Why Bubble Talk is Totally Wrong with Ankur Crawford

In this episode of The Compound and Friends, host Josh Brown welcomes Ankur Crawford, Executive Vice President and Portfolio Manager at Alger, to discuss her contrarian views on the current AI and semiconductor boom. Crawford argues that the widespread 'bubble talk' surrounding AI and compute is fundamentally misguided, emphasizing that the current demand for compute is driven by exponential growth in AI capabilities—especially with the rise of agentic AI—rather than speculative frenzy. She highlights the real-world, growing demand for compute, citing examples like Uber blowing its 2026 budget on AI and hyperscalers reinvesting all their cash flow into data centers. Crawford explains that unlike past bubbles such as the dot-com era, today’s investments are in a functioning technological ecosystem with real, immediate use cases and strong fundamentals. She also shares her investment philosophy, which centers on identifying companies undergoing 'lifecycle change'—those reinventing themselves after growth saturation—and her active role in private market investing, including stakes in companies like Anthropic and Palantir. The conversation dives into specific holdings like Nebius, QXO, and AppLovin, underscoring her focus on management quality and long-term structural change. Crawford remains bullish on AI’s transformative potential, even as she acknowledges the volatility and risks, and cautions against linear thinking in an exponential world.