The AI Investment Shift: Identifying the Next Wave of Leaders

The artificial intelligence landscape is entering a new phase of maturation. According to insights shared by Raisah Rasid, Global Market Strategist at JPMorgan Asset Management, market attention is gradually shifting from foundational infrastructure and model development toward tangible, real-world applications.

Beyond Hyperscalers: The Broadening Profit Pool

Rasid noted that the AI story is far from over, with adoption accelerating rapidly, particularly in generative AI. However, a significant transition is underway: the drivers of earnings growth are expanding beyond a handful of tech giants into wider segments of the value chain.

This diffusion is notably visible in the hardware sector, where profitability has been a key contributor to returns in major markets. This trend underscores the progression of AI from cloud-based training to edge deployment, and from pure software algorithms to integrated physical systems.

Spotlight on Robotics and Autonomous Driving

Among various emerging applications, the report highlights two sectors with substantial potential:

  • Robotics: Leveraging AI for perception and decision-making, poised to transform automation in manufacturing, logistics, and service industries.
  • Autonomous Driving: As a comprehensive embodiment of AI capabilities—spanning sensing, planning, and control—this field is drawing significant investment toward commercialization and scale.

Both domains share a critical trait: they deeply integrate AI to translate digital intelligence into tangible productivity or services in the physical world.

Market Outlook: A More Measured Pace Ahead

While the long-term trajectory remains positive, the report advises a measured view on near-term market performance. For instance, the strong rally seen in South Korea's KOSPI index in the first half, driven by AI hardware enthusiasm, is unlikely to be fully repeated in the latter part of the year.

Rasid suggests growth will likely moderate. A key reason is the uncertainty around whether hardware players can sustain robust pricing power as competition intensifies and technology becomes more accessible. This implies investors may need to focus more on technological moats, cost efficiency, and concrete commercialization progress rather than relying solely on thematic momentum.

In summary, JPMorgan's analysis outlines an evolving AI investment roadmap—from concentration to dispersion, from virtual to physical. For investors, aligning with the actual pace of technology deployment and identifying firms with durable competitive advantages in convergent fields like robotics and autonomous driving could be crucial to capturing the next wave of opportunities.