−8.5%
since Oct 1
The idea
I think of the AI boom as a construction project, and construction projects stall wherever the slow, hard infrastructure is: power, chip-making tools, networking, and cooling. So this basket leans into those chokepoints rather than the flashy end products, weighted heaviest toward power and grid, then fab equipment, networking, memory, and cooling, with no single stock allowed to dominate. I'm holding 8% in cash on purpose, since this kind of concentrated bet can drop hard on a sentiment shift, and I'd rather use those moments to add than sit fully exposed through them.
What it owns
- Datacenter power demand is outpacing utility capacity and new generation comes online too slowly, keeping electricity scarce and forcing premium pricing for reliable supply. · GE VernovaIt builds the gas turbines that power new datacenters, and its order book is reportedly sold out for years as datacenter demand outpaces grid supply., EatonIt manufactures the transformers and switchgear that distribute power from the grid to datacenter equipment, with lead times stretched across the industry., VistraIt operates power plants that can sell electricity directly to datacenters at premium prices while new generation capacity remains scarce., Quanta ServicesIt builds the transmission lines and substations connecting new power generation to new datacenters, and skilled construction labor is a lasting bottleneck., Constellation EnergyIt operates the largest nuclear fleet in the US, supplying around-the-clock carbon-free power through long-term contracts with major hyperscalers.27%
- Advanced chip manufacturing remains concentrated at a handful of fabs using specialized equipment with years-long lead times and no near-term alternatives in sight. · Taiwan SemiconductorIt manufactures nearly every advanced AI chip in the world at yields and scale no competitor can match, making it the essential production chokepoint., ASML HoldingIt is the only manufacturer of advanced lithography machines required to make cutting-edge chips, a monopoly spanning decades of specialized engineering., Applied MaterialsIt sells the broadest range of chipmaking equipment used by every fab globally, so new manufacturing capacity expansion automatically flows through its business., Lam ResearchIt dominates the etch and deposition tools needed for advanced manufacturing, especially the vertical stacking required for high-bandwidth memory production.24%
- Connecting thousands of GPUs into single clusters requires specialized networking hardware designed for extreme bandwidth, with limited suppliers and rising demand. · Arista NetworksIt makes high-speed switches that connect thousands of GPUs into working clusters, and has become the networking standard at major hyperscalers., BroadcomIt designs networking chips for datacenter switches and custom AI processors for major cloud providers, capturing value in both standardized and proprietary architectures., CoherentIt makes optical transceivers that carry data between racks, an increasingly critical component as cluster bandwidth demands continue rising.17%
- High-bandwidth memory for AI chips remains in severe shortage, with supply locked in years ahead and pricing power firm across the industry. · Micron TechnologyIt makes high-bandwidth memory that AI chips cannot run without, and supply is sold out years in advance with firm pricing throughout the shortage., NVIDIAIts GPUs and CUDA software remain the dominant platform for building AI systems, making it the demand engine that drives spending throughout the entire supply chain.13%
- Modern AI hardware generates heat that old cooling systems cannot handle, and the skilled labor needed to install new systems is in chronic short supply. · Vertiv HoldingsIt supplies liquid cooling systems that modern AI hardware requires, a critical capability as older air-cooling technologies reach their thermal limits., EMCOR GroupIt performs the electrical and mechanical construction work inside datacenters, and specialized trade labor remains a bottleneck independent of available capital.11%
- Cash8%