Rethinking AI through a capital allocation lens
By Puneet Singh, Head of Cross Asset Quant, Asia Pacific
Enthusiasm around artificial intelligence (AI) continues to lift equity markets to record highs. Yet amid rising concerns over valuations, AI may be more usefully assessed through a capital allocation lens.
At a glance
- AI investment is accelerating rapidly, but investors are increasingly questioning the gap between expectations and real-world outcomes.
- Compute capacity, energy infrastructure, and organizational readiness could become critical constraints on AI adoption and monetization.
- The AI opportunity is global, but differences between US and China ecosystems may create distinct risks and return profiles.
- For investors, a disciplined capital allocation approach may prove more valuable than chasing market momentum.
AI is clearly moving through the hype cycle. Investors, however, are becoming increasingly wary of the gap between expectation and real-world outcomes. Spending on AI is accelerating rapidly, with capex across leading technology firms expected to reach... click
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This article is based on insights shared during Puneet Singh's panel discussion at our 2026 Global Markets Conference Singapore.
For videos and additional perspectives from the 2026 Global Markets Conference, Singapore, visit our Content Hub.
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