Transformative technologies don’t just meet expectations—they redefine them. As advances such as artificial intelligence, blockchain, and other breakthrough innovations gain traction, understanding how innovation drives long-term value creation has become essential for portfolio positioning. The question is no longer whether innovation will shape markets, but how investors can thoughtfully participate in the next wave of growth.
Innovation is often underestimated
History shows us that transformative innovations have exceeded expectations—with actual results exceeding forecasts by 22–58%¹. If history repeats itself, today’s $1.8 trillion AI market forecast could be surpassed, just like all the others.
Growth stocks have outperformed for a reason
The rise of the Magnificent 7 didn’t happen by chance— their earnings, driven in part by the cloud computing innovation wave, have grown at over twice the rate of the broader S&P 500 Index over the past five years.
Fuel for the next wave?
A potential catalyst for the next wave of growth could be a significant increase in AI capital expenditures (capex). Hyperscalers alone are expected to quadruple capex from just over $100 billion at the start of the decade to more than half a trillion annually starting in 2026.2
Other companies may follow suit, particularly as businesses across all industries accelerate their AI adoption.
Innovation has delivered—at every level
The past five years have demonstrated that proximity to innovation has helped drive investment returns. Whether it’s broad market exposure, more direct technology exposure to AI and cloud computing or the explosive growth of cryptocurrency and blockchain technologies, investors have benefited from innovation.
The pattern has been consistent:
Transformative innovation has delivered transformative returns—the question is how you want to participate.