In our view, we remain in the opening stages of an AI–driven investment cycle that we believe will transform the global economy. It’s a topic that our investment team recently discussed in detail.
However, as AI adoption accelerates across industries, the path has been anything but linear. In 2025, there was volatility as the emergence of DeepSeek raised concerns that increasingly powerful, low-cost AI models could compress pricing and undermine monetization assumptions. AI-driven market volatility resurfaced in early 2026, with software stocks coming under renewed pressure as investors grapple with determining how the rise of AI will impact business models and future profitability.
Against this backdrop, Jennison’s Zac Gill, a global equity research analyst specializing in technology, fintech, and internet companies, recently shared his perspective—providing important context on AI-driven volatility and where Jennison sees the most compelling opportunities emerging.
Key Takeaways:
- Maintaining positive stance on AI infrastructure, particularly semiconductor equipment and TSMC
- Focused on software enablers and infrastructure rather than traditional seat-based software, which is facing disruption
- Google represents a significant position based on search integration and consumer AI platform strength
- Financing for the AI buildout expected to come together through diversified capital sources
- Monitoring user adoption, enterprise integration, and product development cycles as key indicators.
The views expressed herein are those of Jennison investment professionals at the time the comments were made and may not be reflective of their current opinions and are subject to change without notice. Neither the information contained herein nor any opinion expressed shall be construed to constitute an offer to sell or a solicitation to buy any security.
Certain information in this commentary has been obtained from sources believed to be reliable as of the date presented; however, we cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance (or such earlier date as referenced herein) and is subject to change without notice. The manager has no obligation to update any or all such information, nor do we make any express or implied warranties or representations as to the completeness or accuracy. Any projections or forecasts presented herein are subject to change without notice. Actual data will vary and may not be reflected here. Projections and forecasts are subject to high levels of uncertainty. Accordingly, any projections or forecasts should be viewed as merely representative of a broad range of possible outcomes. Projections or forecasts are estimated, based on assumptions, subject to significant revision, and may change materially as economic and market conditions change.
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