−9.2%
since Sep 30
The idea
I believe the real winners in the AI buildout aren't the neocloud renters, since SpaceX, OpenAI and the big labs are increasingly building their own data centers. So this take skips that bet entirely and owns the picks and shovels instead: power generation and grid equipment as the largest pieces, datacenter plumbing like cooling and interconnects as a close second, and memory as the layer that gets paid regardless of who runs the compute. A small cash buffer sits on the side, and no single name is sized to make or break it.
What it owns
- Cooling, connectors and interconnects are purchased for every build, independent of facility ownership. · Vertiv HoldingsIt sells cooling and power distribution gear inside every facility, regardless of whether the buyer is a neocloud, lab, or independent builder., Arista NetworksIts switches wire GPUs together inside AI data centers, networking infrastructure every builder needs., Astera LabsIt makes connectivity chips that link GPUs to everything else in the data center., AmphenolIts connectors are in nearly every server and rack, a profitable way to own the plumbing without picking a facility owner., nVent ElectricIt sells enclosures and liquid cooling hardware that hotter AI racks force every builder to purchase., Credo TechnologyIt makes high-speed cables that move data between racks in AI data centers., CoherentIt makes optical transceivers that carry data between and inside data centers, demand that grows with every new facility.32%
- Every AI data center, whether rented or self-built, requires electricity that remains in short supply. · GE VernovaIts gas turbine backlog shows where data center builders lock in new generation capacity., Constellation EnergyIt owns the largest US nuclear fleet that data center builders seek to lock up through long-term power deals., VistraIt sells power directly to data center builders who are cutting out the neocloud middleman., Talen EnergyIt plugs data centers directly into its nuclear plants, the purest version of builders sourcing their own power., Bloom EnergyIts fuel cells let builders deploy power on site immediately, bridging the gap while grid connections take years., OkloIt builds small reactors designed to sit next to data centers, requiring regulatory and construction progress toward first power.29%
- Transformers, switchgear and nuclear fuel are scarce infrastructure between the power plant and the server rack. · EatonIt sells the switchgear and transformers that every buyer runs through the grid bottleneck., Quanta ServicesIts crews build the transmission and substations connecting new power to new data centers, a labor bottleneck that spending alone cannot quickly widen., CamecoIt sells the uranium fuel that every reactor needs regardless of who signs the power deal.17%
- Memory and challenger chips get paid on every GPU deployed, regardless of who operates the facility. · Micron TechnologyIt gets paid on every GPU shipped through high-bandwidth memory, the layer this take isolates from facility ownership., SanDiskAI training and inference require huge amounts of flash storage, a demand that does not depend on facility ownership., Cerebras SystemsIt makes custom chips for builders who want alternatives to standardized GPU platforms.14%
- Cash8%