A Fundamental Look at the Current AI Supercycle

In this episode, guest host, U.S. Equity Portfolio Manager Justin Howell is joined by Technology Analyst Victor Anthony to discuss the evolution, impact, and investment trends surrounding artificial intelligence (AI). The conversation covers the rapid adoption of generative AI technologies like ChatGPT, the competitive responses and capital expenditures of major technology companies, the cost and complexity of building data centers, and the shifting bottlenecks from compute hardware to power infrastructure. Justin and Victor analyze the roles of key industry players such as Nvidia, AMD, and the "Magnificent Seven," explore how AI is reshaping stock market returns and business models, and debate the sustainability and potential risks of the ongoing AI investment cycle. The episode concludes with insights on what signals might indicate an AI bubble and the long-term implications for returns on invested capital in the sector.

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