The AI Trade Landscape
Memory, optics, photonics, compute. Where do these groups stand today? Have they topped?
The AI trade hasn’t been the same.
But does that mean it’s over?
Ever since Leopold Aschenbrenner and the Korean margin traders blew up, something changed in the market.
We’ve seen a major broadening across a number of groups and what was once a market that demanded you own AI infrastructure has changed to a market where you could own some software, FAANG, etc.
And it now seems like people have moved on from the AI trade.
Just as Nvidia announced a massive $500B+ initiative that will funnel an enormous amount of capital directly back into AI infrastructure. Everyone seems firmly against the idea which makes me think it’ll work. Are we really smarter than Jensen, Blackrock, Goldman, etc? I don’t think so.
I want to quickly mention that last week I posted an article on what I believe is the next big AI trade here.
So far, it’s working well. I own two of the stocks mentioned but I think there’s plenty of gas left in the tank. Almost nobody is talking about this, still… you want to be early to these trades!
This trade feels similar to when I highlighted CPUs here and spotlighted:
AMD @ $200
Intel @ $45
ARM @ $140
If you’re not already in the subscriber chat, I strongly suggest paying attention to it.
This is where I post all of my new trades as I enter them. I walk through the trade idea entirely including my thesis, risk level, cost basis, and more.
The subscriber chat is also where I post a daily thread with my thoughts on the day ahead, relevant headlines and macro events, my main focus names, notable upgrades and downgrades, and anything else I’m watching.
It’s basically become a live market group chat. We have a ton of smart people sharing ideas, setups, headlines, and observations throughout the day, and there’s a lot of genuine alpha in there.
I honestly believe it might be one of the most (if not the most active) subscriber chats on Substack.
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In the remainder of this article, I’m going to discuss:
The broader AI trade
The “new” leaders of the AI trade
My positioning in the AI trade
The setup that reminds me of NVDA in 2023
The market headed into CPI + PPI tomorrow
Memory
Optics
Photonics
Compute
And more.
Many people seem to be chasing the same stocks that led the market higher over the past few months.
But they’re ignoring the new potential leading AI subthemes brewing underneath the surface.