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Carmignac Portfolio Tech Solutions at the time of the AI revolution

Published on
3 December 2025
Read time
2 minute(s) read

As concerns about a potential artificial intelligence (AI) bubble continue to grow, investors are asking themselves: are AI companies overvalued? Balancing enthusiasm with reality, Kristofer Barrett, Head of Global Equities and Fund Manager of Carmignac Portfolio Tech Solutions, together with Somesh Batra, Technology Sector Analyst, address these worries and share their insights.

Speculative bubble or sustainable transformation?

The rise of AI is driving enthusiasm comparable to that seen during past major technological waves. Some companies in the sector are putting forward ambitious promises without any proven short-term profitability. For several of these players, market narratives already reflect developments that may only materialise years from now. Investors are therefore pricing in future scenarios prematurely, which limits the potential for future performance. This excessive anticipation of growth prospects is unfolding against a more constrained financing backdrop. In an environment marked by stress in the private debt market, this dynamic could also weaken the most indebted segments of the sector. Conversely, giants such as Alphabet, Microsoft and Amazon are financing their massive investments in AI through their own cash flows, thereby strengthening their core business and reinforcing their position in the technology value chain.

Despite the turmoil in financial markets at the start of 2025, AI-related growth remains robust: results from Nvidia, Microsoft, Alphabet and Amazon have continued to exceed expectations, supported by strong demand for computing power. The imbalance between limited supply, with data centre construction delays holding back production capacity, and soaring demand is bolstering the pricing power of industry leaders. In an environment where investment growth is normalising, these companies remain best positioned to turn AI from a speculative wave into a sustainable engine of value creation.

Carmignac Portfolio Tech Solutions: An opportunity to take part in this new wave of technological innovation

Convinced of the long-term potential of AI, this is one of the strong convictions of Carmignac Portfolio Tech Solutions, our global equity fund dedicated to technology stocks, launched in June 2024. AI is a central pillar of our investment approach, which we address across the entire value chain. Our selection extends beyond the sector’s major players. We also identify the less visible yet essential contributors to the ecosystem.

This approach allows us to uncover high-quality companies that are often absent from major indices but play a critical role in technological transformation. These are often small and mid-cap firms, which currently account for 12.5% of the portfolio1 and, in our view, offer particularly attractive long-term growth potential.

Beyond the American spotlight, Asia’s expanding influence

Although the leading AI giants are predominantly American, Asia plays a pivotal role in the value chain. Taiwan produces nearly 90%2 of the most advanced semiconductors, which are essential to data centres and connected devices. Companies such as TSMC, a strategic partner of Nvidia, Google and Microsoft, and Elite Materials, occupy strong upstream positions in a segment characterised by substantial barriers to entry.

China, for its part, is emerging as a challenger to the US dominance. It benefits from major strengths: abundant energy, highly skilled engineering workforce and a flexible regulatory framework. DeepSeek, for example, has demonstrated the country’s progress in large language models (LLMs). Nevertheless, China continues to lag in semiconductor technology. Huawei, its main AI player, is still largely dependent on foreign suppliers.

Convinced that AI represents a structural transformation and not a temporary bubble, we remain selective focusing on companies capable of generating sustainable value across the entire technology ecosystem. In an environment where supply constraints can create opportunities and where AI serves as a catalyst for productivity rather than disruption, Carmignac Portfolio Tech Solutions aims to capture this long-term growth by relying on players that are innovative, profitable and strategically positioned.

1Source: Carmignac, 31/12/2025. Portfolio allocation is subject to change without notice.
2Source: US International Trade Commission, November 2023.

Carmignac Portfolio Tech Solutions

A Fund unleashing the potential of tech companies across the world
Discover the fund page

Carmignac Portfolio Tech Solutions F GBP Acc

ISIN: LU3186888858
Recommended minimum investment horizon
5 years
Risk indicator*
6/7
SFDR - Fund Classification**
Article 9

*Risk Scale from the KIID (Key Investor Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time. **Sustainable Finance Disclosure Regulation (SFDR) 2019/2088. The SFDR classification of the Funds may change over time.

Main risks of the fund

Equity: The Fund may be affected by stock price variations, the scale of which is dependent on external factors, stock trading volumes or market capitalization.
Currency: Currency risk is linked to exposure to a currency other than the Fund’s valuation currency, either through direct investment or the use of forward financial instruments.
Emerging Markets: Operating conditions and supervision in "emerging" markets may deviate from the standards prevailing on the large international exchanges and have an impact on prices of listed instruments in which the Fund may invest.
Discretionary Management: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.
The Fund presents a risk of loss of capital. Please refer to the Fund’s prospectus to view the exhaustive list of risks.

Fees

ISIN: LU3186888858
Maximum subscription fees paid to distributors
-
Redemption Fees
-
Conversion Fee
-
Ongoing Charges
1.15%
Management Fees
1.00% MAX
Performance Fees
20.00% of the outperformance to the reference indicator over the year. Performance fee is not charged until previous underperformance is offset

Footnote

Performance

ISIN: LU3186888858
Carmignac Portfolio Tech Solutions+5.4
Reference Indicator+1.5
Carmignac Portfolio Tech Solutions--+25.1%
Reference Indicator--+6.4%

Source: Carmignac at 31 Dec 2025.
Date of 1st NAV : 07/10/2025.
Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). The Fund presents a risk of loss of capital.
The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.

Reference Indicator: MSCI AC World Information Technology 10/40 Capped NR index

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Marketing communication. Please refer to the KID/KIID/prospectus of the Fund before making any final investment decisions.
The decision to invest in the promoted fund should take into account all its characteristics or objectives as described in its prospectus. This material may not be reproduced, in whole or in part, without prior authorisation from the Management Company. This material does not constitute a subscription offer, nor does it constitute investment advice. The information contained in this material may be partial information and may be modified without prior notice. They are expressed as of the date of writing and are derived from proprietary and non-proprietary sources deemed by Carmignac to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. The portfolio of the fund is subject to change without notice. Access to the Funds may be subject to restrictions regarding certain persons or countries. Taxation depends on the situation of the individual. The Funds are not registered for retail distribution in Asia, in Japan, in North America, nor are they registered in South America. Carmignac Funds are registered in Singapore as restricted foreign scheme (for professional clients only). The Funds have not been registered under the US Securities Act of 1933. The Funds may not be offered or sold, directly or indirectly, for the benefit or on behalf of a «U.S. person», according to the definition of the US Regulation S and FATCA. The Management Company can cease promotion in your country anytime. The risks, fees and ongoing charges are described in the KID, KIID. The KID, KIID must be made available to the subscriber prior to subscription. The Funds’ prospectus, KIDs, KIIDs, NAV and annual reports are available at www.carmignac.com, or upon request to the Management Company. Investors have access to a summary of their rights in English at section 5 of "regulatory information page" on the following link: https://www.carmignac.com/en/regulatory-information. Carmignac Portfolio Tech Solutions refers to the sub-funds of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged. Reference to certain securities and financial instruments is for illustrative purposes to highlight stocks that are or have been included in the portfolios of funds in the Carmignac range. This is not intended to promote direct investment in those instruments, nor does it constitute investment advice. The Management Company is not subject to prohibition on trading in these instruments prior to issuing any communication. The portfolios of Carmignac funds may change without previous notice.

  • In Switzerland: the prospectus, KIDs, KIIDs and annual report are available at www.carmignac.ch, or through our representative in Switzerland, CACEIS (Switzerland), S.A., Route de Signy 35, CH-1260 Nyon. The paying agent is CACEIS Bank, Montrouge, succursale de Nyon/Suisse, Route de Signy 35, 1260 Nyon.

  • In UK: This document was prepared by Carmignac Gestion, Carmignac UK Ltd and/or Carmignac Gestion Luxembourg and is being distributed in the UK by Carmignac Gestion Luxembourg.

CARMIGNAC GESTION 24, place Vendôme - F-75001 Paris - Tel: (+33) 01 42 86 53 35 Investment management company approved by the AMF Public limited company with share capital of € 13,500,000 - RCS Paris B 349 501 676.

CARMIGNAC GESTION Luxembourg - City Link - 7, rue de la Chapelle - L-1325 Luxembourg - Tel: (+352) 46 70 60 1 Subsidiary of Carmignac Gestion - Investment fund management company approved by the CSSF - Public limited company with share capital of € 23,000,000 – RCS Luxembourg B 67 549.