Jenny Hardy discusses Big Tech and AI on Bloomberg.

Jenny Hardy, Portfolio Manager at GP Bullhound, commented: “Tech earnings have been fairly resilient this quarter. There are clearly still some ongoing inventory issues but if you take a step back, and look beyond the volatility, beyond some of the macro uncertainty, really, fundamentally, tech is still solving for many of the world’s challenges. And that is really still driving demand for technology products and services.”

She continues: “A lot of this is about the fundamental strength of Big Tech, and I think that AI is the next example of tech’s capability to drive productivity, and we are starting to see some of this AI demand reflected in the fundamental earnings of Big Tech. Big Tech has had a cost cutting agenda. Mark Zuckerberg came out during the start of this year and talked about the “year of efficiency”, and that has been adopted by tech more broadly. They’ve all shown an excellent ability to cut costs, and tech is well placed to cut costs – it typically has high gross margins and strong market positions. That has also been a significant driver of earnings, and will continue to be a significant driver of earnings this year.”

“When we think about investing, we really think about business models and competitive barriers to entry. Now, I think that’s still quite uncertain in lots of AI. But what we do know, and we heard from all of Big Tech reporting last week, is that companies are investing. They are investing huge amounts of capex in AI infrastructure. For us, we play that through the semiconductors. If you look at servers that effectively enable AI applications, either training servers, inference servers, they all require a huge amount of semiconductor content, more GPUs (we own Nvidia), more and faster CPUs (and we own AMD). Both of those companies make their chips at TSMC (which we also own). Those are three companies that will really see fundamental demand, as a result of AI, this year.”

GP Bullhound Tech Thoughts
As part of our Anglo-Swedish public funds team, Jenny holds a prominent role in our weekly Tech Thoughts Podcast and Tech Thoughts Newsletter, which provides an overview of the latest economic developments in international markets. The podcast offers a detailed analysis of the most notable events impacting public markets and is a reliable source of the news and trends affecting the global technology landscape. The newsletter provides in-depth commentary and insights on the latest market updates within various areas including software, semiconductors, gaming, e-commerce, social platforms, and entertainment.

At GP Bullhound, we provide investors with access to category leading technology companies, globally. Our assets under management have a total value of more than $1bn, and our limited partners include institutions, family offices and entrepreneurs. Learn more about our funds here.

Enquiries
For enquiries, please contact:
Jenny Hardy, Portfolio Manager, at jenny.hardy@gpbullhound.com

About GP Bullhound
GP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to the world’s best entrepreneurs and founders. Founded in 1999 in London and Menlo Park, the firm today has 13 offices spanning Europe, the US and Asia. For more information, please visit www.gpbullhound.com.

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