Dr. JoAnne Feeney, Partner and Portfolio Manager at Advisors Capital Management, joined Bloomberg to discuss the rapidly evolving AI investment landscape and where she sees more durable opportunities within the technology sector. She examined increasing competition among AI models, continued demand for semiconductor and data center infrastructure, risks within the memory chip market, and why long-term fundamentals remain critical amid short-term market volatility.
Recorded: July 21, 2026
Key Takeaways
Durable competitive advantages may matter more as AI competition increases: As increasingly capable AI models enter the market and implementation costs decline, Dr. Feeney noted that differentiation among model providers could become more difficult. She highlighted semiconductor suppliers and data center infrastructure as areas that may have more durable advantages tied to security, stability, reliability, and data handling.
Lower AI costs could support continued infrastructure demand: Falling inference costs may encourage broader AI adoption, which Dr. Feeney said could drive additional demand for data centers, GPUs, and custom-designed chips. At the same time, investors may need to consider where profit margins can be sustained as competition develops across the AI ecosystem.
Long-term fundamentals can provide perspective during market volatility: Dr. Feeney emphasized that short-term stock movements can be noisy and that ACM focuses on earnings, cash flow, and fundamental valuations over longer periods. She also cautioned that memory semiconductors remain cyclical, with additional capacity potentially creating pricing pressure as new supply enters the market.
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