Global business and political leaders are set to converge in Davos, Switzerland next week for the World Economic Forum, where Wedbush analysts believe the rapid acceleration of artificial intelligence is expected to dominate discussions amid a complex geopolitical and economic backdrop.
The analysts wrote that the conference will highlight what it described as an “AI Revolution arms race in motion,” with major technology companies including Google, Amazon, Apple, IBM, Meta, Microsoft, Nvidia and Palantir expected to play a central role in the dialogue.
The analysts argued that AI has become a strategic priority for governments and corporations alike, particularly as competition between the US and China intensifies.
“In this tenuous geopolitical backdrop, there is an arms race going on between the US and China around AI technology with the US leading China for the first time in 30 years on the technology front in our view,” the analysts wrote.
Wedbush expects US President Donald Trump’s presence at Davos to further focus attention on the role of American technology companies in shaping what it characterized as the fourth industrial revolution.
They believe the participation of US tech leaders is likely to underscore Washington’s influence over the pace and direction of global AI development, even as governments worldwide ramp up spending on AI initiatives into 2026 and beyond.
At the same time, the firm cautioned that infrastructure constraints, particularly power generation, pose a growing risk to the AI buildout. “The biggest threat to the AI Revolution in our view is not circular financing, too big to fail theories, cap ex spending, but rather energy shortages,” the analysts wrote.
They added that while China is significantly ahead in energy infrastructure development, the US faces a delicate balancing act involving technology companies, government policy, and long-term energy investment.
Wedbush also noted that trade policy is likely to feature prominently in discussions at Davos, particularly as companies assess the impact of tariffs on technology supply chains and capital deployment.
The analysts wrote that they expect conversations around tariffs to intensify ahead of a potential US Supreme Court ruling that could weigh on current US tariff policy, adding another layer of uncertainty to the global technology and AI investment landscape.