AI revolution: From expectations to results
Equity markets have absorbed the geopolitical tensions of recent months remarkably well. Despite higher energy prices, rising inflation and increased uncertainty, many equity indices continue to trade close to their record highs. The primary driver remains the resilience of corporate earnings.
This is particularly evident in the United States, where substantial investment in artificial intelligence and digitalisation is increasingly translating into tangible business results. Whereas markets in recent years were largely driven by expectations, investors are now focusing on measurable business performance. This makes earnings quality, pricing power and capital discipline more important than thematic exposure alone.
Although large technology companies continue to lead the market, attractive opportunities are increasingly emerging beyond the established winners. Investors are once again placing greater emphasis on valuations, cash flow generation and the quality of business models.
We continue to view Swiss equities constructively. Many companies benefit from strong market positions, solid balance sheets and globally diversified revenue streams. The current environment therefore favours careful stock selection rather than broad market exposure. Particularly attractive are companies that are able to build competitive advantages through the rapid adoption of AI capabilities.
