Why the Markets Are Pricing AI Wrong | Gavin Baker

ℹ️ EPISODE INFO

Released

August 4, 2026

Duration

1h 18m

Channel

Invest Like the Best

Watch on YouTube

▶ Open ↗

📝 EPISODE DESCRIPTION

In this episode of Invest Like the Best, Patrick O'Shaughnessy sits down with Gavin Baker to dissect the intense AI and semiconductor market sell-off of July 2026. Describing the period as "2022 packed into a single month," Gavin explains why public market panic contrasts sharply with the booming fundamentals seen on the ground in Silicon Valley. They dive into the accelerating operating cash flows of hyperscalers, the soaring spot prices for GPUs, and why open-source AI models are actually driving massive infrastructure demand. Gavin also unpacks the game theory behind Long-Term Agreements (LTAs) in the memory market, NVIDIA's strategic dominance, SpaceX's massive data center ambitions, and the looming regulatory risks for AI compute. Timestamps: 0:00 Intro 1:17 AI Selloff vs. Fundamentals 10:20 Financing the AI Buildout 18:18 GPU Prices Keep Rising 24:23 Claude Moves Markets 29:01 What Could Break the Thesis 36:59 The Memory Supply War 42:08 Nvidia’s New Playbook 50:14 China and Open Source 61:51 Data Centers and Regulation 71:11 SpaceX and Orbital Compute #Investing #AI #Semiconductors #Nvidia #StockMarket #Technology #DataCenters #OpenSource #Finance #VentureCapital #nvidia #stocks #sell #stockmarket Presented by Ramp: https://ramp.com/invest Sponsored by Vanta, WorkOS, Rogo, and Ridgeline: https://www.vanta.com/invest https://workos.com/ https://rogo.ai/invest https://www.ridgelineapps.com/ ****** Patrick O'Shaughnessy is the CEO of Positive Sum. All opinions expressed by Patrick and podcast guests are solely their own and do not reflect the opinion of Positive Sum. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Clients of Positive Sum may maintain positions in the securities discussed in this podcast. To learn more, visit psum.vc

🎤 SPEAKERS

• Gavin Baker

  guest

  Investor and Managing Partner at Atreides Management, focused on technology and public markets.

• Patrick O'Shaughnessy

  host

  Host of Invest Like The Best and founder/CEO of O'Shaughnessy Ventures.

🧾 EPISODE SUMMARY

In this episode of Invest Like the Best, featuring Gavin Baker and Patrick O'Shaughnessy, Why the Markets Are Pricing AI Wrong | Gavin Baker explores AI stocks sold off, but Baker sees accelerating compute fundamentals Gavin Baker argues that despite a sharp AI-related stock selloff, he has not found meaningful negative quantitative demand signals and instead sees multiple indicators accelerating.

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