A top executive at $100 billion private equity giant Vista Equity Partners believes the AI supercycle isn’t set to pop.
In a new CNBC interview, Ashley MacNeill, head of equity capital markets and managing director at Vista, says the AI boom should be viewed less as a speculative bubble and more as a durable balloon that will inflate and deflate as industries adapt to new technology.
“Is this a bubble that’s going to burst like it did in 1999, or is this more like a balloon where we’re going to see it inflate and deflate as we kind of go through the cycles? Given the longevity of this technology and given the fact that these are waves that are going to adopt this technology, I’m more inclined to think that we aren’t bursting, but rather we’re going to inflate and deflate as this technology ebbs and flows.”
She notes that the current rally is already broadening beyond megacap tech stocks, with new sectors starting to benefit from AI’s diffusion through the economy.
“My personal opinion is you’re going to see a broadening out. And you’ve already started seeing that in earnest. You’ve seen other parts of the economy, utilities, energy, infrastructure, industrials start to benefit. And if you look at earnings and growth estimates, tech by far and away is the winner. But utilities, energy, industrials, they’re all supposed to grow double digits, which is pretty unique.”
She says the next stage of the AI trade will depend on adoption across traditional industries rather than the core technology enablers.
“It’s the AI super cycle. This is what has to keep this technology going to move from the enablers to the adopters.”
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.