AI Akin to Space Race, Says Empower’s Norton

Market Volatility & Geopolitics - Geopolitics is increasingly becoming a source of market volatility, impacting individual companies and the market broadly [2] - Trade relationships, particularly between the U S and China, involve leverage points that both sides are trying to exploit [4] - Trump's geopolitical risk is a key story, intertwined with the semiconductor industry [6] - Companies are closely aligned with the Trump administration's objectives, akin to a space race driven by sovereign interest [7] Demand & Growth - Massive demand exists domestically, even in a potentially bifurcated world where the U S and China may not trade as much [9] - Demand from hyperscalers based on AI workflows is a positive factor [11] Investment Strategy - The market has experienced a tremendous run since April 8th, leading to potential overvaluation [10] - Rebalancing and taking profits may be prudent, given the underlying risks and the market's 16% year-to-date increase on the Nasdaq 100 [9][10] - The current euphoric market conditions suggest positioning for a potential moment of doubt [13] - Innovation periods are not expected to be linear and may experience fits and starts [12]