BNN Bloomberg: Kai Lam on ways to gain from the AI boom
Three investment opportunities Kai Lam is bullish on today
In a recent appearance on BNN, Kai Lam shared three companies he believes are well-positioned for long-term growth, each tied to durable structural trends rather than short-term market momentum.
Looking Beyond Micro Chip Manufactures
The first company highlighted was Advantest, a Japanese firm deeply connected to the ongoing expansion of artificial intelligence infrastructure. While much of the market focus has centered on chip designers such as Nvidia, AMD, Broadcom, and Intel, Lam pointed out that Advantest occupies a different and potentially more stable position within the semiconductor ecosystem. The company controls roughly 60% of the market for testing advanced semiconductors during production. As AI chips become increasingly complex, testing requirements continue to grow, creating strong demand for Advantest’s services across multiple chip categories, including memory chips. Lam emphasized that regardless of which chip manufacturer ultimately gains market share, those chips will still likely need to be tested by Advantest.
Providing the Power to Growing Data Centers
Lam’s second pick was Schneider Electric, which he described as a global leader in energy management. Approximately 80% of Schneider Electric’s business is tied to helping factories, office buildings, and industrial operations improve energy efficiency — a trend Lam sees as highly durable over the long term. He also highlighted the company’s exposure to the rapidly expanding data center market. As hyperscale technology companies continue investing heavily in AI infrastructure, demand for efficient power management systems is accelerating, making data centers one of Schneider Electric’s fastest-growing business segments.
Poor Performance Creates Opportunity
Finally, Lam discussed Waste Connections, a TSX 60 constituent that he believes may be undervalued after a relatively soft year of stock performance. He noted that roughly 80% of the company’s business is not directly dependent on fluctuations in waste volumes, which gives it a more defensive and resilient business model. Lam suggested that some of the concerns weighing on the stock over the past year are becoming clearer and could position the company for improved performance going forward.
The JCIC Strategy:
Overall, Lam’s selections reflect a focus on businesses benefiting from long-term secular trends including artificial intelligence, energy efficiency, infrastructure growth, and defensive recurring revenue models.
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