Increase AI exposure despite geopolitical tensions: deVere
Investors should be increasing exposure to the AI ecosystem, despite the Iran war creating another layer of global volatility, asserts the CEO of one of the world’s largest independent financial advisory organisations.
The analysis from Nigel Green of deVere Group comes as Big Tech accelerates capital expenditure into artificial intelligence infrastructure, while geopolitical tensions risk distracting markets from one of the most powerful structural growth trends of the decade.
Meta’s latest push into advanced AI models under its new Muse series underscores the scale of competition and spending now underway.
The company’s multi-billion-dollar commitment to talent, infrastructure and model development reflects a broader pattern across the sector, with leading firms collectively committing hundreds of billions of dollars to AI buildouts over the next few years.
Nigel Green says: “Geopolitical risk has increased sharply, but the trajectory of AI investment remains intact and is intensifying.
“Investors who allow short-term headlines to obscure long-term structural shifts risk missing one of the defining opportunities of contemporary markets.”
Global AI-related capital expenditure is projected to exceed $300bn annually within the next few years, driven by hyperscalers and enterprise adoption.
Semiconductor demand continues to surge as advanced models require exponentially greater compute power.
Nvidia’s revenues have more than tripled year-on-year at peak points of the cycle, while other chipmakers and suppliers across the value chain are reporting sustained order backlogs.
The deVere Group CEO comments: “Compute is the bottleneck of the AI economy. Chips, data centres, networking infrastructure and energy supply form the foundation.
“Those supplying the tools enabling AI are positioned to benefit regardless of which models or platforms ultimately dominate.”
He continues: “The investment case for the wider AI ecosystem dynamic is strong.
“Semiconductor companies, advanced packaging specialists, and cloud infrastructure providers are central to this expansion. These are the core enablers of a multi-year investment cycle.”
Recent data shows that global semiconductor sales are expected to surpass $700bn, with AI-specific chips representing the fastest-growing segment.
At the same time, cybersecurity spending is accelerating as AI adoption increases the attack surface for businesses and governments. The global cybersecurity market is forecast to exceed $250bn within the next two years.
“AI creates demand across adjacent sectors, particularly cybersecurity, where the stakes are rising alongside capability. Digital defence becomes critical as systems grow more complex and interconnected,” notes Nigel Green.
“Market volatility linked to the Iran war and broader geopolitical friction has pushed risk premiums higher across asset classes.
“Energy markets have reacted, currencies have shifted, and equity markets have experienced intermittent pullbacks. Yet underlying investment trends in AI infrastructure show no signs of slowing.
“Periods of geopolitical tension often lead investors to become overly defensive. History teaches us that structural innovation cycles continue through conflict and uncertainty.
“The companies building the future don’t pause their investment programs because of short-term instability.”
He adds: “Major technology firms are increasing capital expenditure commitments, not reducing them. Demand for compute capacity, storage and connectivity continues to outstrip supply. This imbalance supports sustained revenue growth across the AI ecosystem.”
Meta’s renewed focus on proprietary AI models follows earlier challenges in gaining traction with open-source offerings. Strategic shifts like this highlight the intensity of competition and the speed at which companies are adapting to capture market share in AI.
Competition is accelerating innovation and spending simultaneously.
“This reinforces the investment case for the broader ecosystem rather than any single company or model. Diversified exposure across the AI supply chain provides a more resilient way to participate in this growth.”
He concludes: “AI revolution – and it is a genuine revolution – is advancing at pace. War and geopolitical tensions are real risks, but they do not alter the direction of technological progress or capital allocation.
“As such, investors should be positioning for continued expansion in the broader AI ecosystem.”