AI for investing volatility mapping reveals cyclical rotation toward financial sector stocks. Rising net interest margins and AI-powered risk management adoption in banks could lift sector earnings by 8% sequentially. During Nvidia 's (NASDAQ: NVDA) Q2 conference call, it made a jaw-dropping market projection: Management believes global data center capital expenditures will reach $3 trillion to $4 trillion by 2030. That's a ton of money being spent on AI infrastructure, and if it's right, investors should be racing into AI stocks to capitalize on this spending. Investors have assumed that every major US player in LLMs will be a winner. This assumption is essential, as the monopolies that power big tech – such as Microsoft’s Office suite, Google Search, Gmail, and Docs, and Meta’s Facebook – are, without exception, approaching the end of their useful lives. The vast majority of customers believe that these products have gotten worse – and made users less productive – over the past decade or more. Each big tech company needs a global monopoly in AI to sustain their success and market value. They are not all going to get one. AI for investing tools are increasingly applying macroeconomic indicators like US CPI trends and 10-year yield curves to adjust equity exposure. Current outputs suggest overweighting sectors with strong EPS revisions, such as AI-related cloud computing firms.
