Feb 16, 2026: Why Infrastructure is the Real Winner in the Age of AI with John Rotonti

Feb 16, 2026: Why Infrastructure is the Real Winner in the Age of AI Warren Buffett is widely credited with characterizing competitive advantages as moats that companies will aggressively build and will vigorously defend to protect themselves from attacks by others.The software industry has been a popular sector for investors in recent years due to its outsized growth rates and its ability to quickly iterate.Yet the barriers to entry are low here, and it's been difficult for software companies to build sustainable moats.That's perhaps one of the key reasons for the recent "SaaS-pocalypse", where many software stocks have sold off due to the emerging threat of AI and technological disruption.So where do we go from here? Are software stocks with lower prices now a compelling buying opportunity? Or are these falling knives with even more downside risk ahead?On Monday's livestream show, Bastion Fiduciary portfolio manager John Rotonti and I describe the status quo of the software industry. But we also discuss how infrastructure providers are emerging as the real winners in the age of AI.Power, cooling, networking, and other supporting functions are supply-constrained and are doing their best to meet the $3 trillion of AI infrastructure spending that will take place within the next five years. We discuss the turnaround taking place in manufacturing and why Amphenol, TE Connectivity, and Trane Technologies could be lucrative investment opportunities.Timestamps:00:00 – Welcome & Mardi Gras check-in02:30 – The SaaS reckoning: low moats, high competition08:00 – Valuations then vs. now (52x PE → 20x)12:00 – The stock-based compensation problem15:00 – Is it finally time to invest in SaaS?20:00 – Constellation Software: the acquisition machine28:00 – Nvidia & the AI infrastructure buildout38:00 – Hardware + software integration as a moat40:00 – Why Alphabet is the widest-moat AI company43:00 – Power, liquid cooling & the data center arms race47:00 – Labor shortages & re-industrialization50:00 – Audience Q&ALearn more about long-term investing at 7investing.com — get your first 7 days free at 7investing.com/

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Feb 16, 2026: Why Infrastructure is the Real Winner in the Age of AI with John Rotonti is an episode from The 7investing Podcast by 7investing.

This episode is 00:52:59 long.

This episode was published on Feb 28, 2026.

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