AI build-out names face multiple compression
The guest argued that secondary AI build-out beneficiaries like utilities, gas turbine manufacturers, and software platforms face near-term downside as estimate revisions fail to justify high multiples.
The argument
He noted that companies like Oracle and GE Vernova have experienced massive multiple expansion on 'hope,' but are now running into physical bottlenecks and downward CapEx revisions from key customers like CoreWeave.
The thesis, stress-tested
✓ What validates it
- ✓Further downward CapEx guidance from specialized cloud providers
- ✓Missed earnings or lowered guidance from utility and infrastructure providers
▸ Risks discussed
- ▸Re-acceleration of cloud infrastructure spending
- ▸Easing of power grid connection bottlenecks
Hear it yourself
"Jordi also lays out a framework for navigating volatility in sectors tied to the AI build out, including how to handle 20 to 30% drawdowns and why estimate revisions matter more than multiple expansion from here."
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