Howard Marks Warns Investors Against Reading AI Market Swings

Howard Marks, co-founder and co-chairman of Oaktree Capital Management, said investors should not use market swings as a guide to artificial intelligence investments because the technology is unusually difficult to predict.

Marks said Oaktree is concentrating on special situations tied mainly to AI infrastructure, including data centers and AI factories. He identified power supply as a key constraint on the sector’s expansion.

For AI exposure, Marks favors stocks over debt, saying stocks offer substantial upside if investments succeed. His view pairs caution about forecasting AI with a focus on infrastructure opportunities.