The AI impact on Australian growth stocks is beginning to show in valuations and earnings expectations. As artificial intelligence erodes competitive moats, investors are being forced to reassess which businesses can sustain advantage in a changing market.
Australian equities may be entering a new phase defined by earnings momentum and dividend growth. If value is reasserting itself, portfolios still crowded into momentum names could be more exposed than they appear.
Despite continuing strong economic data for Australia, markets have forecast significant earnings downgrades, and results have been mixed so far. But a main highlight – CBA’s record $10 billion profit – may not be enough to improve investors’ outlook on the banking sector.
