Stock Market Turns More Selective: Pictet Asset Management Chief Strategist

By Harry Wu, 21st Century Business Herald, SFC

After the sharp rise in AI stocks, “the market is becoming much more selective”, said  Luca Paolini, Chief Strategist at Pictet Asset Management, in a recent interview with 21st Century Business Herald.

Before October in 2025, almost all AI-related tech stocks were rising, albeit at different paces, but in the same direction. For a time, AI trading drove everything; investors would buy any AI-related company, regardless of what they were doing.

Now, the market is becoming more selective. Paolini noted that while chipmakers are booming, Google-related AI stocks are performing well, OpenAI-related stocks are struggling slightly. The market now seems to be trying to pick winners and losers. This means that a basket of AI stocks will not perform as well as before, and there will be fewer gains.

The competition continues. Paolini believes that “the most important thing going forward is not only to create the best language models, but to be able to integrate all the aspects of AI into business. And this can affect almost any sector — pharma, the legal sector, education. ” Therefore, the focus will be more on applications than just language models that support AI.