Is the AI trade merely catching its breath—or approaching an inflection point? And as India navigates oil, inflation and shifting global capital flows, where are investors finding the most compelling opportunities? Ahead of the UBS’s Investor Conference, Divya Nagarajan speaks exclusively to Moneycontrol about the big global and domestic forces on her radar—and why, in an increasingly selective market, the old playbook may no longer be enough
That is primarily based on how we view the global AI trade. We are still very positive on it. As long as that holds, we remain constructive on the global macro environment, led by the AI trade.
Our analyst has been continuously pushing out the forecast for when memory prices will peak every quarter, and the current view is that they will peak only in FY28, as bottom-up demand continues to be very robust. There is no major risk to that view right now, except for some concerns on the private credit side. But at this point, those risks do not appear large enough to trigger an inflection.
2) How much room does the AI trade have to run from here?
This is hard to answer, but as long as demand conditions do not change, we remain bullish.