You’re About to See the Real AI Winners Stand Up

Summary

Jonathan Thomas discusses American Century's growth, the success of Avantis active ETFs, and the market's shift from AI creators to adopters. He notes the S&P 493 is outperforming the Magnificent Seven, and healthcare and financials could be major AI beneficiaries. Nvidia's lower multiple suggests value, but capex sustainability remains a concern.

• Jonathan Thomas explains American Century's unique ownership structure that directs over 40% of dividends to the Stowers Institute for medical research.
• Avantis Investors grew to $150 billion in 6.5 years by offering low-cost, factor-based active ETFs that have outperformed benchmarks.
• The asset management industry has shifted from direct-to-consumer to advisor-led, and now toward platforms and active ETFs.
• Despite political and economic noise, the economy remains resilient with steady growth, and markets are hitting new highs.
• The market is broadening out from the Magnificent Seven as AI spending by hyperscalers starts translating into productivity gains for the S&P 493.
• Healthcare and financials are highlighted as the next likely big winners from AI adoption through applications like drug discovery and insurance underwriting.
• Nvidia's P/E multiple has compressed to around 18x, a discount to the market, prompting a debate on whether this is a value opportunity or an earnings bubble.
• The Stowers Institute conducts foundational biological research, studying regeneration in animals to uncover new medical treatments, funded by American Century's profits.