Société générale strategist suggests AI adoption will outpace AI development in 2027 amid chip market volatility

Manish Kabra, Chief US Equity Strategist at Société Générale CIB, has indicated a strategic focus on companies utilizing artificial intelligence rather than those developing the technology itself in 2027. Kabra's perspective is rooted in the inherent cyclical nature of the semiconductor industry, which he described as a volatile yo-yo pattern. Kabra noted that the growing conviction surrounding AI adoption is currently driving investment into hyperscalers and frontier AI laboratories, which subsequently influences the AI capital expenditure cycle. He further observed that the broader S&P 500, outside of the technology sector, continues to show a strong inclination toward integrating AI into its operations rather than disregarding it.