Functions for the Market
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AI’s expansion across industries powered Bloomberg’s Multi-Thematic Index (BMULTIT) to a 50% gain through October 2025, outpacing the Mag 7 and the Bloomberg World Index by over 30 percentage points.
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Broader exposure across multiple sectors and regions delivered stronger, more balanced returns than concentrated bets on major U.S. tech stocks.
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Backed by $410 billion in cash reserves and $850 billion in deployed capital since 2018, index members could be well placed to sustain momentum in AI, disruptive energy and robotics.
Background
In 2024, the spotlight was on the soaring stocks of the Magnificent 7 tech giants. In 2025, the focus has evolved from big tech dominance to AI adoption spanning multiple themes and regions.
Bloomberg’s Multi-Thematic Index (BMULTIT), made up of innovation leaders engaged in four or more Bloomberg Intelligence themes, outperformed the Bloomberg World Index (WORLD) by over 30 percentage points this year, Bloomberg Intelligence analysis shows. Investors exposed to themes across multiple sectors, and geographies saw stronger returns, improved risk-adjusted performance and more diversification than those concentrated solely in the Mag 7 (BM7T).
PRODUCT MENTIONS
The issue
The Multi-Thematic Index advanced 50% through October 15, driven by AI models moving from concept to reality and consuming heavy resources in the process. Returns for the Mag 7 and the broader World indexes lagged at 17%, constrained by valuation concerns. Bank of America’s investor survey found that fears of an AI bubble topped risk lists, prompting diversification.
Meanwhile, the China Tech 8, a company basket created by Bloomberg Intelligence and including companies such as Alibaba Group Holding, Baidu, and Pinduoduo Inc, gained 42%, but rising trade tensions have since slowed the momentum of that rally.
Notably, as the chart below shows, leadership dynamics have shifted: Intel, Alibaba and Baidu now occupy the chart’s upper-right corner, signaling rising strength. Meanwhile, Meta, Nvidia and Microsoft have slowed. The scatter chart uses proprietary indicators of relative performance of securities versus the benchmark. The X-axis shows the RS-ratio, measuring strength. The Y-axis shows RS-momentum, measuring direction and pace of the RS-ratio line.
Meanwhile, the China Tech 8, a company basket created by Bloomberg Intelligence and including companies such as Alibaba Group Holding, Baidu, and Pinduoduo Inc, gained 42%, but rising trade tensions have since slowed the momentum of that rally.
Notably, as the chart below shows, leadership dynamics have shifted: Intel, Alibaba and Baidu now occupy the chart’s upper-right corner, signaling rising strength. Meanwhile, Meta, Nvidia and Microsoft have slowed. The scatter chart uses proprietary indicators of relative performance of securities versus the benchmark. The X-axis shows the RS-ratio, measuring strength. The Y-axis shows RS-momentum, measuring direction and pace of the RS-ratio line.
Among firms holding the most cash, Alibaba led with a 99% jump and Tencent followed with 52%. Amazon and Apple moved the other way, posting declines. The rise of AI enablers like Samsung, Engie, Broadcom and Siemens Energy added to the index’s gains.
Bloomberg Intelligence notes that index members hold roughly $410 billion in cash, giving them the capacity to accelerate growth across themes including AI, disruptive energy and robotics. Since 2018, they’ve already funneled about $850 billion into deals across public and private markets, underscoring their willingness to reinvest in innovation.
Tracking
To see rotation of leadership momentum in Multi-Thematic Index, run Relative Rotation Graph using RRG <GO> function on the Bloomberg Terminal.
To analyze returns, cash holdings, forecast growth and valuations run BMULTIT Index WATC for a view of multi-thematic index fundamentals.
For the latest Bloomberg Intelligence thematic research, run BI THEM <GO> on the Bloomberg Terminal.
To analyze the characteristics of BMULTIT Index’s outperformance, run BMULTIT Index PORT WS /I
For more information on this or other functionality, click here to request a demo with a Bloomberg sales representative. Existing clients can press <HELP HELP> on their Bloomberg keyboard.