Portfolio Manager and Technology Analyst
Get the latest insights
Subscribe to our newsletter for investment updates and expert analysis.
• Insight
AI investment should broaden beyond data centers
Investor sentiment toward artificial intelligence has become increasingly focused on the extraordinary capital required to build the infrastructure underpinning the AI revolution. Headlines are dominated by hyperscaler spending plans expected to run into the trillions of dollars over the coming years.
Authors
Analyst
Yet this intense focus on costs and capital spending risks obscures a more important development: AI is already generating meaningful business results. Strong growth in cloud revenues and expanding profit margins indicate that investments made by hyperscalers are beginning to generate returns. At the same time, AI startups are scaling rapidly, while enterprises are deploying AI tools to improve productivity, automate workflows and enhance decision-making.
The next phase of AI investing may be less about building infrastructure and more about identifying where adoption is creating durable competitive advantages. 1
Among the most promising areas is cybersecurity, where AI is helping organizations detect threats faster while also strengthening defenses against increasingly sophisticated AI-driven attacks. Healthcare is another emerging beneficiary, with applications ranging from administrative automation to clinical diagnostics, and drug discovery. Meanwhile, advances in robotics and autonomous vehicles demonstrate AI is making inroads into the physical economy.
Read the full article to explore where the next wave of AI-driven value creation may emerge and why investors may need to look beyond infrastructure beneficiaries to capture the opportunities ahead.
Footnote
1Investing in thematic strategies such as artificial intelligence involves risks, including technology sector concentration, valuation volatility, rapid technological obsolescence, regulatory uncertainty, and the risk of capital loss. Past performance and market trends are not reliable indicators of future results.
Don’t miss out
Important information
THIS WEBSITE IS SOLELY INTENDED FOR PROFESSIONAL INVESTORS, WHICH HAS THE MEANING ASCRIBED TO IT IN THE SECURITIES AND FUTURES ORDINANCE (CAP. 571 OF THE LAWS OF HONG KONG) AND ITS SUBSIDIARY LEGISLATION. Investment involves risks. Past performance is not indicative of future performance. The information contained in this website is provided for reference only and does not constitute investment advice or an offer or solicitation to buy or sell in any securities or to adopt any investment strategy. Investors should not base their investment decisions solely on the information provided on this website and are advised to seek independent advice (including advice on tax implications) before making any investment decisions. Investors should ensure they fully understand the risks associated with the investment products and should also consider their own investment objectives and risk tolerance level. The investment decision is yours. You should not invest unless the intermediary who sells you the investment products has advised you that it is suitable for you and has explained how it is consistent with your investment objectives. Please refer to the relevant offering documents or other legal documents for further details including the risk factors. This website is published by Robeco Hong Kong Limited which is regulated by the Hong Kong Securities and Futures Commission (“SFC”) (CE No. APU851). This website has not been reviewed by the SFC. No assurance can be given that the investment objective of any investment products will be achieved. No representation or promise as to the performance of any investment products or the return on an investment is made. The value of investments may fluctuate. Past performance, projections, or forecasts included in this website should not be regarded as guarantees or indications of future performance, and no express or implied warranty is provided. The contents of this website are based on sources believed to be reliable, but due to the nature of information delivery technology and the necessity of using multiple data sources, including third party content, their accuracy is not guaranteed. The opinions expressed are as of the date shown above and may change as market conditions evolve, and are subject to change without notice. These opinions may differ from those of other Robeco investment professionals. Robeco accepts no liability for any direct, indirect, or consequential loss arising from the use of this material or any comments, opinions, or estimates contained herein. Robeco has no duty to update this website or any website content. Materials on this website may not be reproduced, distributed, or published without prior written permission from Robeco. Unless otherwise specified, Source: Robeco.
