Vihari Ross: A Generational Cycle is Starting
According to Vihari Ross, a generational cycle is beginning, but investors remain on the sidelines.
Ross stated that the energy transition would surpass AI as the decade's largest capital cycle. She believes that the numbers still support her view, even after a year.
The bigger, longer, and more foundational cycle would be the energy transition, driven by technology, national security, geopolitical competition, and massive fiscal incentives.
A decade-long capex boom is expected, and Ross thinks that the market still hasn't realized the scale of the opportunity. She identifies areas where investment is accelerating and where investors may be complacent.
Ross believes that decarbonization, not AI, will ultimately be the defining capital cycle of the decade.
Author's summary: Energy transition to surpass AI as decade's largest capital cycle.