BIG TECH IS BEING UNDERESTIMATED. AND IN MY OPINION, WE'RE ONLY AT THE BEGINNING
The last few months haven't been easy for me as an investor.
The market rose, but my portfolio lagged for a while. I held large positions in Amazon, Microsoft, Alphabet, Meta, and other tech leaders, while parts of the market questioned their high investments in artificial intelligence.
Many investors mostly saw rising capex, pressure on free cash flow, and massive costs for data centers, chips, and infrastructure.
But I saw something different.
I saw companies with dominant positions, huge cash flow, billions of users, their own distribution, and the ability to turn AI into a real product.
That's why I didn't sell Big Tech during the dips. On the contrary — I gradually bought more.
Today, we're already seeing the first results. Amazon and Microsoft have significantly recovered, their core segments remain strong, and AI investments are starting to support further growth. Meta is still lagging, but its advertising business continues to generate enormous amounts of cash, and the results showed that the core investment thesis remains alive.
AI has several phases
In my video, I explained that the AI revolution won't be a one-off event. It will unfold in multiple phases.
The first phase was building infrastructure.
Chips were bought, data centers were built, cloud capacities were expanded, and foundational models were created. The biggest winners of this phase were primarily companies providing hardware and computing power.
Now, however, in my opinion, we're slowly entering the second phase — monetization and deployment of AI into real products.
And this is exactly where Big Tech companies have a huge advantage.
Microsoft can integrate AI into its software, cloud, and enterprise tools. Amazon will use it in AWS, advertising, logistics, and e-commerce. Alphabet has search, YouTube, cloud, and billions of users. Meta can use AI to improve content recommendations, ad performance, and monetization of its platforms.
These companies don't need to acquire users from scratch. They already have them.
They don't need to search for distribution channels. They already control them.
They don't need to prove they can generate cash flow. They've been doing it for years.
The market focused too much on costs
The biggest concern was the massive investments in AI. That's a legitimate risk, and not every euro or dollar invested will yield high returns.
However, in my opinion, the market for a while focused mainly on costs, but didn't sufficiently appreciate future revenues, higher productivity, better advertising systems, and new products that this infrastructure can create.
Such investment periods often look the worst just before their results start to show.
That's why I'm not changing strategy.
I want to hold the quality core of the portfolio. I want to buy more Big Tech on significant dips, and at the same time look for smaller asymmetric opportunities.
I don't expect everything to just go up. There will be weaker quarters, corrections, and doubts. But my goal isn't to guess the next month.
My goal is to own companies that could earn significantly more in five or ten years than they do today.
And in my opinion, the real monetization of AI is only just beginning.
Do you think Big Tech's AI growth is already priced in, or are we still just at the start of the second phase?
