Key insights
- The author posits that growing public backlash against AI could negatively impact companies heavily investing in AI-related products. They suggest allocating capital towards companies focused on human-made products, anticipating increased demand for such goods. The author cites Nintendo (NTDOY), Hermes (HESAY), and Games Workshop (GWMKF) as potential beneficiaries of this trend. However, the overall impact on US equities is expected to be limited.
I think the hatred towards AI is going to cause massive problems for companies that are funneling all of their free cash-flow into AI related products.
There’s already backlash towards AI products especially among Gen Z and younger. I think it’s wise to allocate a good portion of your portfolio towards companies that focus on human made products and ones that aren’t constantly shoving AI in your face.
People will likely seek out these kinds of companies in the future as they will be few and far between. A good analogy is going on Etsy is sifting through all of the Chinese slop to find actual hand made products. I think the demand for things like this will only increase, especially come the next election cycle.
This is just a theory of mine, but I think it’s a very likely shift among our population, especially in America.
Some tickers: NTDOY HESAY GWMKF