ÃÛ¶¹ÊÓƵ

CIO expects power and resources to continue to benefit from surging electricity demand. And longevity is supported by demographic shifts and rapid innovation.

Trade, fiscal, and economic growth uncertainties may drive summer volatility.

• Trade uncertainty remains elevated, with open questions about US sectoral tariffs and legal challenges to them.
• US fiscal concerns are elevated following the passage of the One Big Beautiful Bill Act.
• Weaker US labor reports may signal a slower GDP growth outlook for the US in the second half of the year.

But AI, power and resources, and longevity should continue to drive long-term returns.

• We expect global AI spending to hit USD 375bn this year. For 2026, we anticipate another 33% growth to USD 500bn.
• Power and resources companies should benefit from accelerating global electricity demand and over USD 3tr in annual investment expected by 2030.
• The longevity market appears poised to capture a growing share of global profits as populations age.

Investors should focus on both leaders and laggards to capture durable and opportunistic growth.

• Investors should seek a more balanced and diversified positioning across the AI value chain, including exposure to AI laggards such as internet and software companies, and China’s tech sector.
• Within power and resources, we like the electrification value chain for its exposure to growing electricity demand, data center capex, and power grid upgrades.
• In longevity, we prefer select pharma, medtech, and health-care service providers, and select companies in nutrition and wellness.

Did you know?

• Accounting firm EY projects that Europe will have more than 50 million electric vehicles (EVs) by 2030, 15% of the total vehicle stock.
• US and European firms lead in metabolic disease innovation, with the health care and wellness sectors benefiting from rising life expectancies and demographic shifts.

Investment view

Investors should consider diversified exposure to innovation leaders in AI, power infrastructure, and longevity. We see value in select technology, utilities, and health-care stocks positioned to benefit from durable, secular growth trends.

Original report -