This article was originally written for publication in the JEP.
Artificial intelligence (AI) is no longer the preserve of research labs or speculative start-ups. It is emerging as a defining force across industries, and it is starting to reshape how companies operate, how they compete, and ultimately, how they generate value for shareholders. As an investment manager, preserving and growing our clients’ wealth amidst a backdrop of geopolitical turmoil, booming debt burdens, and currency debasement, understanding defining trends such as this will be vital to our success.
At its core, AI is a tool for efficiency and is quickly becoming table stakes for business. It not only automates processes and optimises supply chains but also sparks innovation by creating new products and revenue streams.
For long-term investors, the ability to identify companies best placed to harness AI is an important part of delivering consistent returns. Within the Titan Blue Chip Fund, a number of leading global businesses exemplify this trend..
Microsoft – AI at the centre of enterprise software
Microsoft has embedded AI into its core productivity tools, from Copilot in Office to enhanced cloud services on Azure. These applications weave AI into the fabric of enterprise software improving productivity and operational efficiency. In doing so, customer reliance on its ecosystem grows, creating a symbiotic relationship that generates a powerful growth engine for shareholders.
Nvidia and Advanced Micro Devices – the infrastructure on which all is built
I’ll caveat that these are two of a number of infrastructure investments we own, but they are certainly leaders in their field competing bitterly for every inch of available rack space in every datacentre. AI models require vast computational power, and this has created an unprecedented demand for the most powerful semiconductors. Nvidia’s graphics processing units (GPUs) have become the industry standard for training and deploying AI systems, while Advanced Micro Devices (AMD) is pushing forward with price competitive alternatives suitable for different workloads. These are just two companies that stand at the foundation of AI’s physical infrastructure, benefiting from growing demand across all sectors.
Amazon – scale and efficiency
Amazon’s global operations provide fertile ground for AI deployment. From optimising logistics networks to powering its recommendation engines, AI underpins the company’s ability to operate at scale. Its cloud division, Amazon Web Services (AWS), is also a critical enabler for other companies adopting AI, making it a beneficiary of the broader AI economy. Efficiency gains translate directly into improved margins, while AWS positions Amazon as an indispensable player in the digital ecosystem.
Meta - reinventing social and commercial engagement
While best known for its social media platforms, Meta is using AI to drive more effective advertising, improve content delivery, and support new product development. AI tools enable highly targeted advertising, which remains the company’s primary source of revenue. At the same time, the firm is making gargantuan investments in AI research to support longer-term ambitions in immersive technologies, where intelligent systems will be key to building the next phase of digital interaction.
Honeywell and L3Harris Technologies - AI beyond big tech
AI’s impact extends beyond the digital giants. As an example, Honeywell is applying AI across industrial automation, aerospace, and energy efficiency, helping customers reduce costs and meet business targets. Similarly, L3Harris Technologies is harnessing AI in advanced defence systems, where speed of decision-making and predictive capability are mission-critical. These companies demonstrate that AI’s value is not confined to consumer technology; it is reshaping traditional industries as well.
What does this mean for investors?
We believe AI adoption is rapidly becoming table stakes for those that wish to remain competitive let alone relevant. Firms that successfully adopt AI can improve operational efficiency, strengthen competitive positioning, and possibly expand into new growth markets. For investors, this translates into the potential for more resilient earnings and stronger long-term returns.
Of course, AI adoption is not without risks. The technology is evolving rapidly, regulatory frameworks are still being defined, and the competitive landscape remains fluid. However, these uncertainties are characteristic of transformative innovation. For diversified portfolios that focus on market leaders with the scale and expertise to implement AI effectively, the long-term opportunity is compelling.
AI is changing the rules of competition. Companies that can harness it effectively are likely to lead their industries, capture outsized market share, and deliver superior value to investors. For the Titan Global Blue Chip Fund, investing in businesses at the forefront of this change is central to our objective: delivering sustainable, long-term growth for our clients.
