408. Is AI in a bubble?

AI spending continues to reshape markets, but after several years of extraordinary growth, are the most obvious opportunities becoming harder to find? We discuss signs of bubble-like behaviour, with Mikhail Zverec and Graeme Bencke, co-managers of the WS Amati Global Innovation fund, who elaborate on the slowing growth in AI capital expenditure and why the next phase could favour less obvious beneficiaries. The interview explores physical AI, robotics, industrial automation and the specialist companies providing the infrastructure, sensors and software behind them. We also examine why parts of the software market may have been written off too quickly, before moving beyond AI to uncover innovation across drug discovery, laboratory automation, radiopharmaceuticals, defence, drones, cyber and space.

What’s covered in this episode: 

• Are we in an AI bubble?
• Where we are in the AI investment cycle
• Why AI CapEx growth could slow
• Moving beyond the obvious AI winners
• The rise of physical AI
• Robots, cobots and warehouse automation
• The infrastructure behind industrial AI
• Sensors, machine vision and connectivity
• Why software may have been oversold
• The value of deep domain expertise
• AI’s impact on drug discovery
• Robotics inside the laboratory
• The potential of radiopharmaceuticals
• Defence, drones, cyber and space
• Finding innovation beyond AI

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Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.