Jordi Visser Warns AI is Undermining Traditional Moats
Jordi Visser has warned that the instantaneous competition brought by AI is undermining the traditional moats of companies, predicting that within the next 5-10 years, half of the companies in the S&P 500 may lose their investment value, becoming as irrelevant as today's Ford Motor Company, citing the predicaments of Salesforce and Adobe as examples.
He strongly refutes the AI bubble theory, stating that Samsung's profits are expected to reach $217 billion, exceeding the total of the past 40 years, while Nvidia's valuation is at a ten-year low. The demand for computing power is growing exponentially, far surpassing that of oil, and the obligations of large-scale cloud service providers amount to $20 trillion with no idle capacity.
In terms of market mechanisms, AI is disrupting expectations, driving funds to accelerate towards cutting-edge computing and infrastructure targets like Nvidia and Marvell Technology, while traditional companies face valuation pressure. The AI ecosystem benefits from the explosive demand for consumer agents and robots, leading to a warming of top digital asset allocations.
Source: Public Information
ABAB AI Insight
Jordi Visser has long tracked technology cycles as a macro strategist, emphasizing the impact of AI beyond traditional frameworks during its early stages, similar to predictions about the reshaping of moats during the internet revolution.
In terms of capital allocation, he suggests guiding investors to allocate 10-20% to AI and digital assets, shifting resources from traditional S&P components to Nvidia, Eli Lilly, and data center infrastructure, motivated by capturing the exponential demand for computing power and breakthroughs in agents.
Similar to the differentiation of tech stocks in the 1990s or the recent concentration in cloud infrastructure, the current market is at a critical turning point as AI transitions from speculation to tangible productivity and infrastructure.
This fundamentally represents a technological substitution change, with instantaneous competition from AI accelerating the collapse of traditional moats and capital concentrating on a few winners. The mechanism is driven by the flood of computing power from agents and robots reshaping the economic structure, with traditional macro analysis becoming ineffective, pushing funds efficiently towards cutting-edge targets with exponential growth potential.
ABAB News · Law of Cognition
Instantaneous competition from AI is dismantling century-old moats.
Exponential growth in computing power far exceeds linear demand.
Allocating to the forefront is better than diversifying into traditional assets.