Unlike the dotcom peak, when tech-fuelled returns were spilling across industries and markets, today investors are sucking money away from non-AI industries, and from nations peripheral to the AI boom

It’s hard to recall a time when global markets were so obsessed with a single storyline. AI boom is now so powerful and widespread in nature that it is overwhelming all other drivers of returns, and shaping a new AI-based world order.

Relative performance of the world’s major stock markets over the past year can be explained by how much exposure they have to AI. Nations with a large foothold in the “stack” of industries developing AI infra and services are massively outperforming, while those without are lagging by record margins. Winners include US and China, thanks above all to their foundational AI models; Taiwan and South Korea on the strength of chip manufacturers; Japan and Israel on a broad array of AI skills.

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