American Century: AI Investment Creates Broader Opportunities Beyond Tech
American Century Investments' Q4 outlook indicates artificial intelligence benefits are spreading beyond the technology sector, creating new opportunities in both equity and fixed-income markets.
Kansas City, Mo. – Global growth remains resilient despite inflation, higher energy costs, and geopolitical uncertainty, broadening investment opportunities across both equity and fixed-income markets. This is according to the fourth-quarter investment outlook from American Century Investments.
The global asset manager's investment chiefs note that AI-driven investments are creating continued momentum and opportunities beyond the technology sector. Simultaneously, these investments are reshaping capital markets and bond issuance trends.
"Despite persistent inflation and elevated interest rates, today's markets offer an increasingly broader range of opportunities," said Victor Zhang, senior vice president and chief investment officer of American Century.
Regarding equity markets, Patricia Ribeiro, co-chief investment officer of global equity, sees strength in global corporate performance and earnings trends. "Investment in AI remains an important driver of capital spending and earnings growth across global equity markets," Ribeiro stated. "Other sectors are benefiting from growth drivers beyond AI." She highlighted opportunities in financials, industrials, energy, and emerging markets.
On the fixed-income side, Charles Tan, chief investment officer of fixed income, emphasizes continued business investment and capital demand. "We believe massive hyperscaler debt issuance and AI-related capital spending are reshaping the global investment backdrop," Tan said. "Spending on data centers, infrastructure, and AI capacity is driving robust demand and competition for longer-duration capital."
Tan notes that rising global yields reflect broader structural shifts in capital markets, rather than being solely a U.S. phenomenon. "It's important to note that the U.S. isn't the only country facing higher yields. Across developed markets, similar factors—including elevated inflation and soaring government deficits and debt—are driving global bond yields higher."