From Morningstar:

Artificial Intelligence (AI) has been a top theme for investors this year, with internet, software and semiconductor chip stocks climbing. Steve Wreford of Lazard Asset Management believes AI has reached its peak in the short term, but sees long-term opportunities in a broader range of AI applications across various industries.

Wreford foresees volatility in the technology sector amid tighter financing and economic recession concerns in Europe, but remains positive on earnings and multiples. He advises caution in selecting parts of the equity market and acknowledges potential for cyclical weakness.

Lazard Global Thematic Focus Fund is heavily invested in industrials, particularly in “smart capex” focused on higher capital expenditure and smart technology integration. Despite near-term pressures, Wreford sees industrial companies as having strong long-term potential.

Beyond AI, Wreford recommends themes such as electric vehicles and common component manufacturers, as well as cautioning against overly conservative investment strategies. He emphasizes the importance of positioning for long-term themes amidst cyclical weakness as a sound investment strategy.



Read more: Thematic Investing in 2024: AI, Sure, But What Else?