One signal

AI investment may be moving from a rush to build towards a harder test: whether the infrastructure can earn enough to justify its cost. Jared Gross, head of institutional portfolio strategy at JPMorgan Asset Management, says investors should weigh concentration in AI-related assets and consider diversification, including defensive holdings.

Gross estimates roughly $5 trillion will go towards AI’s physical infrastructure over the next five years. That is his outlook, not a settled forecast, but his practical point is clear: more data-centre capacity will need durable revenue to pay for it. The picks-and-shovels trade has had its moment in the sun; the bill is arriving.

Discuss: As AI infrastructure spending grows, should investors prioritise exposure to the companies building it, or diversify against the risk that the returns disappoint?

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