Do not chase high-popular AI stocks! Asset management company Clough Capital: Investors should focus on quality stocks and increase cash reserves.

Vince Lorusso, CEO of Clough Capital, an asset management firm in the United States, is adopting a more cautious strategy in the stock market. While waiting for some overinflated popular stocks to present more ideal buying opportunities, he is shifting the investment portfolio towards high-quality stocks and increasing cash reserves. In an interview, Lorusso mentioned that the large-scale capital expenditure cycle around artificial intelligence (AI) infrastructure will create an investment opportunity worth hundreds of billions, even trillions, of dollars and will continue over the next several years. Despite his optimism on the long-term investment theme of AI infrastructure development, given the recent significant rise in related stocks, he believes it is necessary to make tactical adjustments at the moment. The portfolio manager noted that Clough Capital has lowered its overall net exposure and is adopting a more selective investment strategy in the current market environment. In the trend of data center construction, Lorusso believes that optical communication networks will be one of the main beneficiaries. He specifically mentioned companies like Lumentum, Applied Optoelectronics, and Corning Inc as important participants in this field. Lorusso said, "I think in terms of company quality, sustainability of business models, business lifecycle, customer diversification, and cash flow generation capability, Corning Inc is probably at the top of this industry chain." In addition to optical communication networks, Clough Capital also holds stocks of copper-related companies. Lorusso pointed out that copper is not only a key material for electrical grid construction but also an important component of data center infrastructure due to its excellent conductivity and wide applications, giving it strong investment resilience. He added, "There is enough capital in the market to support these investment opportunities." Despite recent tactical reductions in some positions, Lorusso emphasized that their portfolio still holds stocks of several high-quality semiconductor companies, including ASML Holding NV ADR, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, and NVIDIA Corporation. He said, "From a tactical perspective, we have temporarily avoided some overinflated popular stocks, waiting for more attractive buying prices." He described their current investment strategy as "moderately moving towards high-quality assets" while continuing to maintain exposure to the two major long-term investment themes of artificial intelligence and data centers.