Hello everyone,

Thank you for subscribing.

This newsletter is where I’ll share high-conviction investing ideas, market trends, and sectors I believe are entering major long-term growth cycles.

Today, I want to talk about the AI infrastructure boom.

The world’s largest companies are spending billions on AI.

Microsoft, Meta, Amazon, Google, OpenAI, Oracle, and many others are aggressively increasing capital expenditures to build the next generation of AI infrastructure.

Most investors focus on the software side of AI.

But I believe one of the biggest opportunities may actually be underneath it all:

The physical infrastructure powering artificial intelligence.

AI requires enormous amounts of:

• Data centers
• Electricity
• Cooling systems
• Networking hardware
• High-bandwidth memory
• Advanced semiconductors
• Optical communication
• Cloud infrastructure

This is not a temporary trend.

The amount of compute required for AI models is exploding, and companies are racing to build the backbone needed to support it.

A lot of people compare this to a bubble.

Could parts of the market become overheated? Absolutely.

But one major difference today is that the biggest companies driving AI spending are also producing massive earnings and cash flow growth.

This isn’t just speculation.

The companies funding the AI race are some of the most profitable businesses in the world, and they continue increasing investment because demand keeps accelerating.

That’s why I’m very bullish on the infrastructure side of AI.

Not just the applications.

The companies building the power behind the revolution.

Building large-scale AI-ready data centers with major energy capacity while also benefiting from Bitcoin infrastructure exposure.

Developing optical technology designed to improve speed and efficiency in AI data transfer and communication.

An emerging European AI cloud infrastructure company focused on GPU compute and AI services.

Provides critical power and cooling systems required to operate modern AI data centers.

Expanding energy-intensive infrastructure that could become increasingly valuable as AI compute demand rises.

AI workloads are driving massive global demand for high-bandwidth memory and advanced storage solutions.

One of the strongest challengers to NVIDIA in AI accelerators and enterprise compute infrastructure.

Manufactures many of the world’s most advanced AI chips and sits at the center of the semiconductor supply chain.

Focused on connectivity and data movement solutions that help AI servers operate efficiently at scale.

Rapidly growing AI networking and custom chip revenue as hyperscalers continue expanding infrastructure spending.

I believe we are still in the early stages of the AI infrastructure buildout.

The companies supplying compute, power, networking, memory, and data center capacity may become some of the biggest winners of the next decade.

In future issues, I’ll break down individual companies, valuations, risks, and the trends I’m watching most closely one by one.

See you in the next issue.

Rei

Not financial advise. Personal thoughts on the market