Dear Smart Money Subscriber,

We are witnessing the largest wealth creation opportunity in modern history. While most investors are still debating whether AI is overhyped, the numbers are already telling a different story. Morgan Stanley projects that AI could add between $13 trillion and $16 trillion in value to the stock market, with the total economic potential of all AI systems potentially adding upwards of $25.6 trillion annually to the global economy.

This week, we're revealing where the smart money is actually investing—beyond the obvious tech giants—and how you can position yourself for this unprecedented economic shift.

The Reality Check: Separating Hype from Opportunity

Here's what most investors don't realize: While AI's long-term potential is massive, the path to value creation is more nuanced than the headlines suggest. In 2025, 30% of enterprise generative AI projects are expected to stall, due to poor data quality, inadequate risk controls, escalating costs, and unclear business value.

The timeline reality:

• ​Only 2% of private equity firms expect to realize significant AI-driven value in 2025​
• But 93% anticipate moderate to substantial benefits within three to five years
• ​Almost all companies invest in AI, but just 1% believe they are at maturity​

This creates a perfect opportunity for patient, strategic investors who understand where real value is being created.

Beyond Tech Stocks: The Hidden AI Investment Goldmines

The biggest opportunities aren't in the obvious places. While everyone chases the next AI unicorn, significant PE investment continues in AI value chain enablers like data centers and other essential staples of the AI stack.

Where smart money is flowing:

Infrastructure & Data Centers

• ​The focus in 2025 will likely be on investments that can drive material cost efficiencies with relatively predictable applications of AI​
• Energy infrastructure supporting AI computing demands
• Cloud storage and computing capacity providers

Industry-Specific AI Applications

• ​AI is transforming industries from healthcare to finance with measurable ROI
• ​AI-powered edge platforms are transforming strategic investment and M&A by scanning markets in real time​
• Supply chain optimization and logistics automation

Workforce Development & Education

• ​Companies investing in AI workforce development will be key players in the next economic shift​
• Reskilling and upskilling platforms
• Human-AI collaboration training systems

The European Opportunity: A $15.7 Trillion Market

Don't overlook international AI opportunities. AI could add up to $15.7 trillion to the global economy by 2030, with nearly half driven by productivity gains alone. European markets are particularly positioned for AI applications targeting specific industry needs, creating opportunities in specialized markets often overlooked by US investors.

The Bottom Line

We're not just witnessing technological change—we're seeing the foundation of the next economic era being laid. 2025 has been marked by significant global shifts, including increased geopolitical instability, the accelerating impact of AI and a changing labor market.

The opportunity is massive, but it requires strategic thinking. To be best positioned to navigate this evolving landscape, investors must balance the benefits of AI-driven growth with a cautious and informed approach.

The smart money isn't chasing AI hype—it's building positions in the infrastructure, applications, and human capital that will power the $16 trillion transformation ahead.

The question isn't whether AI will reshape the economy. It's whether you'll be positioned to profit from the largest wealth creation event in modern history.