TSSI and the Future of AI Infrastructure

Maj considers whether the market has already priced in the AI-related tailwinds for TSS, given its ties to Dell and the hyperscaler market. He speculates that TSS may look to acquire businesses for diversification and highlights the company’s government division as a key revenue driver. However, he raises concerns about the sustainability of demand once hyperscalers complete their data center build-outs, questioning whether smaller businesses will pick up the slack. He remains uncertain about the long-term revenue trajectory but acknowledges potential growth opportunities.

Skepticism Around AI Spending and Market Realities

Sean suggests that recent AI-related spending may be more of a financing strategy for OpenAI rather than a true new investment push. He notes that major players, like SoftBank’s Masa Son, may be structuring these deals to bring in external funding. He also references Elon Musk’s claim that there isn’t actually $500 billion allocated for AI investment, but rather a significantly lower figure.

The Challenge of Predicting Policy-Driven Market Trends

Jason Hirschman from Hudson 215 Capital shifts the conversation back to the unpredictability of politics in investment decisions. He points out that major geopolitical and economic events, such as 9/11 and COVID-19, were unforeseeable and had significant policy ramifications. Given that most federal spending is tied up in entitlements, he argues that policy changes affecting specific stocks are often minor and difficult to forecast.

Maj’s Investment Approach

Maj agrees, explaining that he mitigates political risks through portfolio diversification. He prefers investing in strong businesses and treating favorable policy outcomes as added bonuses rather than core investment theses. However, he remains open to exploring investment opportunities once concrete trends emerge, particularly when government money begins flowing into specific sectors.