The AI Wave: Riding Innovation Without Losing Balance

Artificial intelligence (AI) isn’t just shaping the future – it’s already reshaping our everyday lives.
From apps that plan your meals to software that analyses vast amounts of data in seconds, AI is changing the way we live, work and invest.

A new era of innovation

The scale of AI investment worldwide has been extraordinary. Analysts now expect global AI-related spending to exceed $490 billion by the end of 2026, up from earlier estimates of $420 billion.¹

Companies like Nvidia and Microsoft are leading the charge, building the computing chips, cloud infrastructure and software that power AI. Their success has fuelled much of the US share-market rally this year.

Behind this optimism is a simple idea: AI could help businesses do more – faster, smarter and more efficiently.

But not every innovation will deliver lasting value.

Balancing progress and perspective

Recent reports show growing debate over whether markets are entering an AI bubble.
Goldman Sachs argues that while valuations in the biggest AI names are somewhat elevated, earnings growth largely supports those gains - suggesting enthusiasm, not euphoria.²

On the other side, analysts quoted by The Guardian and 1News NZ warn that speculative excess and heavy investment in AI-linked infrastructure could leave some companies exposed if profits fail to materialise.^{3 4}

Market watchers agree on one thing: AI enthusiasm has made global share performance unusually concentrated. The top handful of tech giants now account for a large share of index gains - meaning short-term volatility could spike if expectations cool.⁵

What some investors are doing

Many experts are now recommending balance.

The Wall Street Journal notes that investors can cushion their portfolios by staying broadly diversified - spreading investments across different regions, sectors and companies, rather than concentrating too heavily in a handful of large tech stocks.⁶

Others point out that true innovation runs deeper than short-term market themes: the real winners will be companies that apply technology responsibly and profitably over time.⁷

Investing with purpose – and perspective

At Booster, we see innovation as a powerful force for progress, but excitement alone isn’t a strategy.

The rise of AI is a reminder that markets can move quickly when change is in the air – but not every new idea will stand the test of time.

That’s why our investment approach stays focused on fundamentals: maintaining diversified exposure to global markets while balancing this with active oversight and selective positioning to manage risk and opportunity over time.

Building New Zealand’s own innovation story

We don’t just invest in markets – we invest in New Zealand’s future.

Through the Booster Innovation Fund, we back Kiwi companies using science and innovation that are developing many important solutions to a variety of  real-world challenges - from sustainable manufacturing and improving human health to clean energy and improving food supply.

By backing innovation that uses technology with purpose, including advancements in machine learning and AI, we are helping our next generation of innovators turn smart ideas into lasting value. 

Staying confident through change

AI is transforming economies faster than most of us expected, but some things are unlikely to change: the value of discipline, diversification and long-term perspective.

Markets will always have waves of excitement. The key is knowing how to ride them – in our view this is not by chasing every surge, but by staying balanced and focused.

That’s how Booster invests for you.

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