Many are wondering what the return on investment of A is for you. Is infrastructure picks and shovels still the good place to be allocating? Right. When we think about it. So so what with Johnson Investment Management, we're focused on quality investing. We're focused on the long term. We think right now sort of the attention certainly is more in the short term in terms of CapEx band and demand for and video chips. But historically, the chip industry is very cyclical, and we're looking for sort of those platform players that can kind of continue to monetize consistently over the long term. So when we think about today, certainly attentions on NVIDIA, but we're really looking more towards the long term. So that would be the Microsofts really establishing themselves with that massive CapEx band. We're also seeing it on Alphabet's the Alphabet side where again, that investments building that beachhead for

long-term monetization. We also like Accenture. We think Accenture, from an AI story, has sort of been really misunderstood by the market, in our opinion. When we look at Accenture right now, we think the market, which we continue to think of as a long-term investor, tends to focus on a little bit of slowdown in its spend, which has sort of unduly hammered the stock, in our opinion. And when we look at Accenture, they're committed to spending 3 billion to 2 lot for air. They're a market leader in terms of cloud, with significant share when they did a large investment like that as well. And we would expect that in a sort of a picks-and-shovels type company to really benefit in the long term from AI as an implementer in that they don't really have to pick the winner; they just have to continue to be very good at

implementing the tech. Kevin, I didn't expect us to jump straight in on Accenture. I'll be honest with you. It's a pretty big, weak economic data. Powell speaks and everyone has a lot of anxiety about NVIDIA on August 28th, which is the most important four-year. I mean, for us, when we look at NVIDIA, it's interesting, but we don't own Nvidia. And when we think about the market, you know, it's been very binary, a handful of A.I. driven stocks and really sort of missing sort of the broader value creation across the market as a whole. So in this case, you know, we certainly acknowledge and NVIDIA will understand how it contextually sort of can impact our portfolio. What we're really sort of keyed in on the short term is just sort of a continuation of that sort of trend and migration from a long-term perspective towards A.I., but also broader tech and seeing how healthy it is in terms of

growing. So that's that's that's about it. It's sort of contextually looking at the short term, but really with an eye towards the long term. I'm really interested in that, that you're not in in video, but you are in Alphabet, Microsoft, TSMC, the likes of Accenture, Texas Instruments, maybe lasso on the side, but the others are AI names, wireless and video. So what's interesting about our strategy very inherent in terms of us and our sort of quest for long term quality growth businesses. We look for companies that have high returns on capital and consistently so. So we're looking for companies that have return in excess of 15% return on equity for ten years. So it's not an average every year as to how it's supposed to. The ten years are supposed to denote in all sort of market type environment of high capital returns. And NVIDIA had not up until this most

recent fiscal year qualified. And so in that case, it does qualify. Now we are actually researching it. Our sense we look at the valuation would be that from a fundamental standpoint we'll probably like it. But I think from a valuation standpoint, for us to rich that sort of enter a position. Right now, given the invidious side of the equation on is easy to understand. The CapEx investment on infrastructure is there. If you go back to your Accenture example, I find really interesting. Where people struggle is to see the top line growth coming out the other side, those that are working on services and products, do you see it? It's early days we've seen. What's interesting is as you look at the growth in terms of projects and spend for Accenture has been growing dramatically. And so but relative to total revenue, it's not as large yet. And that's typically what you're seeing these sort of early adoptions of, you

know, new, newer, or new technologies. You sort of see small-based, large growth. And right now, relative to the overall picture, it looks small. And I think the market, you know, from our perspective, when we look at it, you know, the market's so focused on short-term gains that in essence sort of looking at the trees, and we're trying to look at the forest, and we like the trends, we like the direction. And having been invested in this company for a long time and seeing this sort of play out before in other tech trends, we're incredibly excited about the opportunities ahead for Accenture.

Nvidia Gains as AI Spending Bonanza Continues

Welcome to the Bloomberg Technology YouTube channel. Subscribe for original series and mini-docs on game-changing technologies, profiles on innovators, live conversations with experts, and breaking technology news & analysis from Bloomberg TV.