The artificial intelligence revolution is the “biggest platform shift since electricity” and will therefore bring investment opportunities to smaller tech companies that are closing in on the big tech giants, a British fund manager said.
“We firmly believe that the winners of this new technology cycle that actually started with the ChatGPT moment (and the AI revolution) 18 months ago, two years ago, will not be the same as the last technology,” said Liontrust Asset Management lead fund manager Clare Pleydell-Bouverie told CNBC’s Arjun Kharpal last week.
“What we’re really looking at are the opportunities below the top seven,” Priddel-Buffry said, referring to a group of large-cap technology stocks that include letter, Amazon, apple, Yuan, Microsoft, NVIDIA and Tesla.
She said many technology companies are ripe for investment in artificial intelligence applications, which fund managers describe as an emerging club of high-value companies and one of many different layers of the broader artificial intelligence industry that are evolving.
“This year we are very focused on the artificial intelligence infrastructure layer of this new technology stack,” she said.
Pleydell-Bouverie warned ardent AI investors, “You have to build this new computing infrastructure before you can monetize it.” This includes silicon wafers, semiconductor equipment and more Applied Materialsand the companies responsible for laying underground cables and networks, she said.
“so, Broadcomof, of Amphenolof, of MangThese are really important building blocks for the world to expand this artificial intelligence infrastructure. On top of that, you have model providers. For the most part, we think of these players as being quite commoditized…it’s a complete arms race to build these large base models.
At the bottom of the AI application-making “stack” are engineering firms “who bring AI to companies and customers,” Pleydell-Bouverie said, adding: “The value currently is still in the AI infrastructure layer, but we see to, moving up the stack into next year.
Nvidia is a ‘major beneficiary’ of the artificial intelligence boom
Pleydell-Bouverie believes Nvidia will be a key player in the AI revolution by 2025 and will appleEmerging as a dominant player during the smartphone transformation.
However, to understand Nvidia’s role in 2025, investors need to look at the Big Seven company through a different lens.
“The main misconception about Nvidia is that it is a chip provider. View the company through that framework… view the company through a backward-looking hyperscale capex (capital expenditures) framework It’s a fundamentally wrong way to look at this company,” Plaidl-Buffry said.
Apple co-founder Steve Jobs is credited with integrating a failing operating system with sleek hardware in the mid-1990s, ultimately capitalizing on the turn-of-the-century smartphone boom. laid the foundation.
Pleydell-Bouverie sees Nvidia’s acceleration as similar to Apple’s.
“Nvidia is really positioning itself as the operating system for this new artificial intelligence software that we’ll really start to see enter the market starting next year,” she added.
Nvidia is a major beneficiary of the current artificial intelligence boom, and its next-generation artificial intelligence chip Blackwell is now in the spotlight. By 2024, the company’s share price has nearly tripled so far – Up more than 180% year to date — making it world No. 1 most valuable company.
