Third Point founder Daniel Loeb says AI and geopolitics now matter more to investors than traditional indicators such as inflation, interest rates and unemployment.

Speaking on the Invest Like The Best podcast, Loeb said AI’s impact on infrastructure spending, society and the economy now matters more to investors than traditional macro indicators.

Loeb Says Investors Should Look Beyond Traditional Economic Data

The hedge fund manager said geopolitics is driving oil markets, while AI is reshaping infrastructure spending, economic activity and the broader economy.

‘You Have To Be A Tech Person Today,’ Says Loeb

“You have to be a tech person today,” Loeb said, noting that technology has become a growing and compounding force that affects nearly every part of the economy.

Loeb pointed to the AI stack—from energy and infrastructure to chips, models and applications—as a useful framework for understanding where opportunities are emerging across markets.

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‘Things Are Only Going To Accelerate From Here‘

Loeb asked investors to “hold on to your seats” because technological innovation is only accelerating.

To understand where AI is headed, Loeb said he keeps a close eye on Nvidia Corp. (NASDAQ:NVDA), Anthropic and Elon Musk‘s companies, which he described as some of the most consequential forces shaping the technology industry today.

AI Investment Boom Shows No Signs Of Slowing

Loeb’s comments come as investment in AI companies remains robust. Anthropic became the world’s most valuable AI startup on Thursday after its latest funding round valued the company at $965 billion, surpassing OpenAI.

The AI boom has propelled shares of companies such as NVIDIA, which has become one of the biggest beneficiaries of rising demand for AI chips and infrastructure. During Dell Technologies Inc.‘s (NASDAQ:DELL) latest earnings call, management highlighted continued strength in AI server demand, while executives pointed to a growing backlog of AI-related orders.

The trend has also driven increased spending by hyperscalers, including Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) as they expand data center capacity to support AI workloads.

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