We were featured in The Nightly discussing our investment strategy in AI-related opportunities as a global equities fund. Our co-founder Thomas Rice shared insights on why we believe the AI trade remains in its early stages, despite significant market gains in semiconductor and memory hardware companies. We maintain significant positions in computer memory hardware giants SK Hynix and Micron, viewing them as undervalued given the structural shift towards AI infrastructure. As Thomas explained:
The [AI] models are getting smarter, but intelligence is really also about how much memory you can fit in your head.
Our investment thesis centres on the historically cyclical nature of memory hardware demand, which we believe has caused the market to undervalue these companies' growth potential. Thomas noted:
Memory has been such a boom and bust industry in the past, but I think the current cycle will last longer than people expect [as demand for AI services expands].
Thomas sees reasonable valuations in companies like Micron, trading at five times profits, and even Nvidia at 28 times profits. The article explores how the estimated $3.6 trillion in AI infrastructure investment expected in 2026 is creating opportunities for investors who can identify companies positioned to benefit from this structural shift. To read the article, click the link below.