Rosenberg Research: The investor's guide to AI - and how to profit from its next chapter
In this Special Report, we identify and wade through the far-reaching impacts that Artificial Intelligence (A.I.) will exert across the overall economy, a wide swath of industries, and various asset classes. As well, we discuss investing opportunities and potential risks. An appendix on A.I. models, technologies, and infrastructure is included at the end for interested readers. There are, indeed, many risks to contemplate. But so long as they can be identified, they won't end up falling in the Rumsfeldian bucket of 'unknown unknowns' — rather, they become calculated risks that can be priced out before any investment decisions are made. Risks must always be calculated, not avoided — especially in the realm of generative A.I. with all its complexities and ramifications across the markets, economy, and society at large. This is otherwise known as risk management, and that is a key aspect addressed in this report. Knowledge, after all, is power, and this report serves as a guide for making educated and well-informed decisions. Yet, as extensive as it is, the topics covered are by no means exhaustive, and we welcome any thoughts or suggestions from our readership regarding further development of the storyline. Overall, it appears to be full steam ahead for investors with long time horizons. With 'The Next Generation' being the central thesis, how apropos to quote the great Captain Picard: 'Engage!' Those investors who missed out on the first chapter of this A.I. story will be comforted to know that many more chapters are on the way, and they can look forward to more significant opportunities ahead. The multiplier effects from the steam engine, the cotton gin, the railway, electricity, automobiles, and the internet lasted many years and spawned numerous profitable investments.
Read the full report here.
To request a subscription to Rosenberg Research, fill out this form
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
an hour ago
- CTV News
S&P/TSX composite closes higher on Wednesday, U.S. markets up
The Bay Street financial district is shown in Toronto on Friday, August 5, 2022. THE CANADIAN PRESS/Nathan Denette TORONTO — Gains in consumer and financial stocks helped lift Canada's main stock index to finish higher Wednesday, while U.S. markets also rose. The S&P/TSX composite index was up 51.98 points at 27,416.41. In New York, the Dow Jones industrial average was up 507.85 points at 45,010.29. The S&P 500 index was up 49.29 points at 6,358.91, while the Nasdaq composite was up 127.33 points at 21,020.02. The Canadian dollar traded for 73.48 cents US compared with 73.34 cents US on Tuesday. The September crude oil contract was down six cents US at US$65.25 per barrel. The August gold contract was down US$46.10 at US$3,397.60 an ounce. --- This report by The Canadian Press was first published July 23, 2025.
CTV News
2 hours ago
- CTV News
U.S.-Japan trade deal averts worst for global economy
Japan's Prime Minister Shigeru Ishiba attends a press conference at the headquarters of the Liberal Democratic Party (LDP) in Tokyo Monday, July 21, 2025. (Philip Fong/Pool Photo via AP) FRANKFURT — Japan's trade agreement with the U.S. could serve as the benchmark for many other deals currently being negotiated with Washington, and the global economy could just about support the 15 per cent level agreed overnight, economists said. Tokyo's deal with the U.S. lowers tariffs on auto imports to 15 per cent from levies totalling 27.5 per cent previously. Duties that were due to come into effect on other Japanese goods from August 1 will also be cut to 15 per cent from 25 per cent. The deal with the world's fourth-largest economy, which includes commitments for U.S.-bound investment and loans, is the most significant of a clutch of pacts U.S. President Donald Trump has concluded to date. It raises pressure on China and the European Union, which both face crucial August deadlines. Although 15 per cent is still a significant duty, such a level is still manageable and less damaging than the volatility created by the uncertainty, which has made it near impossible for firms to plan investments, some economists argue. 'Average tariffs for the U.S. were around 2.5 per cent for 2024 (while) currently, average tariffs stand around 17 per cent,' Mohit Kumar at Jefferies said, referring to the rise in global duties since Trump's so-called 'Liberation Day' announcement on April 2. 'Our base case remains that when the dust settles, we could see average tariffs around 15 per cent, though recent deals suggest that this number could be slightly higher,' Kumar said. 'While a negative from a macro point of view, the world can live with 15 per cent or so tariffs.' Financial markets heaved a sigh of relief on Wednesday. Automakers lead stock gains Japan's Nikkei stock index jumped 3.5 per cent on the deal but European shares were also higher, driven by automakers, on growing optimism that workable deals are possible. 'It looks like the benchmark for major economies is going to be 10-15 per cent and a somewhat higher level for smaller economies,' Derek Halpenny, head of research at MUFG in London, said. Volvo Car stocks jumped more than ten per cent while Germany's Porsche, BMW, Mercedes-Benz and Volkswagen, all with significant U.S. sales, rose between four and seven per cent. 'This more positive trade news has really helped to ease investor fears that tariffs are about to snap back higher on August 1,' Deutsche Bank's Jim Reid said. 'But of course, the threat of much higher tariffs still remains for several large economies, including the 30 per cent on the EU, 35 per cent on Canada and 50 per cent on Brazil,' Reid added. 'We also know from experience that we might not know the outcome until hours before the deadline.' Longer-term U.S. inflation expectations eased a touch on the deal, suggesting that trade agreements could alleviate some price fears and give the U.S. Federal Reserve room to lower interest rates later this year. However, markets continue to see a close to zero chance of a Fed rate cut next week and the first move is not fully priced in until October. The EU, which negotiates trade deals on behalf of its 27 members, could be next. Trump has said he will impose 30 per cent tariffs by August 1, triggering threats of retaliatory measures from the EU. Such a level would be economically debilitating for a bloc that relies heavily on trade and would wipe out whole chunks of transatlantic commerce. The EU originally hoped it could secure a tariff of around 10 per cent but has since accepted the outcome is likely to be several points higher at least. Pressures also remain high on China, which is facing an August 12 deadline before tariffs could snap back to 145 per cent on the U.S. side and 125 per cent on the Chinese side without a deal or a negotiated extension. 'The US-Japan deal will put more pressure on other major Asia exporters to secure better deals,' ING said. 'We've already seen trade deals with the Philippines and Indonesia. Before 1 August, there should be more deals struck with Asian exporters.' --- Reporting by Balazs Koranyi; editing by Mark John and Sharon Singleton
Globe and Mail
3 hours ago
- Globe and Mail
Market Analysis: July 23, 2025
Global Markets Canadian Markets Canadian markets edged higher on Wednesday, showing resilience even as both gold and oil prices remained under pressure. Canadian prime minister, Mark Carney, stated that the country would not settle for a 'bad deal' regarding U.S. tariffs. With the August 1st deadline for new U.S. tariffs looming, negotiations between the two nations appear stalled, casting doubt on whether a last-minute agreement can be reached. American Markets U.S. stocks climbed after news broke that the United States and Japan had reached a trade agreement. The deal, seen as favorable for Japanese automakers, lifted sentiment broadly across global markets. Google and Tesla is set to report earnings after the closing bell. For Tesla, it is an event highly anticipated by investors given the stock's recent volatility and questions surrounding the company's margins, growth strategy, and delivery performance. European Markets European stocks moved higher on optimism that a similar trade deal could be struck between the U.S. and European Union, especially one that benefits European carmakers. Automakers led the gains across major indices in Europe. Shares of German software giant SAP dropped, despite the company reporting a strong quarterly performance. Investors were disappointed that SAP chose to maintain its full-year guidance instead of raising it, dampening enthusiasm. In the UK, stocks reached yet another all-time high, driven in part by strong performances from mining and industrial sectors. A record number of UK-listed companies issued profit warnings in the second quarter, raising red flags about the upcoming earnings season and potentially signaling broader economic challenges. Corporate News Alibaba Group Holding Ltd: Launched Qwen3-Coder, its most advanced open-source AI coding model. Designed for complex programming tasks, it's strong in autonomous coding workflows. Inc: Acquired Bee, a startup making AI-enabled wristbands that transcribe and summarize conversations. America Movil SAB de CV: Swung to a Q2 profit of 22.28 billion pesos, driven by 11 billion pesos in FX gains and reduced financing costs. Revenue rose 14% to $12.46B. AT&T Inc: Beat Q2 profit estimates and added 401K wireless subscribers. Plans to invest $3.5B in fiber network using tax savings and raised free cash flow forecast for 2026–27 by $1B. Baker Hughes Co: Beat Q2 estimates with EPS of $0.63 vs. $0.56 expected. Gas tech orders up 28%, though overall revenue declined 3% YoY to $6.91B due to weaker drilling activity. Boeing Co: Offered union workers a 20% wage increase over 4 years, a $5K bonus, and more leave in its latest contract proposal. Capital One Financial Corp: Q2 profit rose to $2.77B ($5.48/share) from $1.21B. Interest income surged 32.5% to $10B; loan loss provisions jumped to $11.43B. Charter Communications Inc: Partnering with Comcast to launch an MVNO using T-Mobile's 5G network for business customers. Chubb Ltd: Q2 core operating income rose 13% to $2.48B; record investment income ($1.57B) and underwriting performance. Combined ratio improved to 85.6%. Coca-Cola Co: Jefferies raised target price to $84 (from $83) due to easing forex headwinds. Comcast Corp: Partnering with Charter on an MVNO service for business customers using T-Mobile's network. ConocoPhillips: In advanced talks to sell Oklahoma assets to Stone Ridge Energy for ~$1.3B. Corpay Inc: To acquire UK-based Alpha Group for $2.2B, expanding into investment fund client segment. CoStar Group Inc: Raised annual revenue forecast (now $3.14–$3.16B) due to strong traffic and 65% quarterly jump in net new bookings. Dassault Aviation: Raised concerns about the future of a trilateral fighter jet project due to disputes with Airbus over program control. Delta Air Lines Inc: Facing scrutiny from U.S. senators over potential AI-driven ticket pricing. Denies using personal data for individualized fares. Enphase Energy Inc: Forecast Q3 revenue of $330M–$370M, missing expectations. Q2 profit beat estimates despite gross margin pressure from Trump-era tariffs. Equinor ASA: Q2 pre-tax profit dropped 13% YoY to $6.54B, in line with expectations. Maintains 2025 production and capex guidance. EQT Corp: Q2 profit beat, raised production forecast to 2,300–2,400 Bcfe from 2,200–2,300. Benefits from higher gas prices and Olympus Energy acquisition. Ford Motor Co: Industry group opposes Japan trade deal that lowers tariffs while maintaining higher ones on Canadian/Mexican autos. Galaxy Digital Holdings Ltd: Jefferies initiates with a 'Buy' rating, $35 target; sees upside from crypto regulation and AI data center demand. General Motors Co: Concerned about trade deal that gives Japan a tariff advantage over North American automakers. Hilton Worldwide Holdings Inc: Raised full-year adjusted profit forecast to $7.83–$8/share, from $7.76–$7.94. Q2 EPS rose to $2.20 from $1.91. Infosys Ltd: Narrowed annual growth forecast to 1%–3%. Q1 sales rose 7.5% to $4.89B; net profit rose 8.7% to 69.21B rupees. Intuitive Surgical Inc: Beat Q2 estimates with EPS of $2.19 (vs. $1.92 expected); lifted gross margin forecast and expects lower tariff impact. Jefferies raised target to $550 (from $530). Lockheed Martin Corp: Jefferies cut target to $460 from $500 after a $1.6B pretax loss tied to a classified aeronautics program. Microsoft Corp: Initial SharePoint patch failed to fix major vulnerability exploited by Chinese groups. Released additional patches afterward. Morgan Stanley: Under FINRA investigation for weak AML client screening across its wealth and institutional units. PayPal Holdings Inc: Launched PayPal World for cross-border payments, in partnership with India's UPI, Mercado Pago, Tenpay Global, and Venmo. SAP SE: Q2 sales and earnings rose, but stock fell as SAP kept FY guidance unchanged. Free cash flow jumped 83% to €2.36B, beating expectations. TE Connectivity PLC: Beat Q3 estimates and issued upbeat Q4 guidance. Tariff impact was half of expected (1.5% vs. 3%). Forecast Q4 revenue ~$4.55B. Texas Instruments Inc: Q3 guidance missed expectations. Cited tariff/geopolitical issues. Jefferies raised price target to $185 from $155. UniCredit (Italy): Withdrew €15B bid for Banco BPM, blaming government interference. Vale SA: Q2 iron ore output rose 3.7% to 83.6M tons. Sales fell 3.1% YoY, but strong performance from S11D and Brucutu mines supports 2025 goals. Woodside Energy Group Ltd: Q2 revenue rose 8% to $3.28B, helped by Senegal's Sangomar project. Took write-downs on hydrogen and old offshore assets. Lowered production costs to $8–$8.50/boe.
