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Stock impact report

Market Outlook: AI infrastructure and fintech attract investor interest [BNN Bloomberg (Canada)]

SoFi Technologies, Inc. (SOFI) 
Company Research Source: BNN Bloomberg
One strategist says selective exposure to AI infrastructure and fintech could still offer opportunity as investors rotate between different types of risk. BNN Bloomberg spoke with Drew Pettit, U.S. equity strategist at Citi, about why he favours small- and mid-cap AI enablers, how valuation concerns are weighing on software stocks, and where fintech firms tied to consumer and small-business credit could benefit if liquidity improves. Key Takeaways Small- and mid-cap AI infrastructure companies offer exposure to artificial intelligence at lower valuations than mega-cap peers. Cash flow strength and balance-sheet flexibility are key factors in determining which AI-linked companies can withstand volatility. Fintech firms focused on alternative credit and payments could benefit if consumer liquidity increases. Buy now, pay later providers may continue gaining share as consumers rely more on non-traditional credit. Volatility is concentrated in high-growth innovation stocks, Show less Read more
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