The artificial intelligence (AI) supply chain is one of the most attractive investment themes should a potential peace agreement between the US and Iran materialise, says Finnomena Funds, noting it could be a catalyst for a global market rally.
The investment firm believes the anticipated ceasefire deal between Washington and Tehran represents a turning point for global financial markets, as geopolitical tensions that have weighed on investor sentiment begin to ease.
According to Jessada Sookdhis, chief executive and co-founder of Finnomena Funds, a successful agreement would create a favourable environment for risk assets, supported by a weaker dollar, declining bond yields and renewed investor confidence in technology and AI-related sectors.
"We view this as an important investment window for investors seeking opportunities from a weakening dollar and lower bond yields, while also benefiting from positive sentiment across the AI supply chain," he said.
FOUR MARKET DRIVERS
Finnomena highlighted four major factors behind the improving outlook for global markets.
The first is the anticipated peace agreement between the US and Iran. The firm expects both countries to reach a formal understanding that would pave the way for the reopening of the Strait of Hormuz on Friday, restoring stability to one of the world's most strategically important energy routes.
Second, easing geopolitical tensions have already contributed to a decline in crude oil prices. Falling energy costs are expected to ease inflationary pressures worldwide and reduce the need for aggressive monetary tightening by the US Federal Reserve.
"A more accommodative policy outlook could provide additional support for global equity markets, particularly growth-oriented sectors," said Mr Jessada.
Third, ongoing developments at SpaceX have reinforced investor confidence in the technology sector. Strong momentum in innovation and AI continues to drive capital flows into leading AI companies, allowing the sector to outperform broader equity markets.
The fourth catalyst is the broader macroeconomic backdrop. A weaker dollar and declining Treasury yields have historically created favourable conditions for equities, commodities and emerging market assets, he said.
MAJOR BENEFICIARY
Mr Jessada said he believes the memorandum of understanding between the US and Iran scheduled for Friday reflects both countries' shared incentive to reduce the risks associated with a prolonged conflict.
The firm said international mediators are facilitating negotiations, while more complex issues such as nuclear-related discussions have been deferred to a separate 60-day negotiation framework, increasing the likelihood of an initial agreement being reached.
Finnomena sees AI infrastructure and the broader AI supply chain as the clearest beneficiaries of improving market conditions.
Lower financing costs, improving liquidity and sustained investment in data centres, semiconductors, cloud computing and power infrastructure are expected to support long-term growth across the sector.
If the US-Iran peace agreement is successfully implemented and the Strait of Hormuz reopens, global markets could enter a new phase of synchronised gains. In such a scenario, AI supply chain companies, supported by powerful structural growth trends and improving financial conditions, could emerge as some of the strongest performers in the next investment cycle, he said.
