While he may have been a year early, Griffin believes the stock is far more attractive today than it was back then.
“The underlying earnings of the company have actually got significantly better,” he says.
“We think this is just the beginning of the artificial intelligence (AI) runway… [It] should last three to five years at least. But is there an element of pull forward in that? Yeah, there could be… And I think that’s what people are grappling with now.”
That said, the stock is now trading on 25 times next year’s earnings, versus 50 times earnings at the start of the year. But the real question of the company’s long-term success lies in whether or not we end up really using AI products, he added.
Interestingly, Microsoft (NASDAQ: MSFT) has doubled down on its investment in AI, with CEO Satya Nadella likening the AI revolution to the widespread grasp of the mobile phone.
For more on this exciting opportunity, I sat down with Griffin for a look at how he is thinking about markets today ahead of his appearance at Livewire Live next week. He shares where he is seeing little (and a lot of) opportunity, as well as what the peak of the cash rate cycle could mean for growth investors like Munro Partners.
