In our view, we remain in the opening stages of an AI–driven investment cycle that we believe will transform the global economy.

However, as AI adoption accelerates across industries, the path has been anything but linear. In 2025, there was volatility as the emergence of DeepSeek raised concerns that increasingly powerful, low-cost AI models could compress pricing and undermine monetization assumptions. AI-driven market volatility resurfaced in early 2026, with software stocks coming under renewed pressure as investors grapple with determining how the rise of AI will impact business models and future profitability.

Against this backdrop, Jennison’s Zac Gill, a global equity research analyst specializing in technology, fintech, and internet companies, recently shared his perspective—providing important context on AI-driven volatility and where Jennison sees the most compelling opportunities emerging.