Jeremy Raper: Cycles, AI, and Activism

AI’s impact on investment strategy and the cyclical nature of semiconductor markets remain central to the discussion. Memory manufacturers continue to exhibit cyclical volatility despite recent AI-driven earnings peaks, rendering current high valuations precarious. AI tools significantly reduce the friction of activist campaigns and legal document analysis, enabling solo investors to operate with the efficiency of larger teams. The Australian small-cap market offers unique opportunities for value extraction through governance reform, particularly in cash-rich companies where management is misaligned with shareholder interests. While AI accelerates decision-making in high-stakes, time-sensitive situations, maintaining a baseline of domain expertise is critical to avoid errors in data interpretation. Ultimately, the conversation underscores the shift toward using technology as a lever to identify and execute on idiosyncratic opportunities in overlooked, illiquid markets.