Deepwater's Gene Munster said AI-driven momentum is overpowering geopolitical and macro concerns, keeping markets resilient and shaping sector performance.

AI Momentum Keeps Markets Resilient

Munster of Deepwater told CNBC on Monday that markets are largely ignoring geopolitical tensions and macro uncertainty, emphasizing that AI progress is "much bigger than what is going on geopolitically."

He noted that while inflation and Fed policy once dominated tech investing, AI's rapid transformation now leads sentiment.

Munster added that investors can remain confident because the industry is still early in this cycle, and "the substance of the next five years will exceed that hype," which should continue to support tech stocks.

AI Silicon Demand Signals Early Growth Phase

Munster pointed to strong signals from chip leaders like ASML Holding NV (NASDAQ:ASML) and Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM), which forecast robust growth, as evidence that the AI buildout remains in its early stages.

He highlighted Taiwan Semiconductor's strong growth trajectory and said these updates confirm ongoing demand for AI infrastructure, reinforcing the strength of the "AI silicon trade."

Software Stocks Gain Near-Term Momentum

Munster said software is seeing a short-term rally despite longer-term concerns.

He cited recent gains in software stocks, noting the sector surged after industry commentary and positive signals from companies like Salesforce, Inc (NYSE:CRM).

While he remains cautious about long-term challenges, including potential impacts on employment and growth, Munster said the current environment supports a near-term "positive software trade."

Price Action: ASML Holding shares were down 0.46% at $1469.67 and Taiwan Semiconductor shares were up 0.45% at $367.90 at the time of publication on Tuesday, according to Benzinga Pro data.

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