Cheaper, smarter and ever broader uses: AI offers a long growth runway
Artificial intelligence (AI) models continue to get smarter and cheaper, spurring adoption and expanding the total addressable market. Pamela Hegarty and Derek Glynn, Co-portfolio Managers of BNPP AM’s disruptive technology strategy provide Daniel Morris, Chief Market Strategist, with their expert views of the current AI industry and its investment potential, not least in supporting both training and inferencing applications.
While there may be some areas of excessive optimism, infrastructure spending has generally been in line with demand and mostly funded from operating cash flows. AI products and services continue to be monetized rapidly. “Mindful of valuations, we try to avoid areas of extreme optimism, but we continue to find attractive stock-specific opportunities. We think there is still a long growth runway ahead for companies that could benefit from the broad theme of AI.”
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