Artificial intelligence was the dominant theme at the Wall Street in 2025, and is expected to remain so in the coming years. If you are an Indian investor with an interest in the US stock market, here are five AI-related trends that may help you position yourself better.
Before we move ahead and explain the five emerging trends in AI, let us first decipher this bonus trend, called ‘HALO trade'.
Heavy Assets, Low Obsolescence, or HALO is a trend where investors look to buy stocks of companies that AI cannot easily disrupt. Although this investment decision sounds like it's not about artificial intelligence, but it still centred around the impact of AI.
To put it in simple terms, it is a search for a business AI is not going to replace, not any time in the foreseeable future, at least. This can include physical infrastructure, branded consumer franchises, resource companies, and essential services.
Also Read: Nvidia Earnings Slam Into Market With No Patience For AI Hiccups
Besides HALO, here's a look at four other AI trends that may shape the Wall Street's movement in the near future:
AI Is Going Nowhere
Artificial Intelligence has evolved from just a narrative into a force to be reckoned with. If you are keeping an eye on the US earnings calls, sector after sector, are quantifying AI-related revenue, cost savings or capex. This can be observed in the Nvidia, Palantir, and Meta stock prices, with investors pricing in multi-year demand for chips, software, and data infrastructure.
The crux, for the Indian investor, is that AI is still and will continue to be the core growth engine in the US Stock Market. It is not a passing theme.
The AI Discount In Software Stocks
Software companies, despite healthy earnings, have been underperforming. Some baskets in the sector have been down double digits. As per the analysts, there is a fear in the investor's mind, a fairly simple one: If AI can do more, will customers pay premium license fees? This has led the investors to diversify into HALO trade and AI infrastructure providers.
The analysts are calling it the “AI Anxiety” in the software sector.
Banks And AI? What Can Be The Possible Connection?
Financials around the world, particularly in the US, are repositioning around AI. The banks in the US and capital-market firms are experimenting with AI for risk models, trading workflows, and client interfaces.
While the mentions of AI have significantly surged in the US banking and financial earnings, it brings an opportunity to fore.
This, as per the experts, intersects with “lucid capital markets” style thinking: more data-driven, more automated, and potentially more efficient allocation of capital.
The New AI Baskets: Thematic ETFs
Rummaging through the market and picking individual winners can be cumbersome at times. Rather, one can now pick thematic US ETFs that compile AI, cloud, cyber-security or automation stock bundles.
These bundles often come with Nvidia, Palantir, and Meta and other major AI beneficiary stocks.
To Indian investors, this brings an opportunity, a cleaner way to bet on AI while mitigating the risks associated with a single stock.
Also Read: Citrini Founder Shocked His AI Prediction Spurred Stocks Selloff
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