Markets with Madison: Tech giants go all in on AI, BlackRock’s picks

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Meta, Microsoft, Amazon and Google are cutting thousands of jobs and halting expansion plans to instead bet on the future of artificial intelligence (AI).

The potential boost to their revenue by selling or integrating AI services like ChatGPT with existing services such as Google search or Microsoft’s Azure programme “could be significant”, Jarden global equity analyst Jeremy Ward told Markets with Madison.

“The jump in technology was done inside of Google and they held onto it for a while. They’re now playing catch up.” Ward said.

“Microsoft has taken this and really run with it.”

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The major technology stocks impressed the market with first quarter results showing single digit revenue growth, after a period of aggressively rationalising costs, he said.

BlackRock Australasia remained cautious on the outlook for equities despite a surprisingly positive first quarter, head of multi-asset portfolio solutions and ASB portfolio manager David Griffith said on Markets with Madison.

Griffith seemed most excited by opportunities arising in the fixed income market as the inflation picture became clearer.

“We do have this view at BlackRock, we think that inflation may be sticky.

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“We think ultimately they’re [central banks] going to need to live with a certain level of inflation and potentially not get inflation all the way back down to their targets.”

Hear more about BlackRock’s fixed income strategy and what other assets it’s picking to diversify client portfolios on today’s episode of Markets with Madison.

Get investment analysis and insights from the experts on Markets with Madison every Monday and Friday on the NZ Herald.

Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.

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