What's Attractive Beyond AI Leaders

The report advocates for diversifying away from dominant US AI names into international AI infrastructure, defensive healthcare, and rate-beneficiary financials. It warns of 20% downside for low-quality tech if rates remain high while identifying defense as a key valuation recovery play.

Key Takeaways

• 1.Investors should diversify beyond US AI hyperscalers into international AI infrastructure, specifically in Asia and Taiwan where supply tightness persists.
• 2.If interest rates remain high, 'low-quality' stocks and non-profitable, non-secular tech face significant relative downside risk (>20%).
• 3.Healthcare and Ex-US Financials (particularly European and Greek banks) serve as strong diversifiers with low or negative correlation to the AI complex.

Table of Contents

• There is Value in Owning AI Abroad
• Which Equities Will Higher Rates Break?
• Healthcare is an AI-Uncorrelated Compounder
• Ex-US Financials are an Attractive Diversifier
• Is Defense Making a Comeback?
• Low Momo/Dual Binaries Look Appealing into Potential Inflection

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