CIO sees positive risk-reward in AI due to strong US economic activity and healthy earnings. Tech sector may remain volatile, but reassuring tech results and the emergence of cost-effective AI models like DeepSeek are noted. Expectations for Big 4 tech capex to rise 25% to USD 280bn this year, driven by the pursuit of AGI. AI adoption is growing, projected to hit 9.2% by mid-2025, benefiting cloud growth. Overall S&P 500 growth anticipated to reach 6,600 by year-end. Investment strategies should be active and diversified amidst volatility.
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