Oliver Cox 5.0 3 ideas

"We've seen a number of software companies correcting as the market has put a big question mark over this emerging risk of disruption... the gaming sector in particular... stands out." The market has unfairly punished gaming stocks over fears that generative AI will disrupt their business models. However, their core moats—intellectual property and long-term consumer relationships—remain fully intact, presenting a value opportunity. LONG established gaming companies whose IP moats protect them from AI disruption. AI could lower barriers to entry for new game developers, increasing overall market competition.

"For every dollar spent by the US Hyperscalers, we think approximately 40 to 50% of that is coming directly into the Asia supply chain." The AI datacenter buildout is still in its "mid-cycle." The massive CapEx from US tech giants directly benefits Asian semiconductor foundries and hardware manufacturers, making any price correction in these equities a buying opportunity. LONG Asian semiconductor foundries that capture the bulk of US hyperscaler CapEx. A prolonged higher interest rate environment or a strong US dollar could act as a macro headwind for Asian equities.