CEO says his fund is investing in Netflix, sees ‘risky business’ in chips

July 1, 2026 - 23:32

Infrastructure Capital Management CEO Jay Hatfield has revealed that his fund is actively investing in Netflix, citing the streaming giant's resilience and growth potential even after facing significant market headwinds. Appearing on a recent financial program, Hatfield described Netflix as having been "double hammered" by investor sentiment, yet still managing to deliver solid performance.

According to Hatfield, Netflix has successfully navigated challenges like market saturation and shifting consumer habits. He pointed to the company's recent moves, including its crackdown on password sharing and the introduction of ad-supported tiers, as key drivers of renewed subscriber growth and revenue stability. These strategies, he argued, have positioned Netflix to outperform in a competitive landscape where many other media stocks are struggling.

In contrast, Hatfield expressed caution regarding the semiconductor sector. He labeled chip stocks as a "risky business" at this stage, warning that the industry faces potential volatility from geopolitical tensions and cyclical demand shifts. While acknowledging the long-term importance of chips in technology, he suggested that current valuations may not fully account for near-term risks.

Hatfield's comments highlight a growing divergence in market strategy, with some fund managers favoring established consumer tech names over the high-growth but volatile semiconductor space. His fund's focus on Netflix reflects a bet on steady cash flow and proven business models, rather than speculative bets on hardware manufacturing.