How much longer can the AI trade continue, and what should investors be watching as earnings season unfolds?

In this NYSE Live interview, David Busch, Chief Investment Officer at Trajan Wealth, discusses the next phase of artificial intelligence investing, key earnings reports, Federal Reserve policy, and the economic risks that could shape markets in the months ahead.

Busch begins by highlighting the importance of earnings season, particularly results from major technology companies that sit at the center of the AI ecosystem. He explains that investor focus remains concentrated on corporate profitability, AI-related capital expenditures, and signs that companies are successfully monetizing their investments in artificial intelligence.

A major focus of the conversation is the evolution of the AI investment cycle. Busch describes what he sees as three distinct phases of the AI boom: the initial excitement around AI technology itself, the subsequent wave of infrastructure investment supporting data centers and computing power, and the next stage centered on widespread AI adoption across industries.

The interview also explores the role of major technology companies in driving the AI narrative. Busch discusses how firms are balancing substantial investments in infrastructure with investor expectations for profitability and revenue growth. He notes that the market is increasingly focused on how effectively companies can translate AI spending into measurable business results.

Another key theme is the growing demand for AI infrastructure. Busch highlights the importance of data center development, computing capacity, power generation, and energy resources that support emerging AI applications. He explains that infrastructure investments continue to create opportunities across multiple sectors, including industrials, utilities, materials, and technology.

The conversation further examines the broader economy through the lens of corporate earnings. Busch discusses the banking sector as a useful barometer of economic health, pointing to lending activity, loan growth, credit quality, delinquency trends, and reserve levels as indicators closely watched by investors.

The interview also addresses risks facing financial markets. Busch identifies inflation as a primary concern, particularly as energy prices and geopolitical developments continue to influence both producer and consumer costs. He discusses how interest rates, refinancing needs, and slowing economic activity could weigh on corporate earnings and consumer spending if inflation remains elevated.

Labor market conditions are another area of focus. While employment remains relatively strong, Busch notes that investors are paying close attention to signs of softening within labor markets and how those developments may influence Federal Reserve decision-making.

Looking ahead, Busch expects investors to remain focused on earnings growth, AI adoption trends, inflation data, and Federal Reserve communications. He believes these factors will play important roles in determining market leadership and economic momentum moving forward.

Throughout the discussion, Busch shares insights on artificial intelligence, earnings season, technology investing, data centers, inflation, interest rates, Federal Reserve policy, energy markets, and the outlook for U.S. equities.

Disclaimer: Informational content only. NYSE does not endorse or recommend investments, strategies, companies, products, or services discussed.

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