Temasek warns an AI trade unwind is the biggest risk facing markets now

Singapore's Temasek says an unwinding of the artificial intelligence trade poses the biggest risk to markets, though it does not see that as imminent.

Rohit Sipahimalani, Temasek's chief investment officer, said AI has kept U.S. stocks near record highs despite rising Treasury yields, while roughly half the Russell 3000 stocks sit at least 20% below their June highs.

Temasek remains bullish on AI long term, aiming to raise its publicly traded AI exposure from about half to 70% to 75%.