Alexandra Wilson-Elizondo, Co-Chief Investment Officer of Global Multi-Asset Solutions at Goldman Sachs Asset Management, expressed optimism about the global stock market outlook during an interview, with a particular emphasis on the potential for further growth in the US stock market. She highlighted profits as a key driver, stating that even though US stock valuations may be high, strong corporate earnings provide support for valuations, with profit margins also at historical highs, serving as an additional source of backing. Many large technology companies have been investing heavily in AI in recent years. Alexandra noted that there is a significant difference in the AI theme this year compared to last year, with a greater emphasis on the importance of selecting individual stocks due to differences and divergences between companies. According to Alexandra, last year's AI theme was about "tell me the story", while this year it is more about "show me the story". The focus is not limited to semiconductors but extends to the entire AI ecosystem. Therefore, investments in various AI-related industries are recommended, rather than just a single sector. Additionally, Alexandra highlighted that a significant portion of funding for AI infrastructure comes from the private equity market. Alexandra mentioned that the AI narrative is not only playing out in the public market but also in the private market, with expectations for companies like SpaceX and OpenAI to go public this year at valuations exceeding a trillion dollars each. This reflects the significant value creation in the private market, leading investors to consider a mix of public and private market investments in their portfolios. In terms of evaluating the reasonable valuation of AI stocks, she emphasized the importance of seeing investment returns over time and whether AI investments are starting to yield profits. Profitability is key in determining price-to-earnings ratios, particularly during large tech cycles like the present one, where stock prices may appear elevated for an extended period. However, over the past 24 months, the costliest trades for investors have been those not holding these stocks.