Generative artificial intelligence (GenAI) has been one of the hottest topics in the investment community this year, at times getting even more attention than the Fed and its battle with inflation. One prominent software executive recently called it the most important technology ever. Its impact on stocks has been significant, especially in the technology sector where stocks deemed as beneficiaries of GenAI have meaningfully outperformed this year while those perceived as being threatened have severely lagged. With several billions of dollars already being spent or committed for building out GenAI infrastructure, there are questions emerging about the practical uses for GenAI and the extent to which there will be business cases and financial models that can justify the enormous investments being made
One prominent theme from the June 2023 quarter earnings season is the return of normal business seasonality. The pandemic disrupted supply chains all over the world, and as we move away from that period lead times continue to normalize. In many cases, lead times have improved from over a year to only a few months.
This month’s commentary presents our favorite charts across emerging markets, showing the themes represented in the portfolio.