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By   Jennifer O'Hara Martin
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Global equities: Our view on recent AI-related market developments

AI-related market volatility reinforces the importance of selectivity in global equities.

November 2026, Equity

Markets have been volatile in recent days, with a sharp sell-off in AI-related shares. In our view, much of this reflects a reassessment of valuations and expectations, amplified by investor positioning, rather than a deterioration in the underlying demand picture. We continue to see strong demand for AI compute and supporting infrastructure, and industry supply remains tight in many areas.

NVIDIA leadership change

Our global equity investment team views news that Jensen Huang has resigned as NVIDIA CEO primarily as a company-specific matter rather than a change in the outlook for AI demand. Our focus is on how the company is organized.

Decision-making has historically been highly centralized with the CEO having an unusually large number of direct reports and no obvious successor. A transition may call for a new organizational structure rather than simply a new executive. We expect the established product roadmap to remain largely intact. The risk we are watching is whether the pace of later development slows, which could give competitors more room to gain share over time.

Pace of build-out versus strength of demand

An area to watch is the pace of infrastructure build-out and the strength of underlying demand. AI usage continues to grow, and we believe consumption can keep rising even if capital spending moderates. Near-term visibility remains reasonable, as projects already underway involve land, power, and buildings with long lead times.

What may change is the speed and financing of the buildout. Growing local scrutiny of data center development, constraints on power and permitting, and limits on how much debt credit markets will fund could move the industry toward a slower but more sustainable pace. In that scenario, installed and powered capacity could become more valuable.

We would also expect companies with sustainable volume growth to be better placed than those that have relied mainly on scarcity-driven price increases.

Selectivity matters

The AI opportunity is broadening across the technology supply chain, but conditions differ between segments. The bottlenecks are also shifting, from leading-edge chips and memory toward packaging, components and, over time, power and grid capacity. This seems to favor selectivity over broad exposure, with a focus on durable demand, resilient earnings and valuation discipline.

What we are watching

Our confidence in the implications for AI demand is greater than our confidence in the implications for any single company. Increased scrutiny of non-U.S. sales could affect shipments of AI chips in 2028 and beyond.

We are watching NVIDIA’s upcoming earnings report and the selection of a permanent CEO as the next important signals.

Jennifer O'Hara Martin Jennifer O'Hara Martin Global Equity Portfolio Specialist
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