−11.5%
since Oct 10
The idea
I think the AI buildout is really a construction project, and the money goes to whoever controls the parts that can't be scaled up fast, like grid capacity, fab tooling, and cooling. This basket spreads across five of those choke points, tilted hardest toward power and grid since that's the slowest constraint to fix, with no single holding allowed to dominate. I keep a small cash buffer on purpose, since this sector tends to sell off hard when sentiment turns, and I'd rather have room to add on those drops than sit fully invested through them.
What it owns
- Datacenters consume vast amounts of electricity, and the generation, transmission, and distribution infrastructure to supply that power faces years-long backlogs and capacity constraints. · GE VernovaIt makes the gas turbines and grid equipment that new datacenter power demand requires, with turbine orders sold out years in advance., EatonIt sells the switchgear, transformers, and power distribution equipment every new datacenter needs inside the building, with lead times stretching to years., VistraIt owns gas and nuclear generation in regions where datacenter power demand is tightest, and new capacity cannot be built quickly., Quanta ServicesIt builds the transmission lines and grid connections that move power from plants to datacenters, and these projects require crews and permits that cannot be rushed., Constellation EnergyIt owns the largest US nuclear fleet, providing the clean and always-on power that hyperscalers are locking up through long-term agreements.27%
- Building leading-edge semiconductor capacity requires years and tens of billions of dollars, creating durable advantages for makers of both fabrication equipment and the facilities themselves. · Taiwan SemiconductorIt manufactures nearly every advanced AI chip, and building competing leading-edge capacity requires half a decade and tens of billions of dollars., ASML HoldingIt is the only company making the EUV lithography machines required to print advanced chips, making it the purest bottleneck in semiconductor manufacturing., Applied MaterialsIt sells deposition and etch tools that every new fab needs regardless of what chips it makes, winning on total fab construction rather than any single customer., Lam ResearchIt dominates etch equipment that becomes more critical as memory stacks in three dimensions, which is the direction AI memory is heading.24%
- Training clusters require specialized networking silicon and optical components to wire together thousands of processors, and supply of these components remains tight. · BroadcomIt provides both the networking silicon inside AI datacenters and custom chips designed for hyperscalers, sitting at two critical points in the buildout., Arista NetworksIt makes the switches that wire together thousands of GPUs in training clusters, and is the standard choice at major cloud buyers for this networking., CoherentIt makes the transceivers and lasers that carry data between GPUs over optical links, and optical component demand from AI datacenters is outrunning supply.17%
- AI accelerators depend on high-bandwidth memory to reach their peak speeds, and supply of this memory remains tightly constrained among qualified producers. · Micron TechnologyIt makes high-bandwidth memory that AI accelerators need to reach peak speed, and is one of just three qualified suppliers to chip designers like NVIDIA., NVIDIAIt makes the chips and provides the software platform that serves as the default way to build AI systems, and remains the dominant choice for AI training.13%
- Modern AI racks generate heat beyond what air cooling can handle, requiring specialized liquid cooling systems and construction services that are in short supply. · Vertiv HoldingsIt sells the liquid cooling and power equipment that datacenters need to handle the heat from high-density AI racks, which air cooling cannot manage., EMCOR GroupIt physically wires and plumbs datacenters as one of the largest contractors doing such work, while skilled electrical labor remains scarce.11%
- Cash8%