The Next AI Shortage Trade

Bottlenecks and shortages...

We’re in a “bottleneck” and “shortage” environment.

Memory, optics, photonics, CPUS, etc. Next it’s…

If you recall, back on March 22nd I published an article titled “The Next AI Bottleneck” linked here.

In this article, I went in depth on why I believed the CPU trade was about to take off. I highlighted five CPU stocks I thought were set to benefit, and I’d say they played out pretty well.

INTC: $44 → $70 (+59%)
AMKR: $45 → $71 (+58%)
AMD: $202 → $285 (+41%)
ARM: $143 → $180 (+26%)
QCOM: $130 → $137 (+5%)

In less than one month.

I told subscribers back in January that I was buying Intel as a long term investment at $39 here. In the referenced AI bottleneck article above, I said I wanted to add more exposure to the group, and a few days later I sent a notification that I bought ARM at $140.

The CPU trade is strong, but what’s coming next has a chance to be just as powerful.

What you need to realize is the market is rotating around the AI trade. GPUs, memory, photonics, optics, cooling, CPUs, etc.

AI is a chain of dependences. When one bottleneck or shortage gets partially relieved the pressure shifts elsewhere.

And that brings me to the next trade.

In the remainder of this article I’m going to walk through the next major AI trade that I don’t see many people discussing, just like very few were talking about CPUs a month ago. I’m going to break down the thesis behind the idea, the names I already own in this group, the stocks with the most direct exposure, the names I’m most focused on, and more.

The last bottleneck paid. I have a strong feeling this one will too…