AI story could unwind next year and India’s likely to benefit: CLSA

Mumbai: CLSA’s equity strategist said the Artificial Intelligence (AI) story is likely to unwind in the next year due to concerns over returns on the “eyewatering commitments” in the sector. A sell-off in AI stocks is likely to benefit India as investors are expected to reallocate funds from Taiwan and Korea, it said.

“From an evaluation standpoint, it certainly looks as if we are certainly either in or at least approaching bubble territory,” said Alex Redman, chief equity strategist, CLSA, in a news conference. “When you start to get a crack in the whole investment case of the MAG 7 or AI-related plays, the whole market is going to feel the collateral damage.”