AI Challengers and Sovereign Europe
Walt Magiera@wmagiera
The idea
I believe AI is about to crack open healthcare's old guard, Europe is rebuilding its own defense and tech base, and small businesses are using AI to compete with slower giants. To express it, I hold healthcare challengers and their AI suppliers alongside US-listed European industrial and chip names plus a defense fund, and the platforms that sell AI tools to small businesses so I win regardless of which one breaks out. I keep 10% in cash to add on dips, avoid single-name concentration, and plan to hold for a year or two while this plays out.
What will be bought
- The platforms small companies use to sell, bill and market get paid as AI helps those companies take on bigger rivals. · ShopifyIt gives small sellers the store, payments and AI tools that let them compete with big retailers on the same platform., IntuitIts QuickBooks and AI assistants do bookkeeping and taxes for small businesses that couldn't afford a finance team., HubSpotIt sells AI sales and marketing software built for small and mid-sized companies, giving them tools big rivals pay much more for., ToastIt runs ordering, payments and staffing for independent restaurants, letting small spots operate with the efficiency of larger chains., GoDaddyIt lets tiny businesses build a website and online presence with AI in minutes, making the internet accessible to solo entrepreneurs.27%
- European governments are paying to build defense, chips and technology at home, and these companies get those orders. · Select STOXX Europe Aerospace & Defense ETFThis fund owns a spread of European defense and aerospace companies, the clearest way to own Europe arming itself with its own suppliers., ASML HoldingIt makes the only machines that can print the most advanced chips, so any push to build chips inside Europe or elsewhere runs through it., SAP SEIt is Europe's biggest software company and a natural pick when European governments and businesses want cloud services that stay under European control., STMicroelectronicsIt makes chips in Europe for cars, factories and power systems, the kind of supply chain expected to come home under sovereignty efforts., NokiaIt is one of the few trusted Western makers of telecom network gear, which matters more as governments push Chinese suppliers out of their networks.24%
- Newcomers selling care, insurance and diagnostics directly are taking customers from the slow-moving giants. · Hims & Hers HealthIt sells care straight to patients online, skipping the insurer and clinic gatekeepers that usually control access to treatment., Oscar HealthIt is a tech-first insurer chipping away at the big health insurers that dominate the market by operating at smaller scale without losing money., Hinge HealthIt replaces in-person physical therapy with app-guided care that costs employers less while taking business from traditional clinics., Tempus AIIt uses AI on genetic and clinical data to help doctors and drug companies pick treatments, applying machine learning to a broken part of healthcare.23%
- Companies selling AI software to doctors, drug makers and billing teams get paid as the whole system modernizes. · DoximityIt operates the network most US doctors already use and sells AI tools that cut their paperwork and administrative burden., Veeva SystemsIt runs the software drug companies use for clinical trials and sales, and it is adding AI to speed up how medicines get made., Waystar HoldingIt uses AI to handle medical billing and insurance claims, automating one of the most wasteful parts of healthcare.16%
- Cash10%