Investors are navigating a volatile stretch as weakness in software stocks and uncertainty around new AI tools weigh on sentiment. With near-term noise clouding the outlook for parts of the technology sector, attention is shifting toward areas seen as more insulated from disruption and supported by longer-term demand trends.
BNN Bloomberg spoke with Shiraz Ahmed, CEO of Sartorial Wealth, about three stocks he believes offer exposure to structural themes including rising electricity demand from AI data centres, grid modernization and diversified financial services earnings.
Key Takeaways
- AI-related uncertainty has pressured software stocks, but concerns about near-term disruption may be overblown for mission-critical enterprise systems.
- Rising electricity demand from AI data centres is creating long-term tailwinds for utilities and power providers with scale and regulated cash flows.
- Grid modernization and transmission spending are emerging as direct beneficiaries of AI-driven power needs, supported by multi-year infrastructure investment.
- Infrastructure contractors linked to power and data centre buildouts offer strong growth potential but carry valuation risk after sharp gains.
- Diversified financial firms with large wealth management businesses can balance cyclical swings with steadier, fee-based revenue streams.
Read the full transcript below:
ANDREW: Welcome back. A big theme over the past week and more has been weakness in software companies, contributing to volatility. Our guest has some ideas for your portfolio that he thinks will cut through the noise. We’re joined by Shiraz Ahmed, CEO of Sartorial Wealth. Great to see you.
SHIRAZ: Thank you. Great to be back.
ANDREW: And of course, you’re a quant — a mathematically focused player.
SHIRAZ: Absolutely. As a portfolio manager, we tend to focus more on momentum as our primary factor, but also on risk-adjusted returns and a few other variables as well.
ANDREW: Give me your broad thoughts on the pessimism we’re seeing in software stocks. Maybe we can look at a five-year chart for Adobe as an example. That seems to have a lot of downward momentum right now.
SHIRAZ: It does right now. Again, I think some of it may end up being overblown as time progresses. We’re now seeing the application of AI being called into question. Before, it was more about simple question-and-answer use cases. Now we’re seeing it deal with more complex needs. That creates concern that SaaS or software in general may be at risk. We’re not yet sure who the obvious winners and losers will be over time, but it’s something everyone needs to be watching. I think sentiment is a bit overblown right now.
ANDREW: One term we’re hearing more is “vibe coding,” where you use AI and natural language to build software.
SHIRAZ: Yes, it’s remarkable what it can do. You don’t need to know anything about coding. Just a few years ago, the message — especially to younger people — was to learn coding. Now, suddenly, everybody’s vibe coding. It’s definitely disruptive, but I don’t think software companies are going to vanish, at least in the short term.
ANDREW: The Wall Street Journal’s Heard on the Street column says the belief that major corporations will replace highly complex software platforms with vibe-coded apps is a stretch, especially for mission-critical systems like payroll.
SHIRAZ: These systems are extremely complex, so I don’t think replacement will be easy. Over time, maybe there’s some risk, but in the short term, I don’t see it. This feels more like an excuse to reassess stretched valuations in AI and take some profits.
ANDREW: You’ve brought some ideas. Let’s start with your first one, NextEra Energy. What attracts you to NEE?
SHIRAZ: If AI remains a big theme going forward, this is a picks-and-shovels play. NextEra is one of the largest electric utilities in the world by market capitalization. Data centres need power, and they’ve signed multiple deals with hyperscalers. It’s a way to play AI without owning the hyperscalers themselves.
ANDREW: What about Quanta Services, PWR? Remind us what they do.
SHIRAZ: Quanta is an infrastructure play on the energy side — another picks-and-shovels opportunity. If AI still has legs, the U.S. needs electrification and continued grid modernization, and Quanta is one of the best ways to gain exposure to that.
ANDREW: That stock is up more than 50 per cent over the past year. Like many stocks, it bottomed in April. Do you track the risk of euphoria in certain sectors?
SHIRAZ: We’re always aware of it. Momentum investing is about the idea that the trend is your friend. Right now, the trend still is. We often miss the first part of a rally and the last part, but aim to capture the middle, which is the goal.
ANDREW: “Meet in the middle.” Your final idea is Morgan Stanley.
SHIRAZ: This is a much more stable name relative to the other two. Morgan Stanley is a diversified financial services firm. They’ve done a phenomenal job in investment banking and M&A, and wealth and asset management have been major revenue drivers. It’s an asset manager with more than $9 trillion under management, and it’s been a very stable company for quite some time.
ANDREW: The Wall Street Journal suggests private equity may start looking at some beaten-down software companies, with valuations falling sharply.
SHIRAZ: There could be opportunities for private equity to step in. That uncertainty is why some investors are taking a wait-and-see approach. I do think there will be opportunities in software over time.
ANDREW: At your own shop, are you using AI to code?
SHIRAZ: Absolutely. We use AI in the background, including deploying AI agents to help filter the investable universe. But you can’t use it blindly. Some outputs can be factually inaccurate, so you still need trained human oversight.
ANDREW: Thanks very much.
SHIRAZ: My pleasure.
ANDREW: That was Shiraz Ahmed, CEO of Sartorial Wealth.
---
This BNN Bloomberg summary and transcript of the Feb. 5, 2026 interview with Shiraz Ahmed 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.
