The AI opportunity is being driven by accelerating contracted enterprise revenue, and the dispersion between potential winners and losers has become the defining feature of the landscape.
Far from being in a euphoric bubble about AI, we are climbing a “wall of worry” of epic proportions. Many market participants have expressed concerns about valuations, soaring capex, choke points that will act as limiting factors for AI capacity rollouts, lack of funding/financing and the impact of AI on other industries, with software in particular being in the crosshairs. While we are monitoring all these factors, we believe that the changing dynamic in software is the only valid concern at this time.
Is this a re-run of the 1990s dotcom bubble?
