00:00Korea, Taiwan, I'm curious where do you think we're in a bubble and when you
00:06talk to clients are they receptive to still building exposure there or are
00:10they also themselves quite cautious right at these levels?
00:13Yeah, I think the sort of debate on AI bubble has been going on for three consecutive years.
00:19If you believed in the year one to three years ago you would have missed all the trade.
00:23So the topic actually evolved as well, right?
00:26Starting from the debate on AI secular longevity, then moving on to this sort of
00:32Capex build out, whether that's sustainable, then sort of moving on to debating whether
00:37this sky high I Capex can translate into sustainable ROI.
00:41So the key thing really is about whether we have seen the agentic AI, they have making
00:48their ways into the workflows for individuals and corporates unlocking the productivity gains.
00:54So we firmly believe we're still in the early adoption AI trade phase.
00:59So the key question here to ask is really how AI can boost productivity gain.
01:06So let's say the GDP growth comes from three components.
01:11One is the total factor productivity.
01:14Second is labor.
01:15Third is capital.
01:17So AI agents arguably is the first technology in decades that can supercharge the labor inputs.
01:25So if you and I, we can work with dozens of AI agents, you know, to mobilize them, why
01:31can't we see a productivity expansion by two times, ten times?
01:35I think that's the crust of this issue right now.
01:37But having said that, make...
01:40There's no sign of that though.
01:41Yeah, but...
01:42A little sign of that.
01:43A little sign of that.
01:43Just ask yourself, you know, how many AI LLM you are using?
01:47How are you embracing AI in your daily work?
01:50I do find myself 15 to 20% more productive compared to six months ago.
01:55So I think the direction of travel is very positive.
01:57But make no mistake, some of the AI names, especially the hardware names, the semi-names,
02:03they are trading at elevated valuation, 60 times 2030 earnings.
02:09So the key thing for investors is it's not the...
02:12There isn't a full-blown AI bubble investors should shine away from.
02:17What investors should focus on instead is to prioritize risk management,
02:22rotate selectively, and anchor their portfolio with AI's long-term value migration.
02:27But we're not the bigger currency that we need.
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