Renewed Optimism Around AI Might Offset Fed Tightening Worries

Dow Jones11:22

0322 GMT - Renewed optimism around AI has likely helped offset concerns over further monetary tightening, at least temporarily, says James Ooi, Tiger Brokers' chief market strategist, in an email. CoreWeave's earnings results offered some reassurance about the outlook for the AI investment cycle, suggesting that continued demand for compute could support growth opportunities for chipmakers and infrastructure suppliers. Meanwhile, reports that Anthropic's IPO has attracted strong demand offered further encouragement. Despite growing scrutiny of valuations and capital spending, institutional appetite for leading AI companies appears to remain resilient. This may help ease some of the recent pessimism surrounding the AI trade, he adds.

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