This year didn’t start well.

I wouldn’t go as far as saying it has been a difficult year, but it certainly hasn’t been smooth. The market opened with volatility, and much of it was driven by something that I think is still underappreciated—AI disruption happening faster than expected.

We are starting to see tools like Grok and other AI agents changing how work gets done. Tasks that once required specialised software can now be done faster, cheaper, and sometimes with less effort. If you think about a company like Adobe, for example, not everything can be replaced, but parts of what users rely on today are already being challenged. Editing, generating, adjusting—these are becoming increasingly accessible through AI tools.

This doesn’t mean these companies disappear overnight, but it introduces uncertainty. And markets don’t like uncertainty. That’s why we’ve seen many software companies being sold down—not necessarily because their fundamentals have deteriorated immediately, but because investors are starting to question how relevant these businesses will be over the next five years.

Macro Uncertainty Returns

Just as things began to stabilise, macro conditions added another layer of complexity. The U.S. conflict involving Iran, along with threats to block the Strait of Hormuz, created renewed concerns around supply chains and oil prices. When oil prices rise, inflation becomes a concern again, and that puts the Federal Reserve in a difficult position.

Higher inflation typically means interest rates stay elevated for longer, which is generally not favourable for growth stocks.

It’s easy to look at all of this and come to a pessimistic conclusion. But I think there is a different way to see it. When markets react strongly to uncertainty, they often create pockets of opportunity. Companies get sold down not purely because of fundamentals, but because of fear. And that’s where I start paying closer attention.

Staying Invested, But Selective

That said, I didn’t go all in.

I did not sell my existing positions, but I added selectively. Over the past period, I increased my exposure to Coinbase, UiPath, and NVIDIA, and also added some crypto. At one point, I did consider leaning in more aggressively, but I held back. I preferred to stay disciplined rather than overextend, especially given that I have upcoming cash commitments for renovation.

For Tesla, I’ve paused for now. I currently hold more than 1,002 shares, and at this stage, I’m more selective with additional entries. I may consider adding again if the price returns to the mid-$300 range, depending on how other opportunities evolve.

Terrafab and Musk’s Playbook

Recently, Elon Musk introduced something called Terrafab, which involves Tesla, xAI, and SpaceX working together to build large-scale AI chip manufacturing capability. At its core, this initiative is not just about building chips, but about reducing reliance on the existing supply chain for one of the most critical inputs in the AI era—compute.

Today, the production of advanced AI chips is highly concentrated, with companies like TSMC playing a central role. Even for well-capitalised companies, access to cutting-edge chips is not simply a matter of demand. It is constrained by how much capacity these manufacturers can allocate, and there are practical limits to how quickly they can scale. From what Musk has hinted, even if you push these suppliers, there is only so much they can deliver within a given timeframe.

Instead of operating within those constraints, Musk’s approach is to remove them altogether. Terrafab is an attempt to vertically integrate the entire compute stack—from designing chips to manufacturing them, and ultimately scaling compute capacity to levels approaching one gigawatt. The intention is not just efficiency, but control. Control over supply, control over timelines, and control over how quickly innovation can happen across Tesla’s autonomy efforts, humanoid robotics, and xAI’s models.

To many investors, this move may seem extreme, but if you’ve read Elon Musk, it is actually very consistent with how Musk has always operated. Most CEOs, once they reach a certain level of wealth, tend to shift their focus towards preservation. They diversify, reduce risk, and gradually step back from large, uncertain bets. Musk tends to do the opposite. He continues to commit capital into projects that are ambitious, capital-intensive, and long-term in nature, often taking on challenges that others would avoid.

Terrafab reflects that same mindset. It is a bold attempt to solve a future constraint before it fully materialises, but it also introduces significant execution risk. This is a high capex, multi-year initiative, and success is far from guaranteed. Scaling manufacturing at this level is extremely complex, and even Tesla’s own experience with the 4680 battery cells shows that moving from concept to large-scale production can take longer than expected. Despite strong progress, Tesla still relies heavily on partners like CATL, Panasonic, and LG, which highlights how difficult true vertical integration can be in practice.

Because of this, while I admire the ambition behind Terrafab, I remain measured in my investment approach. The potential upside is significant if it works, but the risks are equally meaningful if execution falls short. At this stage, I prefer to see clearer signs of progress before increasing my exposure, especially when there are other companies in the market that are already executing strongly and benefiting from current AI demand.

Portfolio Update

To make things more concrete, here’s how my current portfolio looks.

Looking at this allocation, I remain heavily tilted towards equities, which is intentional. I still believe we are in the early stages of major technological shifts in AI and automation. At the same time, I maintain some exposure to crypto as a form of optional upside, while property provides a more stable base and is starting to generate cash flow.

A New Milestone: Becoming a Landlord

On the personal side, this is also an exciting period for me.

My property is ready, and I’m currently in the process of securing tenants. It will be my first time collecting rental income, and while it represents a new source of passive income, it has also been a learning experience. From defect checks to understanding agreements, there are many practical aspects that come with being a landlord that I didn’t fully appreciate before.

I’m currently reviewing a few offers and hope to secure a tenant by late April, after which rental income should start coming in.

What I’m Doing Next

For now, I’ve deployed most of my available cash into the recent opportunities, while setting aside some for renovation. I’m taking a wait-and-see approach and prefer to remain patient rather than forcing new investments in an uncertain environment.

Despite the volatility, I remain optimistic. While the global environment may seem uncertain on the surface, we are witnessing significant structural shifts driven by AI and technological advancement. And within that uncertainty, there are always opportunities for those who remain disciplined.

I’ll be heading to London and then Portugal for a short break, and I’ll continue to share updates as I observe new developments.