We believe artificial intelligence (AI) is the next general-purpose technology and a rare example of discontinuous technology change around which all industries will be reshaped. AI demand is accelerating and outpacing supply despite material AI infrastructure investments – we expect this dynamic to continue into 2026 as we believe we are in the early phases of a major infrastructure investment cycle with significant upside to consensus capital expenditure estimates.

We do not believe we are in an AI bubble.

After a top-heavy 2024, during which the largest technology stocks dominated returns, the market saw a change in leadership in 2025 as the Magnificent Seven and market-cap-weighted technology indices no longer prove as good a conduit for AI. This has led to a richer environment for stock selection, which we expect to persist into 2026.

We expect 2026 to be the year when the capabilities of these models become unmistakable
Rapid technological change plays to our strength and experience as one of the largest technology investment teams globally, with 11 dedicated portfolio managers/analysts. Eight years managing a dedicated AI fund has also shaped our investment perspective and focus while giving us invaluable insights.

We are excited about the application of AI within our own investment process and intend to use this to further differentiate and ‘turbocharge’ our approach.

While we expect our bullish outlook to be periodically tested by bouts of volatility, we remain AI maximalists. Discontinuous technological progress is difficult to grasp and even harder to predict. AI is advancing at extraordinary speed; we expect 2026 to be the year when the capabilities of these models become unmistakable and the impact of AI increasingly impossible for investors across all sectors to ignore.