Perspectives on the AI and robotics sector with Alexandre Zilliox, portfolio manager at Thematics AM.
During this interview, Alexandre Zilliox, portfolio manager at Thematics AM, analyzes the world of AI and robotics. It discusses the investment prospects in this sector, the challenges related to the monetization of innovations, as well as the opportunities that arise outside of traditional technologies.
In what phase of the cycle is the theme located?
By analyzing the fundamentals of AI and robotics, it becomes clear that we are still at the beginning of the cycle. Take computing power infrastructure as an example: it is estimated that there are around 1 trillion data centers around the world, currently being modernized with AI-optimized processors, as well as systems suitable cooling and power management. On the software side, it is difficult to find companies with more than 20% direct exposure to AI, which also reflects a still immature market. We therefore believe that we have only scratched the surface of the potential of AI and robotics, and that this trend is set to strengthen.
What are your prospects for the sector?
We are facing a complex situation. On the one hand, large investments are pouring in, particularly in semiconductors, from large cloud providers and well-funded start-ups. On the other hand, monetization of software and applications is taking longer than expected, causing concerns in the market. In 2024, some disappointments have led to volatility, particularly in the software sector, where revenues from new products have often disappointed investors’ expectations. This brings us back to Amara’s Law, which highlights our tendency to overestimate the short-term impacts of a technology, while underestimating its long-term effects.
Can we be exposed to technological transitions without investing in the technology sector?
It is entirely possible to invest in AI and robotics outside of the traditional technology sector. Attractive opportunities present themselves particularly in the field of health, with advances such as precision medicine, automated diagnosis, robotic surgery, or even molecular research thanks to generative AI and data analysis. In industry, robots are called upon to meet major challenges, particularly in the face of the aging population and the labor shortage in certain sectors.
How is the AI market structured?
The current dynamic differs from the Internet bubble of the 2000s. We observe leading players in AI, well capitalized, with robust business models and high margins, which contrasts with the business models of the time. Additionally, large companies are increasingly collaborating with innovative start-ups, creating an ecosystem where each leverages the strengths of the other: access to computing power for small businesses and access to cutting-edge innovations. for adults.
How to distinguish the next Facebook from the next MySpace?
We invest considerable time analyzing what differentiates one company from another, scrutinizing its technology and innovations. We also assess financial criteria, such as a company’s ability to finance its own growth without resorting to markets, or its ability to support high levels of R&D. Our expertise in AI and robotics allows us to assess the value of a company within this value chain. Finally, we have chosen to invest only in facilitators, that is to say those who provide services and products based on AI or robotics, rather than in adopters. We firmly believe this represents the best strategy to capitalize on these long-term opportunities, as the adoption of AI and robotics accelerates across all industries.
Disclaimer
Marketing Communications. Reserved for professional customers only. All investments involve risks, including the risk of capital loss. Past performance is no guarantee of future performance. The provision of this document and/or any reference to specific securities, sectors or markets herein does not constitute investment advice, recommendation or solicitation to buy or sell any securities, or an offer of services. Investors should carefully consider the investment objectives, risks and charges of any investment before investing. The analyzes and opinions mentioned herein represent the views of the referenced author(s). They are issued on the date indicated, are subject to change and cannot be interpreted as having any contractual value. In Switzerland: This document is provided by Natixis Investment Managers, Switzerland Sàrl, Rue du Vieux Collège 10, 1204 Geneva, Switzerland or its representative office in Zurich, Schweizergasse 6, 8001 Zürich.
THEMATICS ASSET MANAGEMENT – Simplified Joint Stock Company (SAS) with capital of €150,000. RCS Paris: 843 939 992. Regulated by the AMF (Financial Markets Authority), under number GP 19000027. 11 rue Scribe, 75009 Paris, France.
