As global AI stocks are expected to see earnings growth slow from nearly 100% in 2026 to 30% in 2027 and 22% in 2028, while their valuations remain almost twice as high as those of non-AI stocks, Jefferies’ Global Head of Equity Strategy Chris Wood has urged investors to diversify beyond AI. He argues that rising borrowing costs for companies are at the centre of the spending boom and raise questions about how long the market will continue funding the trade.
In his latest GREED & fear note, he highlights a warning from Jefferies’ global quantitative strategy team: “it has become time to diversify beyond AI.”
