Source: Finance Association
① Max said AI is transformative, but it's difficult to determine which stock will be the winner; ② Many people are betting that the AI wave will boost multiple industries from semiconductors to infrastructure; ③ “Every bubble starts with a common belief,” he said.
Oak Capital co-founder Howard Marks (Howard Marks) said a few days ago that artificial intelligence (AI) may eventually change the world, but that alone will not determine the success of related assets.
In an interview, he said, “Every bubble starts with a common belief. Everyone believes in AI, and they charge a high price for the beneficiaries of AI. It turned out to be a bit excessive.”
When it comes to artificial intelligence, Max acknowledged the technology's transformative potential, but he himself can't say whether the “AI beneficiaries” are underestimated or overrated. Instead, the AI boom reminded him of the advent of the internet 25 years ago, when the internet also boosted the market.
“Everyone is convinced that the internet is going to change the world. However, in the TMT (Telecom, Media, and Technology) bubble in the late 90s of the last century, the vast majority of internet and e-commerce stocks that once benefited from this kind of thinking are now worth nothing.” he said.
The billionaire investor also said, “So I think artificial intelligence will be very important; this is the easy (solution) part. But knowing how it should be reflected in the portfolio is the difficult part.”
Meanwhile, Wall Street is struggling to meet this challenge. Just last week, Goldman Sachs outlined the industries it believes will win in the long run, including semiconductor manufacturers and security software developers.
Morgan Stanley analyst Stephen Byrd said that AI is changing the data center landscape and uncovering a new infrastructure requirement — power generation companies. This is a hidden investment opportunity, but it is currently underestimated by the market. “Opportunities are around infrastructure... in everything from power generation, power electronics, data centers, etc. — the growth rate will accelerate,” he said.
Investment legend Steve Eisman is also betting heavily on infrastructure, hoping to get a boost from artificial intelligence's electricity demand. He previously explained that the new GPU requires three times as much power as traditional hardware. Accelerated demand for electricity will increase spending on grid improvements and operating companies.
In light of the more immediate impact, Bank of America (Bank of America) raised its S&P 500 target last month and said AI spending is an important driver of growth.
However, Max warned investors not to rely too much on Wall Street predictions.
“Prices aren't necessarily right; they're just the best that consensus can achieve.” he said.
editor/tolk