Citi Analyst Foresees AI Infrastructure Persistence

Citi's Japan, Asia North and Australia Cluster and Banking Head Marc Luet has expressed confidence that AI infrastructure will continue to be a major theme in the market. His comments come amid rising regulatory scrutiny, yet he maintains that the sector's long-term potential remains strong. Luet's outlook follows a recent sharp decline in Nextdc shares, which were hit by public backlash over its business practices. The analyst emphasized that while short-term volatility is expected, the underlying demand for AI infrastructure is unlikely to wane. He noted that companies investing in data centers and related technologies are well-positioned to benefit from ongoing digital transformation efforts across industries.