LC Ideas: Views & Insights
AI markets surge - Where are the paths to resilient growth?
Table of Contents
Artificial Intelligence is accelerating business transformation, but the investor task is clear, according to Antoine Bracq, Managing Director–Head of Investment Advisory at Lighthouse Canton: capture structural growth without paying unsustainable prices. The parallels with past market manias are obvious, yet unlike the dotcom or crypto waves, AI’s adoption curve is real and rising.
“Instead of looking for pockets of exuberance that exist, focus on durable winners and attractive, under-owned growth markets,”
That mix of caution and opportunity should be shaping a new playbook for investors, according to Bracq in a recent conversation with Lighthouse Canton's IDEAs Views & Insights, with an emphasis on anchoring portfolios with core holdings, identifying disciplined re-entry levels, and widening exposure to geographies where growth and valuations still align.
CORE HOLDINGS IN THE AI ERA
The most dependable way to participate in AI is through established US technology leaders with balance sheets and scale that can withstand hype cycles.
Bracq is unequivocal: “Microsoft, Amazon and Google are fairly priced.” He justifies this by sharing how these companies are embedding AI across product lines and enterprise ecosystems, ensuring their adoption curve translates into recurring earnings.
Nvidia remains at the heart of the AI supply chain. While its valuation looks elevated compared with history, Bracq views it as a long-term anchor.
“Nvidia is well positioned. It has become more like a Google — just hold it for the next 5–10 years,” he said. The stock has already delivered its exponential surge, but its dominance in chips for data centers and AI infrastructure ensures it will remain a beneficiary as AI spending compounds, according to him.
Source: Statista
That concentration of value is why not all semiconductor companies should be treated alike. “Only a few will benefit from AI,” Bracq warned. “Even a stock like Intel is not benefiting, because they have fallen so much on the technology front.”
ALSO READ: Are family offices really embracing AI as a long term thematic bet?
ALSO READ: Equity Insights: Not Just Generative - Agentic AI Is Coming, and It’s Redefining Compute
ALSO READ: Equity Insight: Powering the AI Age - Utilities and the Infrastructure Backbone of Datacenters
The key is to differentiate is look for firms directly tied to AI demand and those still anchored in legacy markets with limited upside.
For investors, the message is to hold the names where growth is backed by durable business models, rather than chase every stock that attaches the AI label. This approach ensures, Bracq observed, exposure to the theme while reducing the risk of overpaying for speculation.
Source: Our World in Data
GEOGRAPHIC OPPORTUNITIES BEYOND THE US
Once portfolios are anchored in core US holdings, the next layer is geographic diversification. Here, Bracq sees Asia as a natural complement to American exposure.
India is particularly compelling. India's GDP growth for the financial year ending March 2025 was officially estimated at 6.5% by the Indian Ministry of Statistics and Programme Implementation. This is a growth rate, reflecting a resilient economy with strong domestic demand.
“India is a no-brainer for long-term investors,” Bracq observed.
China, meanwhile, offers value through discount valuations.
“China still offers attractive opportunities. Tencent and Baidu, for example, trade at roughly half the valuations of comparable US firms, despite similar profitability and growth prospects,” he said.
The fundamentals are intact, even if sentiment has weighed on multiples. For investors with a medium-term view, such gaps provide entry at levels that could compound strongly as policy stabilises and earnings expand.
Source: Visual Capitalist
By contrast, other developed Asian markets such as Japan, Korea, and Singapore lack the same structural upside.
The strategic play, therefore according to him, is to maintain a US core while layering in India’s growth story and China’s valuation discount. That mix combines resilience with access to under-owned growth markets.
Also read: Exceptionalism or exceptional opportunities? Investors reassess fundamentals and future plays
RE-ENTRY LEVELS, PRIVATE MARKETS AND PORTFOLIO RESILIENCE
The final piece of the allocation puzzle is timing. AI has fuelled a remarkable rally in certain names, but discipline around entry points remains essential.
Given that kind of price action, Bracq suggests that a 20-25% pullback across richly valued names is plausible if earnings revisions dip or macro risks mount. He does not believe in a systemic collapse on the scale of a dotcom-style crash or global financial crisis — so while some names may retrace, the downside should be contained if company fundamentals remain intact.
After laying out that risk, Bracq recommends deploying hedging tools to protect portfolios. Volatile markets make options strategies (such as put spreads) especially useful to cushion downside while preserving upside participation.
In the private-market AI arena, he remains wary: many current valuations assume steep growth and margin expansion that may not materialise. He says that at current valuation levels, private-market AI investments risks producing underwhelming vintages.
Finally, diversification into high-quality non-AI assets remains important.
“Brands in luxury and premium consumer sectors — such as LVMH, Lululemon, Nike — are trading well below prior peaks but still benefit from strong brand power and resilient consumer demand. These provide ballast when tech growth is challenged,” he concluded.
