Technology & Telecommunications

On November 30, 2022, the world marvelled at the release and conversational prowess of OpenAI’s ChatGPT. What the world might have missed, however, was the subtle shift that began rippling through the U.S. economy.

What started as a viral tech demo – capable of drafting emails, coding snippets, and even poetry – escalated into a full-blown revolution in large language models (LLMs) and artificial intelligence, now described as the fourth industrial revolution. continue…

by Roger Montgomery Posted in Technology & Telecommunications.

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Yesterday I joined Jess McGuire on ABC’s Statewide Drive to talk about the artificial intelligence (AI) boom and what it means for investors. While AI may well transform industries and benefit consumers, I cautioned that the rush into AI stocks has pushed valuations to bubble-like levels, where prices assume every company will succeed – something history tells us is impossible. High valuations typically mean lower future returns, and right now U.S. stocks are at record high prices. For investors, particularly those nearing retirement, my advice was simple: regularly rebalance portfolios by trimming back exposure to overheated assets and reallocating to alternatives such as private credit, small company funds, or cash — rather than panic selling — to stay defensive while still positioned for long-term growth. continue…

by Roger Montgomery Posted in Market commentary, Radio, Technology & Telecommunications.

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As I delve a little deeper into the aggregate artificial intelligence (AI) capital expenditure (capex) numbers and the revenue and profits subsequently required to recoup them, one thing stands out: a world of AI forecasts that are universally optimistic.

That’s not usual in any hype-inspired boom, but these numbers are extraordinary. continue…

by Roger Montgomery Posted in Market commentary, Technology & Telecommunications.

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Last week, The Wall Street Journal (WSJ) published a piece commenting on the artificial intelligence (AI) infrastructure frenzy. As an investor, one can’t help but be awestruck while also feeling concern and a more than a hint of déjà vu.

According to the WSJ, Ellendale, North Dakota, is a sleepy town of just 1,100 now playing host to a half-built AI data centre that’s will be larger than 10 Home Depots – the U.S. equivalent of a large format Bunnings Warehouse here in Australia. continue…

by Roger Montgomery Posted in Global markets, Market commentary, Technology & Telecommunications.

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In 2025, so far, the seven most influential U.S. tech giants – The Magnificent Seven, or Mag 7 (Alphabet, Amazon, Apple, Microsoft, Meta Platforms, Tesla and Nvidia) – have continued to assert their dominance and reinforce their role in determining the S&P 500’s trajectory. Despite what appears to be artificial intelligence (AI) hype, or perhaps because of it, the seven giants have collectively outpaced the broader S&P 500’s 12.47 per cent year-to-date (YTD) rise, delivering a gain of 15.9 per cent through Monday’s close. At the same time, however, their market-capitalisation share has dropped slightly from a peak of 32.2 per cent in mid-August to 31.3 per cent of the S&P 500’s total value. That indicates some stocks outside of the Mag 7 have been outperforming them. continue…

by Roger Montgomery Posted in Companies, Polen Capital, Stocks We Like, Technology & Telecommunications.

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As we have previously reported, Tuas Ltd (ASX:TUA) is a rising star in the telecommunications sector. The company continues to solidify its position as a formidable player in Singapore’s competitive telecom market. Broker Peloton Capital has also been following the company closely and recently reported on a major acquisition. continue…

by Roger Montgomery Posted in Companies, Technology & Telecommunications.

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While Telstra’s share price is up about 80 per cent since the lows of Covid in 2020, the shares are trading at about where they were in 2003, and they are down 26 per cent from their 2015 highs and 45 per cent lower than their all-time highs in 1999.

Telstra has been a case study against investing for the long term, or maybe a case study in sticking to quality if you are going to invest for the long term. Time is the friend of the wonderful business, and the enemy of a business with poor economics. continue…

by Roger Montgomery Posted in Companies, Technology & Telecommunications.

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Life360’s (ASX:360) June 2025 quarterly results saw its share price react very positively, appreciating 9.6 per cent to A$41.46, at the time of writing. This follows on from an 18 per cent increase following its March 2025 quarterly results. continue…

by David Buckland Posted in Stocks We Like, Technology & Telecommunications.

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TechnologyOne (ASX:TNE), has been a steady presence in the UK since 2006 but its recent transformation under a focused Software as a Service (SaaS) strategy has changed the firm’s earnings growth trajectory. After years of laying foundations in the education and local government sectors, the company is delivering robust growth and structural improvements that are now recognised by the market. With accelerating Annual Recurring Revenue (ARR) growth and a supportive digital transformation backdrop, TechnologyOne’s UK operations are poised for sustained momentum. continue…

by Sean Sequeira Posted in Companies, Small Caps, Stocks We Like, Technology & Telecommunications.

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Two months into 2025 and a palpable sense of disquiet seems to have settled over equity markets. Far from the jubilant ascents of the previous two years, the stock market’s performance this year has been a sobering affair, marked by a notable absence of vigour. continue…

by Roger Montgomery Posted in Technology & Telecommunications.

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