AI investment to see 'aggressive expansion': analyst

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The AI ​​revolution has sparked a market boom, with investors looking for opportunities in sectors beyond the obvious choices like semiconductors. Tejas Desai, Assistant Vice President and Research Analyst at Global X ETFs, joins “Asking for a Trend” to share his insights on AI investing.

Desai has described the AI ​​trade as “a moment of mass disruption”, highlighting the technology's impact and impact on the global economy. He draws parallels between the development of AI and the Internet, suggesting that markets are currently in an “infrastructure-building phase,” making semiconductors a core investment focus.

However, Desai “expects an aggressive expansion” of AI-related investment opportunities. He advises investors to consider three specific sectors: data centers, cloud software and applications, and energy plays, particularly uranium and copper.

For more expert insight and the latest market action, click here to watch this full episode of Asking for A Trend.

This post was written by Angel Smith

Video transcript

The rapid rise of artificial intelligence provides a lift for chip suppliers.

By the end of this decade, annual spending on I chips is expected to grow at a compound annual growth rate of more than 30%, according to Global X.

However, semiconductor makers aren't the only ones standing to benefit from AI serge teos deai former assistant vice president and research analyst at Global.

Teos it's great to have you on the show.

Um, I ask you when you talk about I teos here.

You know, this is, I mean, probably the hottest trend among investment traders, investors.

They want to learn about it, they want to study it, they want to find ways to play it.

Do you think all this excitement makes sense to you or do you think we've gotten a little ahead of ourselves here?


Ah, it's great to have Josh here.

Oh, then I think we see this as a moment of massive disruption when it comes to the broader impact of artificial intelligence on the global economy.

Actually, uh, you know, it's a lot like the Internet.

Um, you know, enables new experiences and new products and services to be built here.

And we are currently in the infrastructure building phase of this semiconductor opportunity.

And that's what, I think, has done pretty well for investors across the board, over the last 12 months, a lot of it has been driven by the media and a few select stocks here and there.

But we expect an aggressive expansion as investment dollars in infrastructure of this basic nature continue to, uh, continue.

And I think that, you know, this is a really good time to think about, you know, the benefits that you get.

For example, if you've come across NVIDIA, if you've come across some of those names and even the big tech universe across the board and you really start thinking about it, Where will I get this growth in the next 18? Up to 24 months?

And that's, you know, a large majority of the conversations that we're having with our customers as well.

Um, and when you look at the universe, you know, we generally, um, recommend investors look at three specific areas, especially as they look at this next round of development with AI. Think about.

You know, number one is obviously data centers and the whole digital infrastructure value chain.

It's not just about building these large-scale, huge processing facilities, but also really closing the loop in terms of delivering these experiences to end users as I expand on the cases.

Secondly, we encourage investors to pay some attention to sectors such as cloud software, cloud applications, cloud infrastructure as well as cyber security, which appear to be very attractive.

And if you don't want to play it from a technology standpoint, you're definitely looking at that energy, you know, uranium, copper, as well as some other areas out there.

Um, you know, especially as this power-hungry dynamic form is for artificial intelligence across the board, but a very investment-worthy, uh, even here, in the second half of this year, uh, Although we have seen A great rally so far this year.

So let's, um, let's take some pictures here.

Let's say a data center, your clients come to you, they want a way to play it.

What do you tell them?


Look, our approach is, um, you know, it's too early to pick one or two to go with that particular theme.

You know, it's going to be a very secular construct.

I mean, if you look at the computing infrastructure that we have around the world right now that's powering the global digital economy, we're really talking about at least a trillion dollars worth of infrastructure. Have been, right?

Chips, networking solutions.

Um, you know, a lot of memory storage that's housed in these huge, huge hyperscale, you know, processing facilities all over the world.

So our approach is really to take a very passive approach.

You know, we have, for example, a data center and digital infrastructure ETF that's also picking up a lot of interactions across the board.

Um, but what we expect is a secular build that will result in increased cap capacity.

And that will probably translate into an opportunity for many of these, you know, data center companies as well as companies that provide the components that go into those data centers, to really drive their revenue from that. It provides an opportunity to expand at a much faster rate. Just ripe in the market, copper.

Now, this is interesting.

Why is copper a way to play the AI ​​theme?

And if you're interested, how do you play it?

Do you only buy red metal?


So, um, you know, copper generally has a pretty good correlation with economic expansion.

So basically, if you're building massive data center capacity, if you're building data center facilities, well, if you're again, we have the electrification of automobiles on the horizon, or the general There is only one infrastructure upgrade currently underway. sugar cane.

You know, we're investing in power grids.

We are investing in transmission facilities.

All of that basically requires copper, which is really in a position where, um, you know that commodity is in a very, uh, position, here we've seen copper prices for some time on secular uptake. As seen, prices have definitely pulled back, and I think that presents an interesting dynamic for investors to consider.

Um, consider commodities as a whole.

Um, again, we, uh, here, offer a copper miners ETF, by COPX cop selector.

But it has been a very popular product for us so far this year as well.

Um, but generally we're seeing that um, again, um, the copper conversation as well as U and other commodity offerings that we offer here as well.

So then, okay.

I think this is the perfect time to take a step back.

If you're behind some of these big tech names NVIDIA is driving that AI speed in the markets.


Take a step back and think.

Where else would I find this, uh, opportunity for growth?

And there are a lot of, um, you know, undervalued sectors that we think investors should be looking at in Taos.

Great gossip.

Interesting choices and strategies.

Thanks for joining us.



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