00:00 Speaker A
Jensen Wong recently compared the growing AI economy to a five-layer cake. He categorized it into energy, chips, infrastructure, models, and applications. So how can investors leverage all five layers and go beyond the traditional Magnificent 7 stocks to make smart stock picks? We'd like to invite Tony Wang, T-Ro Price Science and Technology Equity Strategy Portfolio Manager. Tony, nice to meet you. Thank you so much for being here. So obviously, one of the biggest voices for AI in general is Jensen Wong. So when he breaks down the various elements and pushes back against the idea of AI as an AI bubble, the market listens to him. Where are we now in this progress and how do you think about it from an investment strategy perspective?
00:52 tony one
Well, I think building AI is still in a relatively early stage. So this is a complete refactoring of how things have been done historically. So I really think that building AI infrastructure is like a railroad today. So, the important thing for me is that we continue to see more use of AI, and this transition is moving into generative AI and eventually into the physical world. So that's what I'm looking for in terms of inference capabilities that power a lot of new applications, profitability of tokens versus consumption, etc. And when it comes to the training side, I think the important thing is that the transition to AGI is really accelerating. So, um, I think over the past few weeks, we've seen a lot of encouraging data points along the way.
01:35 Speaker A
And specifically, what about the data points that the companies themselves have from a profitability and revenue generation perspective? What do you find to be the most encouraging indicator of return on investment?
01:52 tony one
Well, I think when an industry is growing rapidly, there's a lot of capital going after it, and there's going to be a lot of competitors and players, both existing and new, coming into the market. So I don't think the profits will be evenly distributed. Therefore, it is surprising that some companies earn significantly more gross profit than others. So, the key for me is that I want to invest in a platform that can provide a lot of value and capture a lot of value in the process.
