The technology sector continues to evolve rapidly, with artificial intelligence driving a new wave of investment in infrastructure, data centres and networking. As the market matures, investors are increasingly weighing growth opportunities against valuation.
BNN Bloomberg spoke with Francisco Bido, senior portfolio manager at F/m Investments, about why AI infrastructure remains a compelling theme for 2026 and beyond, and how diversification, earnings growth and pricing discipline are shaping his outlook.
Key Takeaways
- AI infrastructure is expected to remain a major growth driver in 2026 as data centre and hyperscaler investment continues.
- Investors are increasingly looking beyond GPUs to networking and connectivity as critical components of AI systems.
- Valuation discipline is becoming more important as AI growth moderates from earlier breakneck levels.
- Diversification away from dominant market leaders is seen as a way to manage risk within AI investing.
- Companies with strong earnings growth and reasonable PEG ratios are viewed as well positioned for the next phase of AI expansion.
Read the full transcript below:
LINDSAY: The tech sector continues to see rapid growth, and our next guest is sticking with AI infrastructure for the new year. For more, we are joined by Francisco Bido, senior portfolio manager at F/m Investments. It’s great to have you with us. Happy New Year.
FRANCISCO: Thank you. Happy New Year.
LINDSAY: Let’s get to your first pick, AMD. What are you liking about the stock right now?
FRANCISCO: I like AMD because it’s essentially a diversification play on Nvidia. Nvidia is the 600-pound gorilla in the industry, but playing second fiddle is a great place to be. AMD has new partnerships with OpenAI, Oracle and others that were established heading into 2026, and that creates a strong outlook for future earnings.
LINDSAY: Your second pick is Astera Labs. The stock has seen some growth, but what else stands out to you when it comes to the company’s role in AI this year?
FRANCISCO: When it comes to AI infrastructure, everyone focuses on GPUs, which are at the heart of data centres and hyperscalers. But bottlenecks can occur, and all the routing that needs to happen between those GPUs is critical. That’s where Astera Labs comes in. The company is growing earnings at about 40 per cent a year, which is significant. The stock has corrected somewhat over the past couple of months, which makes it an attractive opportunity.
LINDSAY: Looking at the longer-term charts, you can see a sharp move higher near the end. Do you expect that to continue into 2026?
FRANCISCO: Yes, I do. We’re really just at the beginning of the AI revolution. The industry is growing at roughly a 25-per-cent clip, which is very significant. It’s rare to see that kind of growth unless something truly transformative is happening, and that’s what AI represents. I expect that trend to continue into 2026.
LINDSAY: Your final pick is Broadcom. You’ve mentioned earnings strength, but give us a bit more detail on why you like it.
FRANCISCO: For similar reasons to Astera Labs, Broadcom is another play on networking, switching and the infrastructure that supports hyperscalers beyond GPUs. On top of that, Broadcom has very strong margins, solid free cash flow generation, and the stock is a bit off its highs, which makes it attractive.
LINDSAY: When we look ahead to 2026, do you think the AI investment landscape is shifting away from the chipmakers that dominated headlines in 2025?
FRANCISCO: The market does a good job of anticipating where an industry is headed. AI can’t grow at the pace we’ve seen forever, so some slowdown is expected and tends to get priced in. That’s why I focus on companies that are appropriately valued. Right now, AMD and the other picks stand out because their PEG ratios, which adjust earnings by growth, look reasonable. Those are the kinds of opportunities I’m focused on heading into 2026.
LINDSAY: It sounds like you still expect plenty of excitement around AI in 2026. Do you think it will match what we saw in 2025?
FRANCISCO: We’ll see, but there should still be a lot to be excited about.
LINDSAY: Francisco Bido, senior portfolio manager at F/m Investments. Thanks very much for your time.
FRANCISCO: Thank you.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| AMD NASDAQ | Y | Y | N |
| ALAB NASDAQ | Y | Y | N |
| AVGO NASDAQ | Y | Y | N |
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This BNN Bloomberg summary and transcript of the Jan. 5, 2026 interview with Francisco Bido are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
