The AI Bubble and How to Stay Out of the Bath

Will the AI bubble burst? Is there even an AI bubble? Are bubbles good or bad for early-stage tech investors?

We get a lot of questions asked of us at the HPQC Fund. We do try to answer them all.

Investors are rightly fascinated by the explosive growth of AI, but beneath the rapid shifts in software and public-market sentiment lies a far more durable transformation.

As Matthew Gould, Portfolio Manager of the ICM HPQC Fund, notes, the real opportunity is not in chasing the next AI application or inflated valuation spike - it is in the physical infrastructure that makes the entire ecosystem possible.

Compute, storage, chip design, switching fabric, and data-centre architecture are governed by physics and fundamentals, not hype.

While software winners come and go, the demand for hardened processing power and infrastructure is only accelerating. And that is where HPQC Fund chooses to invest.

Access the full AI paper here.

The information in this article should not be considered an offer or solicitation to deal in ICM HPQC Fund (Registration number T22VC0112B-SF003) (the “Sub-fund”). The information is provided on a general basis for informational purposes only and is not to be relied upon as investment, legal, tax, or other advice. It does not take into account the investment objectives, financial situation, or particular needs of any specific investor. The information presented has been obtained from sources believed to be reliable, but no representation or warranty is given or may be implied that it is accurate or complete. The Investment Manager reserves the right to amend the information contained herein at any time, without notice. Investments in the Sub-fund are subject to investment risks, including the possible loss of the principal amount invested. The value of investments and the income derived therefrom may fall or rise. Past performance is not indicative of future performance. Investors should seek relevant professional advice before making any investment decision. This document is intended solely for institutional investors and accredited investors as defined under the Securities and Futures Act (Cap. 289) of Singapore. This document has not been reviewed by the Monetary Authority of Singapore.

ICM HPQC Fund is a registered Sub-Fund of the ICMGF VCC (the VCC), a variable capital company incorporated in the Republic of Singapore. The assets and liabilities of ICM HPQC Fund are segregated from other Sub-Funds of the VCC, in accordance with Section 29 of the VCC Act.