AI software sell-off is overdone
The guest argued that the recent sell-off in software and SaaS stocks is overdone, as software ultimately drives hardware functionality and the next phase of AI will transition to edge computing and smart devices.
The argument
The guest highlighted that major tech companies have committed nearly $700 billion in capital investment for AI infrastructure, which will benefit database software, infrastructure, and processor providers. He specifically noted that Microsoft remains a strong buy due to its cloud and AI leadership.
The thesis, stress-tested
✓ What validates it
- ✓Big tech earnings showing continued expansion of AI capital expenditures
- ✓Widespread adoption of AI-driven operating systems on mobile devices
▸ Risks discussed
- ▸AI spending could fail to monetize as expected
- ▸Hardware bottlenecks or valuation concerns in the short term
Hear it yourself
"Listen on demand wherever you get your podcasts or watch us live on YouTube. On technology, Ivan finds that joins us with Tigris, and this morning, he survived Boston University finance and accounting, one of the great grinds of, college academics. Ivan, I'm gonna cut to the chase. You've got a very, very constructive note on a, quote, classic shakeout of crowded AI trades. Do you load the boat on Microsoft? What's the character of your enthusiasm to acquire shares? Well, first of all, I I think this negative view of the software stocks is just way overdone. Even Jensen Wong has said that software drives the functionality of hardware."
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