DWS Group said artificial intelligence is driving sharp stock-market rotations and heightened volatility, but it views the move as a structural AI boom rather than a bubble. The asset manager expects supportive macro conditions, including solid growth and stable-to-lower central bank rates, and sees a low risk that 10-year U.S. Treasury yields stay above 4.5%. DWS argues broad “AI basket” investing is difficult and favors selective stock picking, avoiding contested areas such as software and data-related businesses while focusing on bottleneck beneficiaries like Asian semiconductor memory makers, AI infrastructure and electrification plays, and energy producers and distributors. It also urged greater regional diversification, having downgraded U.S. equities and upgraded Europe and Japan.

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