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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuThe artificial intelligence trade has been under scrutiny due to rising credit concerns in the space, but Trivariate Research founder Adam Parker is still bullish. “We can’t be sure how long the cycle will last, but most experts think this is a 10-year cycle, with datacenter build outs likely taking longer than that in some cases. Even if this ends up being a 7-8 year investment cycle, we are only halfway into it now, and we highly doubt selling the exposed securities this far in advance is prudent,” he wrote to clients. Parker noted that, while the AI trade began in earnest in early 2023, increased productivity from the technology hasn’t fully trickled into earnings yet. “Only 15% of companies were discussing any of these issues at the beginning of the year, and still less than 50% of the top 500 US equities are discussing any of them today. Cost-related productivity is IN FRONT of us, not behind us,” he said. AI-linked stocks have propelled the bull market to new heights in recent years. Since May 2023, the S & P 500 is up 84%, with the tech sector surging a whopping 147% in that time. Semiconductor stocks have quadrupled since then, with the VanEck Semiconductor ETF (SMH) up 335% — and Nvidia soaring 647%. October 2026 has been a different story, however. While the S & P 500 is up slightly this month, the SMH has tumbled 11% and the S & P 500 tech sector has fallen 4.8% as borrowing fears lead investors to pare exposure to AI names. Nvidia has fallen more than 5% this month. Yet Parker thinks the best is yet to come from the AI trade. “A legitimate bull case for the S & P500 is that earnings can stay above trend because of productivity on labor that is still not yet in the numbers,” he said.Read More