A Bullish Play on AI Agents

It’s no secret that AI is one of the hottest themes in the stock market this year.
Just look at some of the incredible year-to-date stock returns on companies associated with AI:

Many of the winners so far have been companies involved in datacenter operations and equipment, which makes sense given the insane growth in datacenter buildouts this year.

🏗️ Datacenter Boom

This chart shows us the incredible spending ramps from megacap tech companies on AI datacenters:

However, there’s growing concern that datacenter capacity might be in a bubble that will eventually burst. Plus, the growth story is now being priced into much higher valuations for hardware, equipment, and utility stocks.

🤔 So What’s an Investor to Do?

We believe a lot of the long-term value from the AI boom will ultimately end up being generated downstream — by the companies providing AI applications to consumers and businesses.

Just like the dotcom boom, the early winners were infrastructure plays like Intel, Cisco, and Lucent…but the real long-term winners were companies like Amazon, Booking, Facebook, Salesforce, and Uber.

So, we see opportunity in shifting focus to the companies that could start generating huge revenue growth by implementing the best AI features.

🧠 The Rise of “AI Agents”

One area we’ve been exploring is AI Agents — LLM-driven software programs that can perform work tasks with minimal direction.

AI Agents, when connected to the right tools, can:

• Gather and analyze data

• Do research and write reports

• Generate code

• Even make online purchases on your behalf

Progress in AI Agents has accelerated rapidly this year. And we think there’s a publicly traded stock that could benefit from this hype cycle.

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