In this episode of Connected Investor, Brunner Investment Trust Portfolio Managers Julian Bishop and James Ashworth look back at previous capital cycles to explore what the past could teach present investors about the extraordinary levels of investment flowing into AI infrastructure today.
From the iron ore supercycle driven by China's rapid industrialisation to the US shale revolution, Julian and James examine how rising demand and high profitability can encourage significant investment in new capacity, and how increasing supply can ultimately put pressure on prices and returns.
Turning to AI, they discuss whether computing capacity could display similar characteristics, why investors should pay as much attention to supply as demand, and whether today's rapid expansion in data-centre infrastructure risks creating oversupply in the future.
Listen now for insights into capital cycles, the economics behind the AI infrastructure boom and why some of the oldest lessons in investing may still be relevant to one of today's newest technologies.
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