We're trying to understand whether this
whole exuberance around generative AI, whether the desire to get into
infrastructure really is implicating your demand for PCs, your demand for new protection and cybersecurity that involves generative
AI.

Is it being translated yet?
Yeah, it's quite interesting. I think there's a huge expectation,
obviously on Journey VII, it's been two years now.
We're in November 2024 now since the launch of JPT.
I think what's interesting is that the

build out is creating a lot of demand
for all sorts of new technologies. I think you mentioned the PC, the
smartphones. I think clearly HBM, high bandwidth
memory, nobody would have expected that demand to be so high even a year ago.
I think that trickles down to PC

smartphones, of course, lackluster
numbers today. But at the same time, when you think
about AI on the edge and what can come around any smartphone, including
obviously the iPhone 17, which is already expected to increase their
memory by at least 50% for the next

round of innovation.
So I think AI on the edge, HBM, high bandwidth
memory, famous Moore's Law, now also embedding, you know, a lot more memory
in order to run Journey VII. I think that build out is creating a lot
of demand for obviously different

technologies from semiconductor design
all the way to semiconductor software, but also to the actual equipment makers
who also now see sort of demand for this advanced packaging that I mentioned
earlier. So I think where we are is also an
S-curve.

So the infrastructure buildout obviously
very important. But even in the second, third phase,
there are some very interesting, you know, investments that we see in
software now starting to embed more and more generally.
I mean, you mentioned CrowdStrike

earlier.
That's a great example where there's a talent shortage where, Jenny, I can
actually help you. You know, CrowdStrike has a product
called Falcon AI, so that helps you also find problems or event data driven
information can be used in within

generally AI as well within the products
of design. That's quite interesting.
There is the question though, for many is there's interesting enclaves, there's
there's interesting opportunities. You talk about the whole bandwidth where
you could be allocating money, but are

the valuations already reflecting the
optimism that we get at the edge and we all start adopting it?
So I think on valuations, it's an interesting
sort of dilemma. I think right now I think there's a lot
going on in terms of the obviously

profitability revenues that you see
today and probably justifies a lot of it.
But I think moving forward to a bigger, I think pool of potential investments
opportunities beyond the tech stocks, if you want, or the information technology
stocks, I think you see a lot of other

areas which are not necessarily related
to IT, which can have very, you know, obviously interesting valuations, also
interesting opportunities. So when you look through beyond an index
or beyond a handful of stocks, I think that can be some very interesting
opportunities there where the valuations

may not be as high.
And also the potential losses remain still very, very strong because there
are some examples that actually... Are you talking about energy
opportunities? You talk about other spaces within
software that, for example, well, hasn't

already been priced in like Palantir.
So I think we look at everything from, like I mentioned, some of the equipment
makers which play a big role in the whole US reshoring showing.
I mean, there's huge subsidies out there

and huge sort of investments that are
already out there for a huge number of these new build-outs of semiconductor
Intel, you're saying, and even at TSMC in this geopolitical environment.
So if you take under the reshoring, so

again, you're showing sort of examples.
If you take Micron, TSMC, Intel, Samsung, you have more than 325 billion
of all the, you know, sort of expenses out there in terms of building out these
brand new factories.

So I think that means that you're going
to embed a lot of new equipment within those factories and then obviously a lot
of other software and even industrial robotics within those factories, because
these chips sometimes are so heavy, you need robotic arms to carry them.
So those are the sort of examples where

you can look beyond sort of, you know,
some of the obvious IT stocks that very often would fall into that category of
valuations being a bit tricky. Your CV is so fascinating because like
me, you sort of started focusing in on

the bond market, credit, and then you've
really dived into some niche areas that everyone's now interested in:
digitalisation, robotics, as you say, security.
Where are we going to see, for example, the robotics reimagining come in?
Is it US-based companies?

Is it global?
Interesting. I think on the robotics side, you can
look at everything from actual industrial robotics or factory arms that
help you build semiconductor chips or EVs, etc.
But the automation behind robotics is quite interesting in terms of expanding
through software, through all these data

driven decisions, both for industrial
and for enterprise, actually. There's a very interesting chart that I
often use about the growth since 2021 to 2030 about the semiconductor industry,
and you will see the growth rate is actually quite interesting in the
automotive and the industrial sector.

And that's also obviously driving a lot
of M&A. Recently Siemens acquiring Altair or
even Synopsys acquiring ANSYS. There's a lot of it
in that space, because the hardware, if you want, is supplemented
more and more with the software, but also the data-driven
decisions. I think that in the field of robotics
will be quite interesting going forward.

I think that in the field of robotics
will be quite interesting going forward.

Dell Falls as Stalling PC Recovery Weighs on Results

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