Investing in Artificial Intelligence
A few observations on the investment opportunities presented by AI.
What we are seeing
Investors across the globe are increasingly focusing on artificial intelligence (AI) as one of the defining growth themes of the decade. From semiconductors that power machine learning models to software that embeds intelligence into business processes, AI is reshaping industries and creating fresh opportunities for long-term capital appreciation.
Nvidia is often cited as the poster child of the AI boom, thanks to its GPUs that are foundational for training and running large language models and other AI workloads. Demand for Nvidia’s chips has propelled its valuation dramatically and made it one of the most valuable technology names in the world. Microsoft also showcases how AI can drive growth; its cloud platform and enterprise services increasingly integrate advanced AI tools, supporting customers from startups to global enterprises and helping sustain its recent stock performance. JCIC has generated excellent returns through our investment in Taiwan Semiconductors.
On the Canadian side, Celestica has emerged as a noteworthy beneficiary of the AI wave — the Toronto-listed technology manufacturer has seen strong revenue growth driven by AI-related data center infrastructure demand and partnerships with major cloud providers.
These examples highlight how AI is not just a standalone sector but a fundamental enabler for firms operating across semiconductors, cloud computing, and specialized technologies. For investors, this creates avenues to access growth at different points in the AI value chain.
However, it’s important to be cautious. Some market strategists warn that the rapid ascent in AI-related stock valuations may reflect high expectations that are already “priced in,” and could be vulnerable if growth slows or competition intensifies. Critics argue this theme risks resembling past speculative bubbles, where prices detach from business fundamentals. As with any trend, careful analysis and diversification remain key to managing downside risk in AI-centric portfolios.
With that caution in mind, JCIC has stayed involved with stocks that we feel are isolated from the AI trend. Specifically, Dollarama is a retail giant that has experienced impressive growth in the past year and is an excellent hedge against any retraction in the tech sector.
Our Kai Lam appeared on BNN recently to talk about this two-pronged approach.
Note: In keeping with the topic, the writing of this newsletter was assisted by AI powered tools. We will return to our normal ‘human curated’ newsletter next month.
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April 3rd-6th – Easter Weekend
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Although we obtain information contained in our newsletter from sources we believe to be reliable, we cannot guarantee its accuracy. The opinions expressed in the newsletter are those of JCIC Asset Management, its editors and contributors, and may change without notice. Any views or opinions expressed in the newsletter may not reflect those of the firm as a whole. The information in our newsletter may become outdated and we have no obligation to update it. The information in our newsletter is not intended to constitute individual investment advice and is not designed to meet your personal financial situation. It is provided for information purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor or a group of investors. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. We strongly advise you to discuss your investment options with your Relationship Manager prior to making any investments, including whether any investment is suitable for your specific needs.
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