AI boom creates investment opportunities beyond big tech, Perpetual says
APTV•Barrow Hanley portfolio manager David Ganucheau said AI investment is driving growth among traditional industrial suppliers and that he is buying Aptiv at seven times earnings, citing its robotics potential.
1. Opportunities beyond big tech
Ganucheau said robotics and industrial automation suppliers offer opportunities where potential growth is not yet reflected in valuations. He is buying Aptiv at seven times earnings, citing its robotics potential.
2. Diversification risks
Ganucheau said concentration in seven to 10 large companies raises portfolio diversification risks, and that highly valued growth stocks remain vulnerable to higher rates or slower growth. Growth stocks fell 30% in 2022, compared with single-digit declines for value stocks.
