Temasek warns AI trade reversal is the biggest risk to markets

Singapore state investor Temasek called an unwinding of the AI trade the biggest risk to markets, though it does not see it as imminent. CIO Rohit Sipahimalani said roughly half of Russell 3000 stocks are at least 20% below their June highs, with index gains resting on a narrow group of AI winners.

• Temasek: AI trade reversal is the biggest market risk
• About half of Russell 3000 stocks are 20%+ below June highs
• Around 50% of Temasek's AI exposure is public, targeting 70–75%
• Triggers: tighter regulation and weak returns on AI spending