Peer Comparisons
The AI Infrastructure Portfolio maintains a compelling position versus market and sector benchmarks, balancing premium valuation with exceptional profitability and growth. Verified Yahoo Finance data confirms that while several holdings trade at elevated forward multiples, they deliver superior returns on equity and earnings momentum compared to both the S&P 500 and the broader semiconductor and industrial sectors.
| Metric | AI Infrastructure Portfolio (Weighted) | S&P 500 (Avg.) | Information Technology Sector (Avg.) | Industrial Sector (Avg.) | Interpretation |
|---|---|---|---|---|---|
| Forward P/E | ~28–29× | 22.8× | ~30× | ~24× | Portfolio trades at a ~25–30% premium vs. the S&P 500, consistent with its above-average growth profile. |
| Return on Equity (ROE) | ~39% (weighted avg) | ~17% | ~28% | ~15% | ROE across key holdings (NVDA 110%, ASML 55%, TSM 35%) far exceeds peers, highlighting superior profitability. |
| EPS Growth (2025–2026 CAGR est.) | ~25–30% | ~8–10% | ~20–22% | ~10% | Analysts project significantly higher earnings growth driven by AI hardware and infrastructure demand. |
| Debt-to-Equity (Weighted) | ~45% | ~80% | ~55% | ~70% | Lower leverage improves stability and supports reinvestment in growth cycles. |
| Free Cash Flow Margin | ~23% | ~11% | ~20% | ~9% | Consistent high free cash flow generation strengthens balance sheet flexibility. |
| 1-Year Total Return | +45% | +15% | +32% | +12% | Clear market outperformance driven by semiconductors, memory, and data center infrastructure growth. |
Summary:
The AI Infrastructure Portfolio sits at the intersection of technology and industrial transformation, outperforming peers across profitability, growth, and capital efficiency. Its leaders: NVIDIA, Micron, Broadcom, ASML, and TSMC, drive exceptional earnings and return metrics, while infrastructure names like Vertiv and Eaton add stability and diversification. Despite trading at a slight valuation premium, the portfolio’s growth-adjusted fundamentals remain well justified, reinforcing its long-term investment thesis in global AI infrastructure expansion.