Andrew Curtayne: Milford Asset Management expert on the tech companies catching the attention of investors

AI and technology stocks are continuing to have a significant presence in the market - but which companies are leading the charge?

Broadcom and Oracle are among the companies that have generated positive results, and Nvidia made headlines following its $100 billion investment in OpenAI.

Milford Asset Management's Andrew Curtayne explained further.

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Episode Transcript

Speaker 1 (00:09):
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Speaker 2 (00:16):
Andrew Curtaine, Milford Asset Management, Andrew Good Evening.

Speaker 3 (00:20):
Eden, Ryan, how are you very well?

Speaker 2 (00:22):
Thank you. We've been watching the tech stocks and we've
been watching the AI stocks leading this market higher and
higher over in the US. What's the latest investors, you know,
what companies have you been looking at? What are investors
focus on?

Speaker 3 (00:37):
You know, they really continued to rally pretty much each
month you see them higher. There's been over the last
few weeks, has been number of key pieces of a
news couple of US result based You had two large companies,
one called Oracle that people will be familiar with Larry
Ellison sort of the key shareholder, and that stot that
had an incredible result where they now it'ced three hundred

(00:58):
billion dollars of new contracts for AI cloud services. That's
just like ridiculously big numbers, which the Chefrice rallied over
the two percent on that one day alone put Oracle
into around about the top ten largest companies in the US.
And Larry Ellison himself owns about forty five percent of
that business, so I think very shortly went past elon

(01:21):
Musk as the richest man in the world. So yeah,
fantastic performance from that business. Another company called Broadcom, which
which sells chips, which largely compete with Navidia, has also
had a strong results and upgraded numbers. And amongst most
other pieces of news, Google sort of getting its kind
of inet its mojo going with Gemini, which is its

(01:41):
AI product, and that's geting a lot of tensions. So
share price has been doing well there. And then just
two days ago Navidio made an announcement that they're going
to invest one hundred billion dollars in open Ai, which
is the company that owns chat GPT, and that got
the market pretty excited, and Navidia shares about three or
four percent on That is.

Speaker 2 (02:02):
The worry that you've got huge investments some of these companies,
and then one will invest in and the other the
other will invest back in that one, and it could
be creating some kind of bubble. I mean, even just
the level at which the market's rising, it does it
indicate bubble territory.

Speaker 3 (02:21):
Yeah, there's certainly been a growing view from some investors
that were starting to look bubble like and they make
comparisons to the dot com or the Internet bubble era
that happened in the late nineties early two thousands. One
piece that Navidia invested I mentioned which she used to
correctly point out on the secularity there. It is a
little bit circular. And what they're doing is they're investing

(02:43):
one hundred billion dollars in open Ai, who was then
taking that one hundred billion dollars and using it to buy,
amongst other things, chips from Navidia. So it's kind of
like the given the company that to buy their own product.
So a bit circular, and it causes concern. And there
was elements of that or that was happening in various
ways in the Internet bubble. And then of course the

(03:04):
evaluations of some of these stocks are getting getting higher,
so you're certainly seeing a grown and yeah, of course
the people are getting a little bit concerned and some
people you see some investors that have taken a little
bit of risk off some of their stocks.

Speaker 2 (03:16):
It's interesting because when you look at that from a
practical personal perspective, you know, I look at it and
I think, well, I can see why it's going up,
because if I look at my use of AI just
in the past six months or they alone a year
is also going up. So I'm like, maybe they're you know,
it's justified.

Speaker 3 (03:35):
Yeah, that's that's certainly what all the big companies in
the world are the Microsoft's and Google's amazons, and that's
what they believe, right. They think the AI use case
is there, they think it's getting the use cases are
getting better and better, and you certainly are seeing that.
I mean, Chichibt is so much better now than it
was two years ago when it came onto the scene,

(03:56):
and so they convinced that AI is the next technological jump.
Therefore they're willing to invest hundreds of billions of dollars.
So currently there's this estimated about six hundred billion per
anim has been invested into AI data centers. That number
is expected to grow potentially to one one or just
over one trillion dollars over the next couple of years.

(04:17):
And even a big sit at AI ball at Jensen Huang,
who's the CEO of Navidia, is putting out numbers saying
we there might be three trillion dollars of annual spend
on AI data centers, which is phenomenal. You're talking about
three trillion, You're talking something like three to four percent
of global GDP. So, well, you've got these companies who
believe in AI and believe in the product, then they

(04:38):
can keep putting the money and the profitable companies, largest
in the world, they can keep fueling this kind of spending.

Speaker 2 (04:43):
Spring fascinating stuff. Andrew, appreciate your time tonight, Andrew Kurchain,
Milford Asset Management.

Speaker 1 (04:48):
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