LONDON: Experienced tech investors are hunting for undervalued opportunities in an over-valued space. At stake is how best to invest in the potential of Artificial Intelligence (AI), which took a leap forward in November when
, which makes computer chips that train AI systems, have almost doubled since ChatGPT's launch. The company's stock market value at roughly US$940 billion is more than double that of Europe's Nestle. Nvidia surged some 25 per cent on Thursday alone after forecasting a sales jump.
Consultancy PwC sees AI-related productivity savings and investments generating US$15.7 trillion worth of global economic output by 2030, almost equivalent to the gross domestic product of China. "It's going to be as transformative as the internet, as the mobile internet, as the mainframe computer was," said Alison Porter, a tech fund manager at Janus Henderson, whose funds have positions in Nvidia, with Microsoft as their largest holding.She favours big tech groups like Microsoft and Alphabet because they have"strong balance sheets", that make them"able to invest in many different technology advances", including their recent focus on AI.
GAM's Hawtin said he has also hunted out companies that provide the"picks and shovels", necessary for enabling new AI technology. Jon Guinness, tech portfolio manager at Fidelity International, said management consultancy Accenture is in his portfolio because as businesses consider how to use AI,"I strongly think you call in the experts".STICKING TO BIG TECH
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