Jim Tierney, CIO of Concentrated US Growth at AllianceBernstein, joins Seana Smith and Madison Mills to highlight three key market themes for investors to watch in 2025.

The first topic is artificial intelligence, with Tierney explaining: “It really dominated the market this year, and I think it will continue to dominate the market next year.” He describes AI development as a “train ride” of which Semiconductors will benefit greatly in 2024. The next stop, he predicts, will be implementers, hyperscalers and software companies in 2025, what he calls “the year of the software companies” AI trading.

The second topic revolves around electricity consumption. Tierney notes: “We haven’t seen an increase in electricity consumption in decades because of efficiency, and we’re starting to get to the point where there will be growth.” He points to developments such as data center expansion and data center realignment and suggests that electricity consumption will be “an underappreciated long-term driver of U.S. economic growth.”

The third issue concerns the tariff policy proposed by President-elect Donald Trump. Tierney highlights Constellation Brands (STZ) as a potential beneficiary of these policy changes.

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This post was written by Angel Smith