Large asset managers look past AI stocks toward government-boosted sectors

The world’s largest investment firms are redirecting attention from artificial intelligence stocks to longer-term opportunities driven by government spending on infrastructure, defense, and other strategic priorities. While Wall Street debates the sustainability of AI-driven stock gains, major global investors are looking beyond the AI boom toward long-term government spending trends. These spending patterns, driven by geopolitical, technological, and demographic pressures, are expected to reshape markets in the coming years.