As the curtains close on this season’s highly anticipated corporate reporting, it’s evident that investors have been on quite the rollercoaster ride. Daily stock swings exceeding 20 per cent have become the new normal, regardless of a company’s size.
In the grand scheme of things, we’ve observed a collective 2 per cent downgrade in financial year 2024 earnings among ASX 200 companies, making this reporting season one of the most challenging in recent memory.But let’s shift our focus away from the past, and instead dive headfirst into an emerging theme, not just in Australia but on the global stage: Generative AI.
In contrast to the US market, Australia may initially appear to offer limited direct avenues for investing in the AI boom.such as Nvidia, a closer examination reveals that many are still in their infancy, making it challenging to determine their competitive edge. Our explorations have led us primarily to companies centred around data centres, a sector poised for substantial growth, driven by the escalating demand for data.