A skeptical look at AI investment

Bullish

• $INFRASTRUCTURE PROVIDERS— Positive outlook on infrastructure providers due to ongoing demand and investment.

  • “Keep buying the infrastructure providers... I've never seen a stock that goes down only because it's expensive.”

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• $NVDA— Nvidia's unique position in providing GPUs for AI makes it a strong investment.

  • “Right now Nvidia is the only person that can provide GPUs that power AI, and that's why AI is so expensive.”

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• $AMZN— Amazon's potential for returns from the current CapEx cycle is promising.

  • “Eric adds that the potential for returns from this CapEx cycle seems more promising than even previous cycles given that incumbents with low cost of capital and massive distribution networks and customer bases are leading it.”

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• $GOOGL— Google's potential for returns from the current CapEx cycle is promising.

  • “Eric adds that the potential for returns from this CapEx cycle seems more promising than even previous cycles given that incumbents with low cost of capital and massive distribution networks and customer bases are leading it.”

    Alison·0:00Hear it
• $MSFT— Microsoft's potential for returns from the current CapEx cycle is promising.

  • “Eric adds that the potential for returns from this CapEx cycle seems more promising than even previous cycles given that incumbents with low cost of capital and massive distribution networks and customer bases are leading it.”

    Alison·0:00Hear it
• $SEMICONDUCTOR COMPANIES— Continued investment in semiconductor companies due to high demand and ongoing build.

  • “The world's so convinced that this is going to be something significant that there's nobody's even remotely close, in my opinion, to scaling back on the build.”

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• $AMD— AMD's potential to compete with Nvidia in providing GPUs for data centers.

  • “If one wants to argue that we're gonna see costs come down significantly, it's gonna be because other providers like Intel and AMD come alongside NVIDIA and are able to make GPUs that can be used in data centers...”

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• $INTC— Intel's potential to compete with Nvidia in providing GPUs for data centers.

  • “If one wants to argue that we're gonna see costs come down significantly, it's gonna be because other providers like Intel and AMD come alongside NVIDIA and are able to make GPUs that can be used in data centers...”

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Bearish

• $AI TECHNOLOGY— Skepticism about the current cost-effectiveness and applications of AI technology.

  • “We're a couple years into this, and there's not a single thing that this is being used for that's cost effective at this point.”

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  • “There's nothing about AI that's cheap today, right? And you're starting from a very high cost base.”

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  • “Many people wanna say this is the biggest technology invention of their lifetime. I just think that's, to me, almost the silly starting point for all this.”

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  • “Right now, there's very limited applications for how this can be used effectively. Very few companies are actually saving any money at all doing this.”

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  • “I think there's an unbelievable misunderstanding of what the technology can do today. The problems that it can solve aren't big problems.”

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  • “The longer it goes without any applications that are obvious to people or significant applications that are obvious to people, the more challenged.”

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  • “Negative ROI experiments are the first things to go in corporate profit slowdown, so that's what I would really have my eye on.”

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• $AI INVESTMENTS— Concerns about the high costs and unclear benefits of AI investments.

  • “The biggest challenge is that over the next several years alone, we're gonna spend over a $1,000,000,000,000 developing AI... What $1,000,000,000,000 problem is AI gonna solve?”

    Jim·0:00Hear it

Not investment advice.