I like this post a lot, partially because I think it is an underdiscussed area, partially because it expands beyond the obvious semiconductor type companies. One thing I would add, is that with almost no technology advancement, existing and soon to exist LLMs might make investing in social media (and internet adjacent) companies much more volatile. This is because as far as I can see, the bot problem for these companies should only become worse and worse as AI can more perfectly mimic a real user. This could lead to a kind of dead internet scenario where real humans are somewhat drowned out by noise and have grave implications for whatever stocks are involved-who of course depend on ad revenue. The reason I say more volatile is because there is obviously also upside for these same companies to utilise AI themselves further. My views on it are fuzzy though and it could go either way.
I like this post a lot, partially because I think it is an underdiscussed area, partially because it expands beyond the obvious semiconductor type companies. One thing I would add, is that with almost no technology advancement, existing and soon to exist LLMs might make investing in social media (and internet adjacent) companies much more volatile. This is because as far as I can see, the bot problem for these companies should only become worse and worse as AI can more perfectly mimic a real user. This could lead to a kind of dead internet scenario where real humans are somewhat drowned out by noise and have grave implications for whatever stocks are involved-who of course depend on ad revenue. The reason I say more volatile is because there is obviously also upside for these same companies to utilise AI themselves further. My views on it are fuzzy though and it could go either way.