Video: The Next Phase of AI
What comes after today’s AI revolution? In this next installment of our Portfolio Perspectives series, Ankur Crawford discusses why agentic AI could be the next major phase of the AI revolution.
What’s a Top Theme in your Portfolio?
Dr. Ankur Crawford: The overriding thematic in the portfolio right now is really artificial intelligence, but I’ll talk about the next theme, which is, we think, going to be how artificial intelligence is going to be dictated and driven from here by agents, and agentic AI.
AI is going from a “answer this” for me to “give me the problem and I will solve it.” So, it’s a little bit like a coworker, right? Or our departments. Each of the departments have a skillset that is quite different from one another, and they do different things. So similarly you can set up agents such that they have a particular niche of knowledge and skill. And then they get to talk to one another in order to fill the gaps. So, one can imagine at some point, building a team of agents that kind of complete the loop on anything that you do.
How Far-Reaching Will AI’s Impact Be?
Dr. Ankur Crawford: Look, I think that AI is such a powerful change in our society and in our economy, it changes everything. It impacts power. It impacts the infrastructure. We think it disrupts the same companies that we viewed as disruptors.
And what that means is it’s hard to even fathom right now. But we do know that the entire supply chain that is needed to support that kind of intelligence and that kind of token growth, is significant.
What Is an Example of a Stock Impacted by the AI Supply Chain?
Dr. Ankur Crawford: Talen Energy is an independent power producer. They have nuclear assets and they have gas assets. And they effectively supply power to the grid. And given that power is a commodity, historically, we think, you know, Talen or all of the independent power producers have really struggled with the business models. However, given that we are looking for change, the big change in this market is that all of a sudden, we are short power. And in our view we will likely be short power from now into the early 2030s.
We have to build data centers. Data centers are about six percent of power demand today and we think growing at a very rapid clip,. So, at some point, we think, they’ll be mid-teens percentage of power demand and it’s inflecting the amount of electrons that we need in order to service the intelligence. And if you think about the independent power producers where we’ve owned them for quite some time, we think they may be the net beneficiary of all of this demand.
The views expressed are the views of Fred Alger Management, LLC (“FAM”) and its affiliates as of June 2026. These views are subject to change at any time and may not represent the views of all portfolio management teams. These views should not be interpreted as a guarantee of the future performance of the markets, any security or any funds managed by FAM. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.
Risk Disclosures: Past performance is not indicative of future performance. Investors whose reference currency differs from that in which the underlying assets are invested may be subject to exchange rate movements that alter the value of their investments.
Companies involved in, or exposed to, AI-related businesses may have limited product lines, markets, financial resources or personnel as they face intense competition and potentially rapid product obsolescence, and many depend significantly on retaining and growing their consumer base. These companies may be substantially exposed to the market and business risks of other industries or sectors, and may be adversely affected by negative developments impacting those companies, industries or sectors, as well as by loss or impairment of intellectual property rights or misappropriation of their technology. Companies that utilize AI could face reputational harm, competitive harm, and legal liability, and/or an adverse effect on business operations as content, analyses, or recommendations that AI applications produce may be deficient, inaccurate, biased, misleading or incomplete, may lead to errors, and may be used in negligent or criminal ways. AI technology could face increasing regulatory scrutiny in the future, which may limit the development of this technology and impede the future growth. AI companies, especially smaller companies, tend to be more volatile than companies that do not rely heavily on technology.
Important Information for US Investors: This material must be accompanied by the most recent fund fact sheet(s) if used in connection with the sale of mutual fund and ETF shares. Fred Alger & Company, LLC serves as distributor of the Alger mutual funds and ETFs.
Important Information for UK and EU Investors: This material is directed at investment professionals and qualified investors (as defined by MiFID/FCA regulations). It is for information purposes only and has been prepared and is made available for the benefit investors. This material does not constitute an offer or solicitation to any person in any jurisdiction in which it is not authorized or permitted, or to anyone who would be an unlawful recipient, and is only intended for use by original recipients and addressees. The original recipient is solely responsible for any actions in further distributing this material and should be satisfied in doing so that there is no breach of local legislation or regulation. Certain products may be subject to restrictions with regard to certain persons or in certain countries under national regulations applicable to such persons or countries.
Alger Management, Ltd. (company house number 8634056, domiciled at 85 Gresham Street, Suite 308, London EC2V 7NQ, UK) is authorised and regulated by the Financial Conduct Authority, for the distribution of regulated financial products and services. FAM, Weatherbie Capital, LLC, and/or Redwood Investments, LLC, U.S. registered investment advisors, serve as sub-portfolio manager to financial products distributed by Alger Management, Ltd. Alger Group Holdings, LLC (parent company of FAM and Alger Management, Ltd.), FAM, and Fred Alger & Company, LLC are not authorized persons for the purposes of the Financial Services and Markets Act 2000 of the United Kingdom (“FSMA”) and this material has not been approved by an authorized person for the purposes of Section 21(2)(b) of the FSMA.
Important information for Investors in Israel: Fred Alger Management, LLC is neither licensed nor insured under the Israeli Regulation of Investment Advice, of Investment Marketing, and of Portfolio Management Law, 1995 (the "Investment Advice Law"). This document is for information purposes only and should not be construed as an offering of Investment Advisory, Investment Marketing or Portfolio Management services (As defined in the Investment Advice Law). Services regulated under the Investment Advice Law are only available to investors that fall within the First Schedule of Investment Advice Law ("Qualified Clients"). It is hereby noted that with respect to Qualified Clients, Fred Alger Management, LLC is not obliged to comply with the following requirements of the Investment Advice Law: (1) ensuring the compatibility of service to the needs of client; (2) engaging in a written agreement with the client, the content of which is as described in section 13 of the Investment Advice Law; (3) providing the client with appropriate disclosure regarding all matters that are material to a proposed transaction or to the advice given; (4) a prohibition on preferring certain Securities or other Financial Assets; (5) providing disclosure about "extraordinary risks" entailed in a transaction (and obtaining the client's approval of such transactions, if applicable); (6) a prohibition on making Portfolio Management fees conditional upon profits or number of transactions; (7) maintaining records of advisory/discretionary actions. This document is directed at and intended for Qualified Clients only.
Alger pays compensation to third party marketers to sell various strategies to prospective investors.
The following positions represented the noted percentages of Alger's firm-wide assets as of March 31, 2026: Talen Energy Corp, 1.41%.
