How the AI Infrastructure Boom is Reshaping the Case for Small and Mid Cap Equities
In this episode of the Pender podcast, Aman Budhwar, Portfolio Manager of the Pender US Small/Mid Cap Equity Fund, sits down with host Laura Baker, Associate Client Portfolio Manager, to explore why the AI story extends far beyond the mega caps and how small and mid-cap equities can offer an alternative way to participate in its growth. They discuss the record concentration driving the S&P 500 and Nasdaq, the valuation and growth divergence between large and small/mid cap companies, and how "picks and shovels" businesses in data center infrastructure are positioned to benefit from the AI capital investment boom.
00:00
Why record concentration in the S&P 500 and Nasdaq means investors may want to look beyond the Magnificent Seven
06:26
The valuation opportunity: small/mid caps trading at a discount to large caps for the first time in years, despite faster projected earnings growth
08:15
What held small/mid caps back
10:19
The AI "picks and shovels" trade
13:34
Why this AI CapEx cycle is different from the dot-com boom, and how durable the current investment cycle really is
17:23
Healthcare as a differentiator
36:13
Portfolio construction
