AI stocks aren't just winning—they're lapping the field.
Since early 2024, the Bloomberg Global AI index is up 118%. Meanwhile, global equities (MSCI World) are up 57%. That's a 61-point gap.
Even emerging markets, which hit near all-time highs with a 70% gain, can't keep pace.
Annualized returns tell the story:
• AI stocks: 38%
• Global equities: 19%
• Emerging markets: 23%
This is classic momentum concentration. A handful of themes—data centers, chips, cloud infrastructure—are absorbing capital at the expense of everything else. When one corner of the market runs this hot for this long, it's worth asking: are we pricing in perfection, or is this the new normal?
History says extreme outperformance eventually mean-reverts. But timing that is the hard part.
Since early 2024, the Bloomberg Global AI index is up 118%. Meanwhile, global equities (MSCI World) are up 57%. That's a 61-point gap.
Even emerging markets, which hit near all-time highs with a 70% gain, can't keep pace.
Annualized returns tell the story:
• AI stocks: 38%
• Global equities: 19%
• Emerging markets: 23%
This is classic momentum concentration. A handful of themes—data centers, chips, cloud infrastructure—are absorbing capital at the expense of everything else. When one corner of the market runs this hot for this long, it's worth asking: are we pricing in perfection, or is this the new normal?
History says extreme outperformance eventually mean-reverts. But timing that is the hard part.
