How should investors think about the next phase of the AI investment cycle?

In this NYSE Live interview, Sam Rahman, Portfolio Manager at Hedgeye Asset Management, discusses artificial intelligence, market leadership, technology investing, and the opportunities he sees emerging across industries as AI adoption accelerates.

Rahman joins NYSE Live following Hedgeye's Opening Bell ceremony celebrating its NYSE-listed ETFs and explains how the firm's investment process combines fundamental research, thematic analysis, and quantitative macroeconomic insights to identify long-term investment opportunities.

A major focus of the conversation is the evolution of the AI trade. Rahman explains that the market is moving beyond the early phase where nearly every AI-related company benefited from investor enthusiasm. As the sector matures, investors are becoming increasingly focused on identifying the businesses best positioned to generate sustainable returns, supported by strong cash flows, durable competitive advantages, and the financial resources needed to continue investing in AI infrastructure.

The interview also explores data centers, technology spending, and the significant capital investment being directed toward AI development. Rahman discusses how investors are evaluating which companies are best positioned to benefit from the expansion of AI platforms and computing capabilities.

Another key theme is the growing adoption of AI outside the technology sector. Rahman highlights opportunities in industries including healthcare, biotechnology, financial services, and industrials, where businesses are increasingly exploring how artificial intelligence can improve operations, accelerate research, boost productivity, and support innovation.

The discussion specifically examines AI's potential impact on healthcare and drug development. Rahman explains how AI-powered research tools may help improve molecule discovery, optimize clinical development processes, and accelerate the delivery of new treatments to patients.

The conversation also addresses valuation and market expectations. Rahman argues that while investors are heavily focused on the near-term implications of AI, the market may still be underestimating the technology's long-term impact. He suggests that transformative innovations often create far-reaching effects that become apparent only over extended periods of time.

Looking ahead, Rahman discusses what he believes could be the next major phase of AI adoption: consumer-facing applications. Drawing comparisons to the early internet era, he explains that while enterprise productivity tools have already begun transforming the business landscape, future growth may increasingly come from applications that directly impact daily consumer experiences.

Throughout the interview, Rahman shares perspectives on artificial intelligence, technology investing, market leadership, innovation, healthcare advancements, productivity gains, software development, consumer applications, and the long-term future of AI-driven growth.

Disclaimer: Informational content only. NYSE does not endorse or recommend investments, strategies, companies, products, or services discussed.