AI reshapes global investment flows and market performance

Artificial intelligence is redefining where capital moves and how markets generate returns. BlackRock chief investment strategist Bruno Rovelli said AI is “the main engine” of a new economy that can push per‑capita growth beyond the historical 2 % trend, while creating “rotating scarcities” in semiconductors, memory, energy and network infrastructure. The surge in data‑center power demand is reshaping electricity generation and transmission, and geopolitical tensions are prompting a regionalisation of supply chains.

Economist Ruchir Sharma notes that countries with strong AI ecosystems are pulling ahead on stock‑market returns. The United States and China benefit from established AI models, while Taiwan and South Korea leverage their semiconductor dominance. Japan, Malaysia, Singapore, Mexico, Vietnam and Thailand also gain from roles in tech supply chains. In contrast, large parts of Europe, as well as India and the Philippines, are seeing investment outflows and weaker market performance due to limited AI involvement.