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JH Explorer in Singapore: AI-focused client event at Google

Ahead of speaking at a recent client event focusing on generative AI at Google’s Asia HQ in Singapore, Portfolio Manager Richard Clode shares his thoughts on Google, and AI as the next major compute wave that is going to define the next decade and disrupt many industries.

Richard Clode, CFA

Richard Clode, CFA

Portfolio Manager


Oct 12, 2023
2 minute watch

Key takeaways:

  • AI is not just a theme, it is the next major compute wave that is going to define the next decade and disrupt many industries, most notably from the developing capabilities of generative AI.
  • Google recently celebrated its 25th birthday, and is an example of a successful company that has benefited from its ability to constantly innovate.
  • In a dynamic industry like technology, financial strength is key to enable innovation that drives profits and growth.
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IMPORTANT INFORMATION

Technology industries can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants, and general economic conditions. A concentrated investment in a single industry could be more volatile than the performance of less concentrated investments and the market.

I’m very excited to be here at Google Singapore today, and we’re going to be talking with some of the senior execs at Google Asia to talk about generative AI* and how important that technology is as the next major compute wave that is going to define the next decade and disrupt many industries.

And I think being here at Google is the perfect place to be doing that because they obviously invented the transformer model, which is the tech that underpinned ChatGPT and is going to lead to some tremendous innovation we feel over the next few years. Also, this sign behind me was saying 25 years just a few days, the 25th anniversary and the birthday of Google, they’ve actually been listed almost 20 years, which very much coincide with the 20 years that I’ve been a technology investor.

And I’ve learnt may new things from Google over the years. The fact that you have to continue to innovate, the fact that you dominate the PC, internet is not enough, you’ve got to invent Android to dominate the mobile internet. And again, that’s not enough you’ve got to then innovate and launch generative AI and be a leader in the cloud in an AI world too. That’s going to give you success over the long term in such a dynamic industry as tech. And also the fact that to do that and have the confidence to do that, the ability to do that, requires profits. So Google [parent company Alphabet] is one of the most profitable companies in the world, has one of the strongest balance sheets in the world, and again that’s been able to give it the strength to be able to innovate and invest in that R&D that will [likely] drive future growth and future profits for the company.

*Generative AI: refers to deep-learning models that train on large volumes of raw data to generate ‘new content’ including text, images, audio and video.

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

 

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The information in this article does not qualify as an investment recommendation.

 

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Important information

Please read the following important information regarding funds related to this article.

The Janus Henderson Horizon Fund (the “Fund”) is a Luxembourg SICAV incorporated on 30 May 1985, managed by Janus Henderson Investors Europe S.A. Janus Henderson Investors Europe S.A. may decide to terminate the marketing arrangements of this Collective Investment Scheme in accordance with the appropriate regulation. This is a marketing communication. Please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions.
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Richard Clode, CFA

Richard Clode, CFA

Portfolio Manager


Oct 12, 2023
2 minute watch

Key takeaways:

  • AI is not just a theme, it is the next major compute wave that is going to define the next decade and disrupt many industries, most notably from the developing capabilities of generative AI.
  • Google recently celebrated its 25th birthday, and is an example of a successful company that has benefited from its ability to constantly innovate.
  • In a dynamic industry like technology, financial strength is key to enable innovation that drives profits and growth.

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