Video: Invest in transformational innovation: AI, power and resources, & longevity
Artificial intelligence
The AI rally is entering its fourth year, but the narrative is evolving. We project the total AI addressable market to reach USD 3.1tr by 2030, with a 30% CAGR, but recent profit-taking in technology shares and speculation around a potential deceleration in the AI capex cycle have heightened the risk of single stock concentration.
Looking ahead, incremental AI capex alone may not be sufficient to drive appreciation; investors will likely focus more on monetization. While the area's initial gains thus far have been led by semiconductors, we think the value-creation story is broadening beyond US technology, with opportunities emerging across the enabling (semiconductors, cloud), intelligence (software, algorithms), and application layers.
Power and resources
The intersection of AI-driven demand, energy market disruption, and geopolitical risk is sharpening the focus on energy security and infrastructure resilience. Elevated energy prices reinforce the importance of grid bottlenecks and access to essential materials. We expect capital allocation to remain directed toward power, grid, and critical resources, with the current investment cycle shaped by both structural growth drivers and tactical risk mitigation considerations.
Surging data center demand is continuing to accelerate in-vestment in power and grid infrastructure, with global grid investment projected at USD 500bn in 2026 and annual sector investment reaching USD 3tr by 2030. Opportunities span grid resilience, renewables, nuclear, industrial automation, and critical minerals, with companies at the core of this transition reporting record order backlogs and robust demand.
Longevity
While ongoing geopolitical uncertainty in the Middle East has weighed on investor sentiment in more economically sensitive sectors, health care companies’ revenues tend to be more robust. We think that the diversified supply chains and strict cost controls of health care companies should allow companies to protect profit margins, even in adverse scenarios where energy prices remain high.
Structurally, we think the “longevity” market is set to expand from USD 5.3tr in 2023 to USD 8.0tr by 2030. In our view, the current period stands out for its concentration of clinical milestones and regulatory events, offering potential for outsized returns in select segments. We expect 2026 to be a catalyst-rich year, with multiple late-stage pipeline readouts in obesity, oncology, and medical devices. While the risk of AI-driven disruption is present, the threat to core health care activities remains manageable, and biopharma and medtech are positioned to benefit from productivity gains.
