Brookfield's Rashid Not Surprised by the Selloff in Tech Stocks
Speakers
michaelsikand
— Head of AI Infrastructure and Head of Europe, Brookfield Asset Management
Summary
Sikander Rashid discusses the recent tech selloff, viewing it as a healthy pullback and emphasizing strong underlying demand for AI infrastructure and semiconductors. He highlights France as a top European destination for AI infrastructure and expects continued CapEx growth from tech firms.
- Rashid says the selloff in tech and semiconductors was expected after a big run-up.
- He sees strong demand for AI infrastructure despite market anxiety.
- He highlights bottlenecks in wafer manufacturing and power.
- He is confident in Brookfield's long-term contracts with top tech firms and sovereigns.
- He expects semiconductor demand to remain strong over the next few years.
- He notes that Europe and the UK offer opportunities for inference compute due to data sovereignty.
- He identifies France as an attractive AI infrastructure destination, citing nuclear power and policy.
- He states that interest rates are not a material constraint for long-term infrastructure investments.
Ideas
Strong semiconductor demand despite pullback.
The recent 10% pullback in the Philadelphia Semiconductor Index is a healthy correction after an 80% run, and the underlying demand for semiconductors remains very strong driven by AI. Semiconductors are a fundamental piece of the $1 trillion AI CapEx cycle over the next decade, and despite cyclicality, the AI-driven demand is structurally different and will support strong demand for years.
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