability.

To navigate this more complex landscape, investors should avoid over-concentration in mega-cap tech stocks by broadening their portfolios with more resilient, defensive assets. Key risks—such as persistent funding costs, pressure from CFOs to prove ROI, and potential plateaus in capital expenditure—make a diversified approach essential. Saxo recommends balancing high-tech exposure with utilities, healthcare, and energy infrastructure, or utilizing equal-weight strategies to mitigate the risks inherent in passive, tech-heavy portfolios. Ultimately, the goal is not to flee from AI, but to strategically manage risk by diversifying across sectors that can thrive under varied economic conditions.

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