Source: Fortune
Summary
Maverick Capital’s co-CIOs Ben Silver and David Tykocinski discuss the potential end of the easy part of the AI trade and the risks and opportunities that come with it. They believe that the migration of value in the AI trade is about to reverse, with a shift from hardware and infrastructure to enterprise software and applications. They also see opportunities in life science tools and the potential for M&A activity in the sector. However, they are cautious about the risks of commodification in the hardware space and the impact of China on the AI trade.
Our Reading
The numbers tell one story.
Maverick Capital’s co-CIOs are looking at the AI trade and seeing a more complicated picture. They believe that the easy part of the trade may be ending, and that the migration of value is about to reverse. They see opportunities in life science tools and the potential for M&A activity in the sector. But they are also cautious about the risks of commodification in the hardware space and the impact of China on the AI trade.
The air pocket risk is real, and the rotation away from semiconductors and toward enterprise software is already underway. But for Silver and Tykocinski, the impact of AI on the world over the next 10-20 years is still profound, and the open-ended upside is what excites them.
It’s just getting harder, and that’s when the edge of deep fundamental research starts to matter most.
And that’s when the next generation of Tiger Cubs will truly be tested.
As the AI trade enters a new phase, the real challenge begins.
Author: Evan Null
