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AI Market Shift Ahead: Investors Urged to Be Cautious

12/25/2025

Summary

Story summary

The AI market is set to change in 2026 after a volatile last quarter of 2025.
Stephen Yiu, CIO at Blue Whale Growth Fund, says investors must differentiate viable businesses from those lacking earnings.
He identifies groups: startups, listed AI spenders, and AI infrastructure firms.
Startups drew $176.5 billion in venture capital, but firms without earnings face risks.
Barclays' Julien Lafargue warns that investor optimism may be unwarranted in sectors.

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Story summary

The AI market is set to change in 2026 after a volatile last quarter of 2025.
Stephen Yiu, CIO at Blue Whale Growth Fund, says investors must differentiate viable businesses from those lacking earnings.
He identifies groups: startups, listed AI spenders, and AI infrastructure firms.
Startups drew $176.5 billion in venture capital, but firms without earnings face risks.
Barclays' Julien Lafargue warns that investor optimism may be unwarranted in sectors.