Weekly Buzz: The next winners of the AI boom 🤖

It's easy to spot the early winners of the AI boom. Nvidia is now the first US$4 trillion company as the world scrambles to load up on chips. There are, however, probably even more winners on the horizon – the companies that can use AI to run faster, leaner, and smarter.

The payoff in productivity

AI's real economic impact isn't just about flashy new products. It's about making existing operations dramatically more efficient – efficiency that translates to a firm’s bottom line.

Take Amazon's warehouses, where a hybrid workforce of humans and robots has slashed processing times and labour costs. Or consider JPMorgan, which now uses AI to review loan agreements in seconds – work that used to tie up analysts for hours. The pattern repeats across industries. Manufacturing companies are using AI to predict equipment failures before they happen, avoiding costly downtime. Retailers are optimising inventory in real-time, reducing waste and freeing up capital.

For investors, these efficiency gains represent something valuable: sustainable competitive advantages. Companies that successfully embed AI into their operations can do more with less, maintain higher profit margins, and reinvest those savings into further innovation.

(For more on the global shifts ahead – including AI’s impact – check out our 2025 Mid-Year Outlook.)

What's the takeaway?

AI investing isn’t just about being early – and it extends far beyond chipmakers. Think of it this way: the first wave is about building AI infrastructure, the next waves will be about putting it to work. That requires a focus not just on who’s building the tech, but also who’s deploying it in ways that compound into long-term shareholder value over time. 

This is where diversification becomes particularly valuable. Rather than trying to pick individual winners, a globally diversified portfolio naturally captures these second-wave winners across different sectors and regions. You're not just betting on who builds the best AI – you're invested in the whole economy as it becomes more efficient.

(If you’re looking for a portfolio that captures global growth, check out General Investing – for targeted exposure to the companies building the tech, see our Thematic Portfolios.)

📰 In Other News: China’s diversifying its trade strategy

China’s trade data for June came in stronger than expected, giving economists a moment to catch their breath. Exports jumped 5.8% year-over-year, improving on May's 4.8% growth. Meanwhile, imports climbed 1.1% after falling 3.4% the previous month – a sign of recovering domestic demand.

While China's exports to the US have dropped for the third consecutive month, the decline has eased from the previous month, thanks to the temporary trade truce struck in May. Chinese exporters are also diversifying away from the US – China's shipments to Southeast Asian nations have surged 15% while those to the EU jumped 12%.

Trade remains one of China's key economic engines, and this data suggests it's still running, even if it isn’t at full speed. The truce with the US has helped, but with all the uncertainty around the White House’s trade policies, any progress can feel fragile. For now, China's trade strategy involves diversifying to open up opportunities elsewhere.

(For broad exposure to China, or even targeted investing in its tech sector, check out Flexible Portfolios.)

These articles were written in collaboration with Finimize.

🎓 Simply Finance: Imports and exports

A country’s import and export figures can reveal a lot about its economic health. Rising exports usually signal stronger domestic production and global demand for a country's goods – a sign of economic growth and employment. Rising imports typically signal stronger domestic demand as consumers purchase more goods and services – another indicator of economic strength.