Morningstar CEO Kunal Kapoor told The Economic Times investors may expect artificial intelligence to lift earnings too quickly, while separately warning that concentrated AI-linked gains leave global markets dependent on fewer outcomes.
The Economic Times reported that Kapoor made the remarks in an interview during a recent visit to Mumbai. He said investors may be counting on AI investment to produce revenue growth, wider margins and productivity improvements quickly. “That may happen, but rarely in a straight line,” Kapoor said.
A Morningstar survey released Sept. 16, 2026, found that 65% of asset owners viewed AI-related market concentration as a macroeconomic concern. Another 73% pointed to the combined pressure of AI valuations and capital spending, while 63% cited reliance on a small number of major technology providers. The survey included more than 500 asset owners across 11 countries, representing more than $20 trillion in assets.
Morningstar’s 2026 Global Outlook put the 10 largest U.S. stocks at about 35% of the U.S. market as of Sept. 30, 2025, compared with 18% a decade earlier. The report said concentrated market leadership can leave portfolios more exposed to shocks, while cautioning that concentration by itself does not predict a downturn. It also noted that investors who withdrew as concentration rose after 2015 missed years of subsequent gains.
The outlook pointed to the dot-com period as a historical comparison: the top 10 U.S. stocks’ share of the market increased from 15% in 1997 to 24% in 2000. In the report’s account, expected profits fell short before the market’s sharp decline.
