Multi-theme index outpaces Mag 7 amid AI growth | Insights | Bloomberg Professional Services

Meanwhile, the China Tech 8, a company basket created by Bloomberg Intelligence and including companies such as Alibaba Group Holding, Baidu, and Pinduoduo Inc, gained 42%, but rising trade tensions have since slowed the momentum of that rally.

Notably, as the chart below shows, leadership dynamics have shifted: Intel, Alibaba and Baidu now occupy the chart’s upper-right corner, signaling rising strength. Meanwhile, Meta, Nvidia and Microsoft have slowed. The scatter chart uses proprietary indicators of relative performance of securities versus the benchmark. The X-axis shows the RS-ratio, measuring strength. The Y-axis shows RS-momentum, measuring direction and pace of the RS-ratio line.

Among firms holding the most cash, Alibaba led with a 99% jump and Tencent followed with 52%. Amazon and Apple moved the other way, posting declines. The rise of AI enablers like Samsung, Engie, Broadcom and Siemens Energy added to the index’s gains.

Bloomberg Intelligence notes that index members hold roughly $410 billion in cash, giving them the capacity to accelerate growth across themes including AI, disruptive energy and robotics. Since 2018, they’ve already funneled about $850 billion into deals across public and private markets, underscoring their willingness to reinvest in innovation.

To see rotation of leadership momentum in Multi-Thematic Index, run Relative Rotation Graph using RRG function on the Bloomberg Terminal.

To analyze returns, cash holdings, forecast growth and valuations run BMULTIT Index WATC for a view of multi-thematic index fundamentals.

For the latest Bloomberg Intelligence thematic research, run BI THEM on the Bloomberg Terminal.

To analyze the characteristics of BMULTIT Index’s outperformance, run BMULTIT Index PORT WS /I

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