Andersen Capital founder says easy gains in the S&P 500 may be fading

Peter Andersen, founder of Andersen Capital Management, said investors are starting to reassess the returns on artificial intelligence capital spending, a shift he believes could make future market gains depend more on stock picking than on simply owning the S&P 500. In his view, the earlier trade of buying anything tied to AI is losing steam as investors ask whether heavy spending can actually produce revenue and cash flow. Andersen said the AI investment theme is not over, but large technology companies now face pressure to show that their massive outlays can turn into real business results. He added that capital may begin moving into areas that had received less attention, naming quantum computing, European defense, and equipment rental as examples. He also said he sees long-term potential in quantum computing and views the field as a possible direction for the next round of competition in computing technology, according to TheStreet.