Nvidia shoots and pulls Wall Street; Brazil is left out of the conversation

In April, the American market had one of the fastest monthly recoveries in its history. After a drop of about 10% in the Nasdaq, fueled by doubts about the profitability of investments in artificial intelligence, the index jumped more than 15%, while the S&P 500 advanced more than 10%. The most recent push came from Nvidia (NVDC34), which once again published solid results and reinforced confidence in the sector.

The movement was closely monitored by Brazilian managers who were in New York for the Brazil Week. The agenda included meetings with funds focused on energy and technology, mergers and acquisitions markets and managers with relative value strategies. The general impression was of structural optimism with technology, especially in artificial intelligence and energy infrastructure, tempered by tactical caution given the recent significant increases.

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The balance sheet was presented on the program County Postmenled by Lucas Collazo and Davi Fontenele, with the participation of Felipe Relvas, CIO of MMZR Family Office. Relvas was in New York with a schedule similar to that of the presenters, visiting American managers and specialized funds.

“The optimism is enormous,” said Relvas when commenting on the mood of American managers towards the technology sector. He highlighted the case of Electron Capital Partnersa manager focused on energy that increased its exposure to the American market from 33% to 70% of its portfolio, betting that investments in energy infrastructure will be essential to sustain the expansion of artificial intelligence.

One of the surprises reported by participants was the lack of widespread concern about the impact of artificial intelligence on software companies. Despite the growing debate about technological disruption, the managers found in New York seemed relatively calm.

“Either they fooled me really well, or they really aren’t worried,” Relvas said. The assessment is that essential software — such as hospital systems — has a very low probability of immediate replacement, which reduces short-term risk.

Collazo added that there is real concern, although still at an early stage, with the implementation of artificial intelligence by companies. “More junior lawyers are already finding it difficult to get jobs,” he stated, pointing out that the productivity gains generated by technology are beginning to reduce the demand for labor in some areas.

In the field of investments, American managers identify semiconductors and technology companies concentrated in the United States and Asia — with emphasis on Taiwan and South Korea — as the main “horses” of this race. TSMC (TSMC34) was cited as a central company in this ecosystem. The emerging markets index rose, but the movement was basically driven by these two Asian economies, and not by the emerging markets as a whole.

In this context, Brazil was left out of the conversation. “I came back a little upset from the trip,” admitted Collazo. “I was expecting people to be talking more about us. It’s China, Taiwan, India, even Indonesia, before talking about Brazil”, he said.