Fidelity Sees Global Funds Rotating From AI Into Value Stocks

Global equities have been led by large technology companies and artificial-intelligence plays, as investors rewarded heavy capital spending and expectations of rapid earnings growth. Fidelity International says that trade is broadening as markets scrutinize whether AI investment can generate sufficient returns. The reassessment matters because it could shift leadership away from a small group of highly valued technology stocks toward financial, consumer and other traditional value sectors.

Fidelity International said the global rotation is accelerating, with economic and corporate fundamentals continuing to support US and European equities while Asian investors increasingly favor non-technology shares. Emerging-market and Asia-Pacific technology stocks are under pressure as valuations adjust and doubts grow over the payoff from AI capital expenditure. Fidelity did not disclose a specific amount of money moving between sectors or identify an exact date when the rotation began.