What's Driving the Rally in AI Stocks?

Watch on YouTube ↗  |  June 01, 2026 at 14:55  |  5:40  |  Bloomberg Markets
Speakers
Ozan Tarman — Global Macro Vice Chair, Deutsche Bank

Summary

Ozan Tarman from Deutsche Bank discusses the AI-driven stock rally, expressing cautious optimism on semiconductor stocks due to strong earnings and light professional positioning. He also expects a calmer summer for UK gilts, while highlighting risks from inflation data and Middle East tensions. The conversation covers bond market dynamics, positioning, and key event risks like June CPI.

  • AI semiconductor stocks continue to rally on strong earnings and revenues.
  • Professional positioning in AI stocks is only 50-60%, leaving room for further upside.
  • US 10Y yield and inflation expectations remain key risks for equities and bonds.
  • UK gilts have rallied recently and the upcoming by-election is a positive factor.
  • Ozan Tarman expects UK gilts to have a calmer summer barring oil price spikes or Iran escalation.
  • Fast money is heavily positioned in paid rates and long dollars, creating vulnerability.
  • June CPI data is flagged as a major risk that could revive the 2022 inflation narrative.
  • Geopolitical tensions in the Middle East are a threat to the AI-driven risk-on sentiment.
Trade Ideas
Ozan Tarman Global Macro Vice Chair, Deutsche Bank 0:18
AI chip stocks have room to rally.
AI semiconductor stocks have very strong revenues and earnings, strongest in five years, yet professional positioning is only 50-60%. As long as earnings continue to come in, there is room to go higher. Dip buyers will support any correction. Key threats are a spike in US 10Y yields due to inflation expectations and an Iran/Hormuz escalation, but the fundamental story remains intact.
AI semiconductor stocks MED
Ozan Tarman Global Macro Vice Chair, Deutsche Bank 5:33
UK gilts will have calmer summer.
UK gilts have already rallied 40-45bp in the last two weeks. The upcoming by-election and positive fiscal rule stance are supportive. Unless there is an escalation in Iran or oil spikes above $120, the summer should be calmer for UK gilts, implying yields will not spike further.
UKGILT LOW
Up Next
0:31
Coming June 5th: Bloomberg Money with Tom Keene and Scarlet Fu
Bloomberg Markets · Jun 01
47:43
How Far Will SpaceX's Good News Go? Space and Aviation Stock Big Three Investment Point Summary | Myung Min-jun, Kang A-rang, Shin Eol [Stock Beginner Rescue Squad]
3PRO TV (삼프로TV) · Jun 01
4:21
David Faber on the $16 billion Stargate AI data center
CNBC · Jun 01
8:30
Truth About the American Profit Machine: Rockefeller's Ruchir Sharma on the tech-driven stock rally
CNBC · Jun 01
58:39
역대급 호재 터집니다! 하반기 계좌 책임질 바이오 히든 종목ㅣ명민준, 강아랑, 이권희 [주린이 구조대]
3PRO TV (삼프로TV) · Jun 01

This Bloomberg Markets video, published June 01, 2026, features Ozan Tarman discussing AI semiconductor stocks, UKGILT. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Ozan Tarman  · Tickers: AI semiconductor stocks, UKGILT