Mark Mahaney, Senior Managing Director at Evercore ISI, discussed how AI is reshaping the tech industry with Bloomberg’s Alix Steel and Paul Sweeney at the Bloomberg Invest conference in New York City. Amid a market downturn, with the Nasdaq 100 now trading below its 200-day moving average, Mahaney cited two reasons for the tech part of the sell-off.
First, he said the tech sector has witnessed phenomenal outperformance in the last two and a half years. Therefore, a mean reversion scenario implies that stocks that have significantly outperformed will eventually face downward adjustments. The second reason that he quoted is the tariff issues upending businesses, depending on how well-hedged they are.
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“Equity valuations have been very elevated and there’s been yellow flags all over the horizon given moves to cut government spending. Now on top of that, we have all this rhetoric around tariffs.”
-Ben McMillan, chief investment officer at IDX Insights in Tampa, Florida.
It’s not only the tech stocks that are going to be affected by the tariffs issue. According to McMillan, Wall Street is really concerned. “The likelihood of tariffs will lead to higher prices and therefore lower spending.”
“The fear here is that it’s going to slow (economic) growth. And when you have a slowdown in economic conditions, it’s a situation where banks specifically make less money because fewer goods and services are traveling through the economy.”
-Adam Sarhan, CEO of 50 Park Investments in New York.
Market volatility and tariff concerns may be shaping the tech sector, but another key factor has been influencing investor sentiment. When asked about a misconception in the AI world, Mahaney pointed to DeepSeek, stating that there was a misapprehension that the innovation would be highly disruptive for the hyperscalers.
He believes that the opposite has happened and that infrastructure has become a lot cheaper, with investors likely to get the money they have spent on capital expenditure, as well as a better return.
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12. Blaize Holdings, Inc. (NASDAQ:BZAI)
Blaize Holdings, Inc. (NASDAQ:BZAI) provides purpose-built, artificial intelligence (“AI”)-enabled edge computing solutions. On March 4th, the company announced that it has entered into a joint technology agreement with the South Korea-based KAIST Institute for NanoCentury (“KINC”) of the Korea Advanced Institute of Science and Technology (“KAIST”). The university and business research and development collaboration aims to co-develop prototypes and technology solutions as well as produce new edge AI computing applications. The two organizations also plan to exchange personnel with each other to trade information, provide education, engage in joint research, as well as hold joint workshops and conferences to broaden comprehension of the applications of AI-based chips and edge computing.
“KAIST is at the cutting edge in scientific and engineering discovery, producing groundbreaking research in fields such as robotics, artificial intelligence and nanotechnology. Blaize is excited to partner with KAIST to develop the next generation of edge AI computing technologies.”
-Dinakar Munagala, chief executive officer of Blaize.
11. Freight Technologies, Inc. (NASDAQ:FRGT)
Freight Technologies, Inc. (NASDAQ:FRGT) is a logistics management innovation and technology company that provides a vast portfolio of technology-driven solutions. On March 4th, the company announced the launch of its advanced AI Tendering Bot, an innovative solution aimed at automating and streamlining the load tendering process for shippers and freight brokers. This innovation marks a strategic shift to a Software-as-a-Service (SaaS) model, enabling the company to achieve operational improvements and efficiencies through new technology.
The AI Tendering Bot identifies key load information, posts structured load data into the Fr8app marketplace, and then automates the transcription and organization of load requests, thereby reducing manual intervention. It has been fully integrated also with Fleet Rocket, Fr8Tech’s cutting-edge Transport Management Systems (TMS) solution for brokers, achieving enhanced efficiency, cost reductions, improved accuracy, and real-time visibility.
“Our new AI Tendering Bot represents a significant milestone in Fr8Tech’s digital transformation journey. By automating the load tendering process, we are not only driving down operational costs but also delivering faster, more reliable service to our customers. This innovation aligns perfectly with our 2025 targets: to automate our operations, enhance service levels for key enterprise clients, and expand the innovative capabilities of our SaaS TMS solution, Fleet Rocket. Developed in collaboration with Trebu.ai, a Y Combinator-backed startup specializing in AI automation, this bot leverages cutting-edge technology to streamline freight management like never before.”
-Javier Selgas, CEO of Fr8Tech.