Dah Sing Bank: U.S. stocks are expected to continue benefiting from developments related to artificial intelligence in the medium to long term, with a positive outlook on industrial stocks

According to the Zhitong Finance APP, recently, Dah Sing Bank's Economic Research and Investment Strategy Department published a strategy for the US stock market. The bank pointed out that with the deadline for tariffs approaching and the trade outlook highly uncertain, coupled with the delayed impact of tariffs on the economy and inflation, there are signs of weakening in certain segments of the US economy, which may bring volatility to US stocks in the short term. Under the competition of artificial intelligence in China, whether leading technology stocks can continue to perform better than market expectations may be one of the key factors influencing the direction of US stocks. The US is expected to maintain its dominant position in scientific research, and the medium to long-term outlook for US stocks is likely to benefit from developments related to artificial intelligence. Increased investment in artificial intelligence and energy infrastructure, along with NATO member countries increasing military spending, leads Dah Sing Bank to maintain a positive outlook on industrial stocks.

Dah Sing Bank expressed optimism about the information technology sector, noting that Trump plans to impose tariffs on goods such as semiconductors, and the competition from low-cost artificial intelligence in China is expected to continue to cause fluctuations in the market for US artificial intelligence-related stocks in the short term. However, demand for artificial intelligence chips remains strong, US semiconductor manufacturers continue to lead in technology, and major chip manufacturers are expected to obtain export licenses to resume sales of lower-specification artificial intelligence chips to China, which may continue to benefit the profit outlook for related semiconductor and hardware manufacturers. The US is expected to maintain its leading position in the development of artificial intelligence, semiconductors, and data computing power.

Dah Sing Bank pointed out a positive outlook for the communications services sector, as the profit outlook for major entertainment stocks benefits from the growth of streaming media businesses and theme parks. Media stocks have performed strongly, benefiting from the development of artificial intelligence and growth in advertising revenue, although leading media stocks may be affected in the short term by EU antitrust reviews. The performance of major telecommunications companies is dragged down by major shareholders reducing their holdings and weak prospects for broadband services.

However, Dah Sing Bank has a pessimistic view of the healthcare sector, as the Trump administration plans to impose tariffs on pharmaceuticals, hoping to bring pharmaceutical manufacturing back to the US while urging pharmaceutical companies to align US drug prices with those of other countries, which may bring significant uncertainty to the pharmaceutical industry's outlook. The US Secretary of Health and Human Services has implemented several measures that restrict vaccine approvals, which may limit the performance of vaccine-related stocks