Despite growing skepticism surrounding artificial intelligence stocks, veteran technology investor Brian Barbetta believes the AI revolution is still in its early innings and that investors continue to underestimate the scale and duration of the opportunity.

Barbetta, co-head of technology investing at Wellington Management, oversees approximately $40 billion in assets and regularly interacts with leaders from major AI companies, including OpenAI, Anthropic and SpaceX.

Why AI Growth Could Last Longer Than Investors Expect

According to Barbetta, many investors incorrectly assume that large technology companies will eventually see growth slow because of their size. Instead, he argues that AI is creating entirely new markets, allowing leading companies to expand far longer than traditional business cycles would suggest.

He points to Alphabet as an example. Despite its enormous scale, Alphabet continues to generate strong growth through innovation and AI-powered products.

Barbetta believes AI differs from previous technology revolutions because it can increasingly improve and utilize itself. Unlike earlier shifts such as mobile computing or the internet, where human adoption was the primary growth driver, AI systems themselves are generating new demand and productivity gains.

Real-World AI Returns Are Already Emerging

The investor highlighted several examples of companies already benefiting from AI:

• Uber Technologies uses AI to accurately predict most ride demand and improve operational efficiency.
• Verizon Communications has reported improved customer satisfaction and significant energy savings through AI-driven infrastructure optimization.
• Enterprises across industries are increasingly reporting measurable returns on AI investments rather than simply experimenting with the technology.

SpaceX, OpenAI and Anthropic IPOs Could Create New Opportunities

Barbetta expects upcoming IPOs from companies such as SpaceX, OpenAI and Anthropic to attract enormous investor interest.

However, he does not believe these listings will significantly hurt the broader technology market. Instead, he sees opportunities to gradually build positions after lockup periods expire and additional shares become available.

Companies Investors May Be Misjudging

Barbetta argues that some businesses currently viewed as AI losers may actually become major beneficiaries.

Samsara

The company combines hardware and software to digitize physical infrastructure. Its AI-enabled cameras, sensors and monitoring systems help improve safety, reduce costs and increase operational efficiency.

Barbetta believes the market underestimates Samsara's long-term growth potential.

Unity Software

Many investors fear AI-generated content will reduce demand for Unity's game-development tools. Barbetta disagrees, arguing that AI can accelerate game creation, improve monetization and enhance Unity's platform value.

Still Bullish on AI Infrastructure

While some investors worry that AI-related spending is peaking, Barbetta remains positive on key infrastructure providers.

His preferred beneficiaries include:

• NVIDIA
• Taiwan Semiconductor Manufacturing Company
• ASML Holding

He believes the market still underestimates how long the AI investment cycle may last.

In particular, ASML remains critical because it is effectively the sole supplier of extreme ultraviolet (EUV) lithography machines needed to manufacture the world's most advanced chips.

What Could Change the Bullish AI Thesis?

Barbetta identifies two major risks:

1. Increased Competition for NVIDIA

While he remains positive on NVIDIA, stronger competition could eventually reduce the company's pricing power, profitability and growth.

2. A Major AI Efficiency Breakthrough

Future breakthroughs could dramatically reduce computing requirements, lowering demand for expensive chips, networking equipment and data-center infrastructure.

If AI models become significantly more efficient, today's infrastructure spending boom could slow.

Geopolitical Risks Remain Important

Barbetta acknowledges concerns surrounding AI regulation, semiconductor export controls and geopolitical tensions involving China and Taiwan.

However, he notes that companies continue finding ways to access AI services through global cloud infrastructure, suggesting that demand for advanced AI capabilities remains extremely strong despite political restrictions.

He also believes Taiwan's manufacturing expansion in the United States should help reduce some investor concerns about concentration risk.

Bottom Line

Barbetta's core message is straightforward: investors are focusing too heavily on short-term valuation concerns while underestimating the long-term economic impact of AI.

He sees continued opportunity in AI infrastructure leaders such as NVIDIA, Taiwan Semiconductor Manufacturing Company and ASML Holding, while also identifying overlooked beneficiaries like Samsara and Unity Software.

His view is that AI adoption remains supply-constrained rather than demand-constrained, suggesting the industry's growth runway may be far longer than many investors currently expect.