−10.6%
since Oct 6
The idea
I believe AI compute demand keeps growing faster than the market expects over the next couple of years, but I don't think any single company captures it, so I'd rather own the whole chain and lean on the choke points. This basket spreads across wafer equipment and foundries, power and electrical gear, data center plumbing, memory, and compute champions, with a small slice in hyperscalers as proof the demand is real. It's spread across 22 positions with no single-name bets, holds some cash to add on rough days, and is built for roughly a two-year window rather than a long hold.
What it owns
- Equipment makers and foundries in the supply chain for advanced chip manufacturing. · Taiwan SemiconductorNearly every advanced AI chip gets made here, making it the narrowest choke point in the supply chain for AI accelerator production., Lam ResearchIt sells the etch and deposition equipment needed for both logic chips and high-bandwidth memory in AI accelerators., ASMLIt makes the only EUV lithography machines needed to print leading-edge chips, so wafer capacity expansion drives tool orders., Applied MaterialsIt supplies a broad range of chipmaking equipment to foundries and memory makers, a diversified bet on wafer capacity expansion., KLAIt dominates inspection and measurement tools that become more essential as advanced chips grow more complex and expensive to produce.21%
- Companies designing or manufacturing the processors at the center of AI infrastructure buildouts. · NVIDIAIt sells the accelerators at the center of nearly every AI buildout, so data center revenue growth and chip market share are the core reads on demand., BroadcomIt builds custom AI chips for hyperscalers and the networking silicon that ties accelerator clusters together., Advanced Micro DevicesIt makes credible alternative accelerators, so demand expansion fast enough for second-place market share to remain viable., TeslaIt is betting its future on AI for autonomous driving and robotics, buying enormous amounts of compute to get there.20%
- Power generation and electrical infrastructure suppliers to data centers. · GE VernovaIt sells gas turbines and grid equipment being ordered to power new data centers as electricity demand outruns supply., VistraIt owns power generation in regions where data center demand is tightening grids, supporting electricity prices and long-term contracts., Constellation EnergyIt operates the largest US nuclear fleet and is winning hyperscaler contracts for always-on clean power., EatonIt makes switchgear and power distribution equipment every new data center needs regardless of operator.16%
- Suppliers of networking, cooling, and connectivity gear inside AI data centers. · VertivIt supplies the liquid cooling and power management systems that AI-density data centers require as chip power consumption rises., Arista NetworksIt makes the network switches connecting accelerators into usable clusters, required gear across all chip choices., Astera LabsIt makes connectivity chips moving data between accelerators and memory inside AI servers, a pure play on cluster volumes., CoherentIt makes optical transceivers and lasers carrying data between racks as AI clusters scale beyond copper capacity., Credo TechnologyIt sells high-speed cables and connectivity chips linking servers inside AI clusters, riding the same hyperscaler buildout.15%
- Makers of high-bandwidth memory and storage where supply constraints support pricing. · Micron TechnologyIt makes the high-bandwidth memory packaged onto AI accelerators, where tight supply supports pricing and margins., Western DigitalIt sells storage drives for the vast datasets AI models train on and generate, where tight market supply supports pricing.8%
- Large companies with visible capital spending and revenue tied to AI adoption. · AlphabetIt builds custom TPU chips, spends heavily on data center buildout, and monetizes AI through search and cloud services., MicrosoftIt spends tens of billions quarterly on AI infrastructure and monetizes it through Azure and Copilot, showing real demand for the buildout.8%
- Cash10%