EXCLUSIVE: Cybersecurity Critical For AI Growth — ‘The Five Players Get Bigger… And Hopefully Better,’ Says Stephanie Link – NVIDIA (NASDAQ:NVDA)

At the recent Benzinga virtual event, “AI Unleashed: Exploring the Possibilities,” Stephanie Link, chief investment strategist and portfolio manager at Hightower Advisors, announced a new focus on investing in India. The event examined artificial intelligence’s potential and highlighted Link’s strategy to diversify her portfolio by tapping into emerging markets.

Investing in India’s Economic Potential

Link shared her latest investment strategy centered on India, underscoring the country’s strong economic growth and promising future. “India is growing at 7% GDP, and their earnings are expected to come in at something like 15% for the next several years,” Link explained.

She pointed out India’s fiscal policies, demographics, and rapidly expanding middle class as compelling reasons for her investment. “They have the largest population in the world and favorable fiscal policies,” she added, emphasizing the long-term potential she sees in the region.

Link mentioned her investment in an India-focused ETF, noting its concentrated portfolio of 132 names with significant positions in companies poised to benefit from the country’s growth. “Reliance Industries, the largest position within the ETF, will benefit from power generation, energy grid infrastructure, and other critical areas,” she said, highlighting the focus of her investment.

AI’s Impact on the Semiconductor Industry

During the interview, Link also highlighted Nvidia Corp‘s (NASDAQ:NVDA) impressive performance following its recent earnings report. The company’s market cap surged by $250 billion in a single day, reflecting the substantial investments by hyper scalars in cloud and generative AI technologies.

“The hyper scalars told us how much money they were spending on cloud and Gen AI, with the four largest hyper scalars going to spend $177 billion this year, up 35% year over year,” Link noted. Nvidia’s dominance in the data center market has positioned it to benefit substantially from these investments.

Link emphasized that other companies in the semiconductor industry, such as Quanta Services and Eaton Corp, are set to gain from the increased demand for AI-related infrastructure. She mentioned a notable comment from Quanta Services’ CEO Earl Austin about the immense power requirements for data centers: “The amount of power that is going to be needed for data centers is mind-boggling.”

The Growing Importance of Cybersecurity

The conversation also touched on cybersecurity, which Link described as equally important as AI. With the increasing amount of data generated by AI technologies, cybersecurity has become a critical concern.

Link expressed her belief in the potential for consolidation within the cybersecurity industry, predicting that major players will continue to grow through mergers and acquisitions. “I think the five players get bigger and bigger, and hopefully better,” she said, highlighting the need for improved technology to combat sophisticated cyber threats.

Game-Changing Developments

Link’s participation in the Benzinga AI Unleashed event provided valuable insights into the intersection of AI and investment strategies. Her focus on India’s economic potential and insights into the semiconductor and cybersecurity sectors highlight the dynamic nature of today’s investment landscape.

As companies and investors continue to explore these opportunities, Link’s expertise offers a strategic perspective on leveraging growth in emerging markets and the transformative power of AI.