Europe, U.K. Seen as Alternatives to AI Concentration Risk
Dow Jones10-19 23:34
1534 GMT - Investors worried about the artificial-intelligence boom running out of steam should look to European and U.K. stocks, Panmure Liberum's Joachim Klement and Francisca Reis write. AI-related stocks need to perform for 2027 earnings-per-share growth targets in the U.S. to be met, the strategists write. Consensus estimates put EPS growth for S&P 500 stocks next year at 29%--5.1 percentage points of which is made up by Nvidia, they say. Close to 44% of the earnings growth is expected to come from technology stocks, they say. Indexes in Europe and the U.K. are much less concentrated, they add.
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