Making Sense Examining the AI value chain with Horizon Global Partners
24 snips
Mar 13, 2026 Fawaz Chaudhry, CIO of Horizon Global Partners and thematic equity investor, on why value is shifting from software to chips. Short-term winners are semiconductors, foundries and tools as AI infrastructure booms. He also covers inflationary shocks, commodities and precious metals, geographic shifts toward Asia in hardware, and rising defense and vertical supply-stack trends.
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Three Shocks Ended The 40 Year Bond Rally
- Three recent shocks—the pandemic, the European land war and global tariffs—have all been inflationary and ended the 40-year bond rally.
- Rising long-term risk-free rates have elevated required returns across asset classes and revived investor demand for equities.
AI As A General Purpose Productivity Force
- AI is a general purpose technology that will permeate goods and services, likely yielding disinflationary productivity gains over time.
- Fawaz expects AI to raise real rates and cause rapid disruption as it becomes embedded across industries beyond apps.
Prioritize Hardware Exposure Over Software Now
- Focus near term on hardware and chips because value is shifting from software to silicon as AI demand grows.
- Fawaz recommends electrical engineering careers and highlights market leaders like TSMC, NVIDIA, Broadcom and ASML.