British tech investor James Anderson has warned the curtain is falling on two decades of extraordinary growth among the top US software and internet stocks, as massive AI investments “implode” their cash flows to the lasting benefit of chipmakers such as Nvidia.
The spoils of the trillion-dollar AI spending frenzy by the likes of Google, Meta, Amazon and Microsoft will flow disproportionately to a small number of dominant hardware suppliers such as Nvidia, Taiwan Semiconductor Manufacturing Company and ASML, Anderson told the FT.
The former star Baillie Gifford fund manager — who now manages part of the billionaire Agnelli family’s investments — predicted the current squeeze in AI chip supply would last far longer than investors in the highly cyclical semiconductor industry have become used to.