Max Leverage AI Stack
Nico Cerdeira@nicocerdeira
−13.7%
since Sep 30
The idea
I believe the AI buildout is a multi-year theme worth expressing at full intensity, so this take stacks leveraged exposure across the layers that have it: platforms, compute, and the chips underneath. Power, data centers, and networking don't have leveraged funds, so I hold the highest-beta names in those spaces instead. I keep 10% in cash to add on the sharp drops this kind of basket always sees, and I'd rethink the whole thing if the buildout itself loses momentum, not just on a rough week.
What it owns
- The big platforms are spending hundreds of billions on AI infrastructure and applications, each held through a fund that doubles its daily move. · Direxion Daily Technology Bull 3X SharesIt runs the big tech sector at three times its daily move, so it works if AI spending keeps lifting the largest tech companies as a group., Direxion Daily MSFT Bull 2X SharesIt doubles the daily move of Microsoft, which is spending tens of billions on AI data centers and selling the results through Azure and Copilot., Direxion Daily GOOGL Bull 2X SharesIt doubles the daily move of Google, which trains frontier models, builds its own AI chips, and needs Gemini and Google Cloud to gain from AI., Direxion Daily META Bull 2X SharesIt doubles the daily move of Meta, one of the biggest buyers of AI compute that is already showing AI paying off in ad targeting., Direxion Daily AMZN Bull 2X SharesIt doubles the daily move of Amazon, whose AWS is the biggest cloud and functions as a landlord for the AI buildout., Direxion Daily PLTR Bull 2X SharesThis fund amplifies a bet on Palantir's commercial AI contracts as the core driver of growth for an expensive stock, making it the most fragile piece of the platform layer.30%
- Chips are the scarcest part of the AI buildout, and these funds move two to three times as fast as the sector itself. · Direxion Daily Semiconductor Bull 3X SharesIt gives three times the daily move of the semiconductor sector, so it works as long as AI demand keeps chipmakers growing as a group., GraniteShares 2x Long NVDA Daily ETFIt doubles the daily move of Nvidia, which sells the chips that almost every AI model trains on and remains the default choice for compute., GraniteShares 2x Long AMD Daily ETFIt doubles the daily move of AMD, the main challenger for AI chips, so it pays off if the buildout is big enough for a strong number two., Direxion Daily TSM Bull 2X SharesIt doubles the daily move of TSMC, which manufactures nearly every AI chip including Nvidia's and AMD's, making it the factory behind the whole stack.28%
- Every new AI data center needs electricity, cooling, and grid infrastructure, and the companies supplying them are growing faster than the market expected. · Vistra CorpIt is one of the biggest sellers of electricity to data centers, and new data center power deals drive its growth., GE VernovaIt makes turbines, transformers, and grid gear that every new data center needs, with a backlog stretching years., Vertiv HoldingsIt sells the cooling and power equipment that keeps data centers alive as AI chips run hot, and its orders track data center construction almost directly., Constellation EnergyIt owns the largest US nuclear fleet, and AI companies are signing long deals for exactly the kind of clean, always-on power it produces.18%
- AI clusters are only as fast as the connections and memory between chips, a bottleneck that determines how efficiently compute translates to real performance. · Arista NetworksIt builds the switches that wire thousands of AI chips into one training cluster, with Microsoft and Meta among its biggest buyers., Micron TechnologyIt is one of only three companies on earth that make high-bandwidth memory, which AI chips cannot run without., Credo TechnologyIt sells the high-speed cables and chips that carry data between racks in AI data centers, with revenue growing alongside a small number of huge cloud customers., Astera LabsIt makes the connectivity chips that let AI processors talk to each other inside a server, a piece the buildout cannot skip.14%
- Cash10%