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When I first got bullish on AI in 2023, the only way I could think of to express the trade was NVDA + hyperscalers. It just seemed like they had all the advantages across compute, data, talent and distribution
I'm no longer sure this makes sense. Hyperscalers have largely failed to execute on AI at either the model or application layer. If they're just gonna be compute providers, I think they'll do well for a while but eventually the model and application companies will own the users and generate most of the revenue. At this point, they'll be able to vertically integrate compute as we're already seeing Grok + SpaceX do
Over the last few months, I've shifted a lot of my stock exposure to energy (gas turbines, nuclear), infrastructure (data centres + supply chain) and rare earths / commodities
Curious how others are feeling about this?
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