Invest: Deutsche Bank expert Ulrich Stephan: "AI is a boom and not a bubble"

Deutsche Bank expert Ulrich Stephan predicts a new phase of gains for stock markets in the current quarter, according to his insights in the Handelsblatt Invest podcast. The main drivers of this expected growth, according to Stephan, are strong corporate earnings, both in the United States and Europe. Analysts estimate that S&P 500 company profits will increase by more than 30 percent compared to last year, while profits for companies in the Stoxx Europe 600 are expected to rise by over 20 percent.

Stephan emphasizes that such impressive results are reminiscent of the market responses observed after crises. He highlights the continuous boom in Artificial Intelligence (AI) as the key factor fueling this growth. Despite growing concerns about overestimations, Stephan maintains that this upswing is intact and robust. He expects companies to continue investing heavily in AI throughout the next year, which he believes will further boost profits and, consequently, stock prices.

Stephan also shares his thoughts on which industries within the DAX are most attractive and his concerns about the rapidly increasing bond yields in France and the United States.