Shanti Kelemen, Co-Chief Investment Officer at 7IM, suggests that the real rewards from artificial intelligence adoption by 2026 will extend beyond the traditional tech giants. In an interview with Bloomberg Technology, Kelemen outlined a nuanced outlook, emphasizing that while AI's impact is undeniable, the immediate future for tech stocks faces high expectations.
Tech Valuations and AI Realities
Kelemen noted that despite Nvidia's critical role in AI infrastructure, its current high valuation means only exceptional earnings will drive further stock movement. This sentiment applies broadly across the technology sector, where elevated valuations demand consistent, robust performance.
She highlighted an "indiscriminate" sell-off in AI-related software, indicating investor uncertainty about long-term winners. While AI promises dramatic cost reductions and efficiency gains for software companies, successful implementation remains a significant challenge, and not every firm will be able to execute effectively.
Non-Tech: AI's Next Frontier
The true opportunity for AI adoption, according to Kelemen, lies in its integration into industries outside of core technology. Sectors like retail, wealth management, banking, and finance, which currently have lower valuations, stand to gain substantially.
Companies in these areas that successfully leverage AI to streamline operations, enhance customer experience, or improve compliance will be "rewarded" by the market. This shift suggests a broader, more diversified impact of AI across the economy, moving beyond the initial tech-centric hype.
