Singapore's state-owned investment giant Temasek's chief investment officer Rohit Sipahimalani stated that an unwinding of the artificial intelligence (AI) trade poses the biggest risk to markets, though he doesn't see it as imminent but expects potential bumps in 2027. Sipahimalani noted that AI has been a key force keeping U.S. stocks near record highs, but the market's resilience is heavily dependent on a small group of winners, with roughly half the stocks in the Russell 3000 at least 20% below their June highs. A reversal in the AI trade could be triggered by factors such as tighter regulation due to safety concerns or customers failing to generate sufficient returns from their AI spending. Temasek remains bullish on AI long-term and continues to increase investments in the sector, aiming to raise its public market AI exposure from about 50% to 70%-75% for greater flexibility.