Equities

We examine where we currently stand in the artificial intelligence (AI) cycle, how much further the AI boom may run, and why current market weakness could present long-term opportunities.

How do you make renewable power available when the sun isn’t shining or the wind isn’t blowing? Storage may be an important puzzle piece of the answer.

Investing has no perpetual motion machine. Just as energy comes at a cost, growth comes with risk. The AI boom highlights this trade-off: while AI-related stocks are driving returns, future payoffs remain uncertain. Quality investing seeks to maximize growth per unit of risk through disciplined portfolio construction and balance.

This article examines the central paradox of the AI economy: intelligence is becoming dramatically cheaper even as technology companies invest record sums in AI infrastructure. It explores the AI value chain, token economics, the open-versus-closed model debate, and whether soaring usage can offset falling prices as compute supply remains constrained.

In an increasingly deglobalized world, governments are seeking energy and commodity autonomy in the form of domestic supply chains and strategic reserves. What does this mean for the energy transition?

Our Quality Growth team outlines an approach to building resilient portfolios that can also deliver attractive growth. The team seeks to identify companies with superior profitability, predictable earnings growth, and appropriate valuations. They classify quality companies into three categories: Leaders, Defenders, and Opportunistic, while balancing growth and stability.

China’s luxury market is being reshaped: ultra-high-end brands remain resilient, while mid-tier players face pressure from premium and domestic competitors. Consumers are shifting spending toward experiences and local brands, with uneven recovery and opportunities emerging in platforms and adaptable operators.

Portfolio manager Ed Walczak shares his thoughts on his trip to the Berkshire Hathaway annual meeting, his 30 th visit. He focuses on investing versus speculating in today’s AI-obsessed market, and how sticking to a discipline might be harder but more important than ever.

Like oil once powered the industrial era, chips have become a key input powering broad economic activity, with expectations for demand to continue through 2026 and into 2027. In our view, “picks-and-shovels” companies should benefit regardless of which model, hyperscaler, or foundation lab ultimately wins.

Galderma is a pure play dermatology company with steadily growing aesthetics and skin care franchises. Galderma’s Dysport is taking share from Botox, while Nemluvio, its novel itch biologic, is gaining traction. We believe the company may see long term revenue and profit growth ahead. Turns out, demand for better skin is remarkably durable.

The surge in electricity demand exposes aging power networks as the weak link in electrification. Underinvestment, congestion, and climate stress are colliding with a rising share of renewables and power-hungry data centers. This makes grid modernization, storage, and resilience a defining, long-term investment opportunity.

Vontobel’s experts highlight a widening set of opportunities in emerging market equities, spanning consumer-driven growth, industrial capital expenditure, energy investment, and markets undergoing structural reforms that emphasize shareholder value and capital discipline.