AI and Defense Stocks Triple in Value, Defying Market Slump

A select group of stocks, dubbed "multibaggers," has seen its value triple since the start of 2025. This explosive growth comes as investors pour money into artificial intelligence (AI) and defense companies. Analysts link the trend to two major global factors. First, rapid advancements in AI technology are creating new business opportunities. Second, rising geopolitical tensions are increasing government spending on defense. These sectors are sharply outperforming the broader market. While major indexes have struggled, funds focused on AI and defense have attracted record investments from both individuals and institutions. The term "multibagger" refers to any stock that returns many times its original purchase price. Achieving this in under a year is exceptionally rare. Financial experts caution that such rapid growth may not be sustainable. They warn investors that prices can fall as quickly as they rise. However, the current demand suggests these sectors will remain in focus for the foreseeable future.