Tanya Katari

Software has significantly undershot hardware, creating a big dislocation. The selloff is overdone for companies that possess unique data, domain expertise, compliance understanding, and distribution. Leaders in cybersecurity and enterprise software are being decimated by the market despite these defensive moats and ability to integrate AI, presenting a clear value opportunity.

The next capital cycle in AI is moving into the physical world—robotics, drones, autonomy. Investors should not buy the robot makers themselves but the supply chain: actuators, sensors, and components that enable physical AI. This is a new, differentiated area of exposure with secular growth tailwinds.

The AI infrastructure layer—chips, memory, photonics, cooling equipment—is transitioning from a historically cyclical story to one with about eight quarters of visibility. Management teams confirm strong traction extending at least through end of next year, making this a durable investment theme with pricing power and scarcity value.