The artificial intelligence-led rally continues to be one of the biggest drivers of global markets, but investors are now seeing the momentum spread beyond technology stocks. According to Santosh Rao from Manhattan Venture Partners, while concerns over AI-related capital expenditure and supply chain bottlenecks remain, broader participation from sectors such as healthcare, financials and transportation points to a healthier market. At the same time, sticky inflation and resilient economic data have strengthened expectations that the US Federal Reserve could keep interest rates higher for longer, lending support to the dollar while weighing on commodities and emerging markets.
Speaking to ET Now, Rao said the long-term AI growth story remains firmly intact despite supply constraints in certain parts of the semiconductor ecosystem. "AI is still very strong. AI momentum is still strong... overall, the demand for AI will continue. We are still probably in the third or fourth inning of a long, long game here." He added that the rally is becoming more broad-based. "The bigger takeaway from the market is that the market is broadening. AI-enabled stocks are doing well. Healthcare is participating, financials are participating, transportation is participating. Those are good signs that the economy is in good shape," he said.
