Even as U.S. interest rates are reported to be around 5%, AI-related stocks have been rising, prompting observations that the conventional wisdom that “higher rates mean lower tech stocks” is beginning to change.
An analysis indicates that price movements in AI-related stocks have been driving the market higher despite U.S. interest rates remaining around 5%. Investors are reportedly maintaining their appetite for AI-related stocks, encouraged by the growth potential of AI and progress toward practical implementation.
At the same time, there is a view that individual factors, including the outlook for growth in the AI market, the extent to which companies are advancing their use of AI, earnings and corporate policies, are diverging from one stock to another. The market is closely watching the performance of AI stocks in a high-interest-rate environment.
The focus is expected to shift to trends in demand related to AI, companies’ implementation progress and the sustainability of earnings growth, among other factors, and investor attention may increasingly turn to the market performance of AI stocks.