In recent months, global equity markets have seen a significant boost, with emerging economies, Europe, and Japan showing remarkable performance. Since early 2025, emerging markets have delivered returns of 68 percent, Europe 45 percent, and Japan 44 percent. Meanwhile, the U.S. equity market has lagged with returns of 26 percent.

The disparity in market performance can be partly attributed to a series of planned large-scale initial public offerings (IPOs) by major firms like Anthropic, SpaceX, and OpenAI. These IPOs are set to impact U.S. market dynamics further.

The narrative within financial sectors continues to emphasize American leadership, particularly in artificial intelligence (A.I.). The belief in American exceptionalism remains strong, with investors confident in its substantial role in global capitalism and technology.

Historically, this belief stems from foreign markets trailing the U.S. for decades. The U.S. has consistently reached new highs, though European equities have only recently matched their 2007 levels pre-global crisis. Japan’s Nikkei overcame its 1989 peak only in 2024. Emerging market indexes, stagnant for two decades, are now progressing.

The global market’s growth isn’t merely about catching up. Corporate earnings worldwide surged notably in 2025, influenced by the global A.I. infrastructure boom. This requires understanding the investment flow into A.I. from U.S. tech firms and its effects internationally.

Contrary to widespread views, A.I. isn’t solely an American tale. Building out A.I. infrastructure demands a complex international supply chain. Central to it are Nvidia’s chip designs (California), ASML’s precision lithography equipment (Netherlands), and TSMC’s manufacturing facilities spread across Taiwan, Japan, China, and America. These companies dominate A.I. chip production globally.