From AI to Infrastructure: The 10 Investment Themes Defining the Next Five Years

by Christopher Gannatti, CFA of WisdomTree, Inc., 3/12/25

By Christopher Gannatti, CFA, Global Head of Research

Key Takeaways

  • AI is no longer just a disruptor but a defining force across industries, forcing companies to integrate or risk obsolescence.
  • Global investment themes are shifting toward infrastructure, cybersecurity and energy expansion as demand outpaces supply in key sectors.
  • Geopolitical realignment, shifting demographics and the rise of thematic investing are reshaping markets, presenting both challenges and unprecedented opportunities for investors.

The 2020s began with historically low interest rates, but the second half of the decade is shaping up very differently—equity markets are soaring, bond yields have reached 15-year highs, and AI is transforming industries at a breathtaking pace. We are living through one of the most significant shifts in economic history, where thematic investing is no longer just a niche strategy; it’s the macro narrative itself. Based on insights from our conversation with Haim Israel, Head of Thematic Investing at Bank of America Merrill Lynch, here are the 10 defining forces that will shape markets in the coming years.

1. Technology Is Eating the World

AI is no longer hype—it’s reality. It’s automating decision-making, transforming industries from finance to biotech and redefining productivity. Every company now faces a simple binary: integrate AI or risk obsolescence. The AI revolution isn’t on the horizon; it’s here, and companies that fail to adapt may not survive the decade.

2. Peak Monopoly: The Magnificent Seven and Beyond

Tech giants have amassed unprecedented market power, consolidating data, talent and infrastructure at an accelerating rate. While politicians debate antitrust measures, the reality is clear: AI is making these companies more entrenched, not less. The concentration of capital in a few firms presents both risk and opportunity for investors navigating the balance between dominance and regulatory backlash.

3. Digital Insecurity: The New Age of Cyber Threats

The “death” of privacy isn’t just a concept—it’s a reality. AI has supercharged cybercrime, making deepfakes and automated attacks more dangerous than ever. The cybersecurity industry will be a critical battleground, and investments in defense technologies will skyrocket. In a world where trust is fragile, protecting digital assets will become just as important as growing them.

4. More! The Insatiable Demand for Resources

AI isn’t just software—it requires an immense physical infrastructure. Data centers, energy grids, semiconductors and raw materials will be pushed to their limits. The world is shifting from an “energy transition” mindset to an “energy addition” reality—demand is growing too fast for clean energy alone to keep up. Expect nuclear power, superconductors and novel materials to gain increasing investor attention.