Francisco Bido, senior portfolio manager at F/m Investments, shared insights on the technology sector’s future during a recent interview with BNN Bloomberg. He emphasized the significant role of artificial intelligence (AI) infrastructure and data centers in shaping investment strategies for 2026 and beyond.
The technology landscape is undergoing rapid transformation, with AI leading a new wave of investments in infrastructure, data centers, and networking solutions. As the market matures, Bido noted that investors are increasingly balancing growth potential against valuation concerns.
Bido highlighted that AI infrastructure is projected to remain a major growth driver as investments in data centers and hyperscalers continue. He pointed out that investors are now looking beyond traditional graphics processing units (GPUs) to include networking and connectivity as fundamental components of AI systems.
Valuation discipline is becoming more critical as the explosive growth of AI moderates from unprecedented levels. Bido advocates for diversification away from dominant market leaders as a risk management strategy in AI investing. He specifically mentioned that companies demonstrating strong earnings growth alongside reasonable price-to-earnings-growth (PEG) ratios are likely to be well-positioned for the next phase of AI expansion.
In discussing specific investment picks, Bido expressed optimism about Advanced Micro Devices (AMD), calling it a diversification play on Nvidia. He noted that despite Nvidia’s dominant position in the industry, AMD’s new partnerships with OpenAI, Oracle, and others create a promising outlook for future earnings. Bido remarked, “Playing second fiddle is a great place to be.”
Turning to his second pick, Astera Labs, Bido acknowledged its growth trajectory despite recent market corrections. “When it comes to AI infrastructure, everyone focuses on GPUs, but bottlenecks can occur, and all the routing that needs to happen between those GPUs is critical,” he explained. With earnings growing at approximately 40 percent annually, Astera Labs presents an appealing investment opportunity.
Bido expressed confidence that the AI revolution is only in its early stages, with the industry expanding at a remarkable 25 percent clip. “It’s rare to see that kind of growth unless something truly transformative is happening,” he stated, indicating that he expects this trend to persist into 2026.
His final pick, Broadcom, was described as another strategic play on networking and infrastructure that supports hyperscalers beyond GPUs. Bido noted Broadcom’s strong margins and robust free cash flow generation, which enhance its investment appeal as the stock trades below its recent highs.
As Bido analyzed the investment landscape, he suggested that the focus may shift away from the chipmakers that garnered significant attention in 2025. “AI can’t grow at the pace we’ve seen forever, so some slowdown is expected and tends to get priced in,” he remarked. This reinforces his commitment to seeking companies that are appropriately valued, with AMD and his other selections standing out due to their reasonable PEG ratios.
Looking ahead, Bido remains optimistic about the continued excitement surrounding AI in 2026. While he acknowledged that the pace may not match the previous year, he asserted that there will still be ample opportunities for growth and innovation in the sector.
For investors, Bido’s insights underscore the importance of strategic diversification and prudent valuation as they navigate the evolving AI landscape.
For more information on the companies discussed, refer to their official pages: AMD, Nvidia, OpenAI, Oracle, and Broadcom.
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