Latest / Best of Business / Andrew Curtayne: Milford Asset Management expert on the tech companies catching the attention of investors

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Andrew Curtayne: Milford Asset Management expert on the tech companies catching the attention of investors · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks B follow
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  Speaker 2: Andrew Curtaine, Milford Asset Management, Andrew Good Evening.
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  Speaker 3: Eden, Ryan, how are you very well?
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  Speaker 2: Thank you. We've been watching the tech stocks and we've
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  Speaker 2: been watching the AI stocks leading this market higher and
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  Speaker 2: higher over in the US. What's the latest investors, you know,
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  Speaker 2: what companies have you been looking at? What are investors
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  Speaker 2: focus on?
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  Speaker 3: You know, they really continued to rally pretty much each
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  Speaker 3: month you see them higher. There's been over the last
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  Speaker 3: few weeks, has been number of key pieces of a
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  Speaker 3: news couple of US result based You had two large companies,
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  Speaker 3: one called Oracle that people will be familiar with Larry
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  Speaker 3: Ellison sort of the key shareholder, and that stot that
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  Speaker 3: had an incredible result where they now it'ced three hundred
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  Speaker 3: billion dollars of new contracts for AI cloud services. That's
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  Speaker 3: just like ridiculously big numbers, which the Chefrice rallied over
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  Speaker 3: the two percent on that one day alone put Oracle
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  Speaker 3: into around about the top ten largest companies in the US.
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  Speaker 3: And Larry Ellison himself owns about forty five percent of
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  Speaker 3: that business, so I think very shortly went past elon
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  Speaker 3: Musk as the richest man in the world. So yeah,
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  Speaker 3: fantastic performance from that business. Another company called Broadcom, which
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  Speaker 3: which sells chips, which largely compete with Navidia, has also
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  Speaker 3: had a strong results and upgraded numbers. And amongst most
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  Speaker 3: other pieces of news, Google sort of getting its kind
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  Speaker 3: of inet its mojo going with Gemini, which is its
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  Speaker 3: AI product, and that's geting a lot of tensions. So
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  Speaker 3: share price has been doing well there. And then just
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  Speaker 3: two days ago Navidio made an announcement that they're going
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  Speaker 3: to invest one hundred billion dollars in open Ai, which
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  Speaker 3: is the company that owns chat GPT, and that got
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  Speaker 3: the market pretty excited, and Navidia shares about three or
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  Speaker 3: four percent on That is.
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  Speaker 2: The worry that you've got huge investments some of these companies,
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  Speaker 2: and then one will invest in and the other the
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  Speaker 2: other will invest back in that one, and it could
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  Speaker 2: be creating some kind of bubble. I mean, even just
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  Speaker 2: the level at which the market's rising, it does it
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  Speaker 2: indicate bubble territory.
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  Speaker 3: Yeah, there's certainly been a growing view from some investors
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  Speaker 3: that were starting to look bubble like and they make
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  Speaker 3: comparisons to the dot com or the Internet bubble era
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  Speaker 3: that happened in the late nineties early two thousands. One
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  Speaker 3: piece that Navidia invested I mentioned which she used to
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  Speaker 3: correctly point out on the secularity there. It is a
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  Speaker 3: little bit circular. And what they're doing is they're investing
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  Speaker 3: one hundred billion dollars in open Ai, who was then
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  Speaker 3: taking that one hundred billion dollars and using it to buy,
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  Speaker 3: amongst other things, chips from Navidia. So it's kind of
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  Speaker 3: like the given the company that to buy their own product.
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  Speaker 3: So a bit circular, and it causes concern. And there
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  Speaker 3: was elements of that or that was happening in various
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  Speaker 3: ways in the Internet bubble. And then of course the
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  Speaker 3: evaluations of some of these stocks are getting getting higher,
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  Speaker 3: so you're certainly seeing a grown and yeah, of course
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  Speaker 3: the people are getting a little bit concerned and some
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  Speaker 3: people you see some investors that have taken a little
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  Speaker 3: bit of risk off some of their stocks.
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  Speaker 2: It's interesting because when you look at that from a
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  Speaker 2: practical personal perspective, you know, I look at it and
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  Speaker 2: I think, well, I can see why it's going up,
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  Speaker 2: because if I look at my use of AI just
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  Speaker 2: in the past six months or they alone a year
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  Speaker 2: is also going up. So I'm like, maybe they're you know,
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  Speaker 2: it's justified.
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  Speaker 3: Yeah, that's that's certainly what all the big companies in
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  Speaker 3: the world are the Microsoft's and Google's amazons, and that's
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  Speaker 3: what they believe, right. They think the AI use case
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  Speaker 3: is there, they think it's getting the use cases are
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  Speaker 3: getting better and better, and you certainly are seeing that.
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  Speaker 3: I mean, Chichibt is so much better now than it
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  Speaker 3: was two years ago when it came onto the scene,
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  Speaker 3: and so they convinced that AI is the next technological jump.
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  Speaker 3: Therefore they're willing to invest hundreds of billions of dollars.
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  Speaker 3: So currently there's this estimated about six hundred billion per
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  Speaker 3: anim has been invested into AI data centers. That number
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  Speaker 3: is expected to grow potentially to one one or just
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  Speaker 3: over one trillion dollars over the next couple of years.
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  Speaker 3: And even a big sit at AI ball at Jensen Huang,
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  Speaker 3: who's the CEO of Navidia, is putting out numbers saying
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  Speaker 3: we there might be three trillion dollars of annual spend
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  Speaker 3: on AI data centers, which is phenomenal. You're talking about
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  Speaker 3: three trillion, You're talking something like three to four percent
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  Speaker 3: of global GDP. So, well, you've got these companies who
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  Speaker 3: believe in AI and believe in the product, then they
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  Speaker 3: can keep putting the money and the profitable companies, largest
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  Speaker 3: in the world, they can keep fueling this kind of spending.
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  Speaker 2: Spring fascinating stuff. Andrew, appreciate your time tonight, Andrew Kurchain,
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  Speaker 2: Milford Asset Management.
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