The big surprise for the second half could be the AI trade powering higher. Why it wouldn't take much.

HSBC strategists argue that scrutiny around the artificial intelligence trade could be offset by a resurgence in stock valuations this year if AI-related equity prices start to climb again. The outlook is conditional—dependent on valuation recovery rather than changes to fundamentals. Net impact is modest, mainly influencing investor positioning rather than immediately shifting broader market pricing.

Analysis

HSBC strategists argue that scrutiny around the artificial intelligence trade could be offset by a resurgence in stock valuations this year if AI-related equity prices start to climb again. The outlook is conditional—dependent on valuation recovery rather than changes to fundamentals. Net impact is modest, mainly influencing investor positioning rather than immediately shifting broader market pricing.