With improving macroeconomic conditions and widespread AI adoption across industries, Derwent Investments plans to capitalise on the sector's transformative potential, positioning clients for long-term growth despite geopolitical risks.
SINGAPORE, SINGAPORE / ACCESSWIRE / December 5, 2024 / Singapore-based wealth management concern, Derwent Investments has announced plans to increase its weighting in artificial intelligence (AI) stocks in 2025, citing the sector's strong growth potential amidst improving macroeconomic conditions. Despite on-going geopolitical uncertainties, the firm believes AI-driven innovation will continue to transform industries and deliver substantial long-term value.
"Artificial intelligence will continue to be a cornerstone of technological advancement and we see 2025 as a pivotal year for the sector," said Edward Chandler, Director of Private Equity at Derwent Investments. "Improving economic conditions, supportive governmental policies together with the on-going integration of AI across multiple sectors, create a compelling opportunity for investors."
The firm's decision is based on several key trends:
Macroeconomic tailwinds: Stabilising interest rates and easing inflation pressures are expected to enhance capital flows into technology and innovation-led industries.
Industry adoption: AI applications in healthcare, autonomous vehicles, finance, and cybersecurity are driving demand and revolutionising business operations.
Resilience amid geopolitical risks: While geopolitical tensions remain a factor, particularly those with China, the global race to lead in AI is spurring investment and collaboration across borders.
Derwent Investments also highlighted the importance of disciplined portfolio diversification as the firm identifies AI companies with strong fundamentals, robust R&D pipelines, and scalable business models.
"We believe AI is not only a growth story but also a critical enabler of resilience and efficiency in an evolving global landscape," added Mr. Chandler. "By increasing our exposure to this transformative sector, we aim to position our clients to benefit from its long-term growth potential."
"While we can't rule out pullbacks and consolidations in these stock prices, we're largely of the opinion that these will be short-lived and help to shake out weaker, more speculative hands so investors should be prepared to hold medium to long-term for the best outcomes," Mr. Chandler concluded.
About Derwent Investments
Derwent Investments is a leading investment management firm committed to delivering superior investment results and second-to-none client service. With a team of experienced professionals and a disciplined, research-led approach to investing, the firm provides innovative solutions and opportunities for medium-to-long-term capital growth. Derwent Investments' focus on research-driven investment strategies ensures that clients benefit from the latest market insights and technological advancements.
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Derwent Investments Pte Ltd
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SOURCE: Derwent Investments Pte Ltd
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