Cathay Securities Sees Resilient Economy Sustaining AI-Led Growth

Cathay Securities said stabilizing inflation trends are helping the global economy remain resilient, providing support for risk assets despite lingering uncertainty. Artificial intelligence continues to anchor the global equity outlook, but investors are becoming more selective as attention shifts away from thematic valuations toward earnings delivery, viable business models and the commercial deployment of AI applications.

In its August investment outlook, Cathay Securities said AI-related growth momentum remained intact while capital was beginning to move beyond richly valued AI concept stocks. The brokerage identified healthcare and financial companies with stronger fundamental support as potential beneficiaries of that broadening. No specific allocation amounts or index targets were disclosed, underscoring a shift in August from a concentrated AI trade toward more diversified sector exposure.