In the immediate aftermath of the pandemic, two investment themes captured the market’s imagination: artificial intelligence (AI) and GLP-1 weight-loss drugs. However, as we transition further into the decade, only one of these trends—AI—continues to demonstrate strength and resilience.

AI’s success has been driven by remarkable demand for both cloud and edge computing capabilities, particularly in generative AI and large language models. Tech giants including Nvidia, Microsoft, and Alphabet have experienced rapid growth, with revenue for cloud services and AI hardware soaring. Notably, the market for AI-associated chips and high-bandwidth memory has surged, evidenced by impressive stock performances from companies such as Nvidia, Micron Technology, and SK Hynix. Companies that supply critical hardware or own leading AI platforms are now seen as the sector’s anchors.

Meanwhile, the story for GLP-1 drugs—heralded as a breakthrough for obesity and diabetes—tells a different tale. While initial hype sent pharmaceutical stocks higher, the narrative has cooled. Investors have grown more cautious due to pricing concerns, emerging competition, and the realization that the long-term profitability of these drugs is still unproven. Additionally, broader impacts on industries thought to benefit from widespread GLP-1 adoption, such as health insurers and food companies, have proved less dramatic than forecasted.

In contrast, the AI wave continues to gather momentum as businesses across all industries rush to adopt new automation solutions, improve analytics, and deploy powerful data-driven strategies. Investment interest remains robust, supported by continued innovation and rising enterprise spending.

Ultimately, while the GLP-1 trade has lost its spark, AI remains firmly in the market’s spotlight, cemented by tangible earnings growth and unrelenting industry enthusiasm. Investors looking for enduring post-pandemic themes may find AI to be the only hot trade still truly thriving.