If I had to rank AI themes for the next 12 months:
🥇 Memory/HBM: Still the clearest bottleneck. AI compute can be added, but HBM supply remains constrained. Names like Micron and SK Hynix are direct beneficiaries.
🥈 Power & Data Centres: AI demand ultimately hits power limits. Utilities, cooling, electrical equipment and data centre infrastructure could become the next constraint.
🥉 Optical Communications: Essential for connecting AI clusters. Strong growth, but more cyclical and competitive.
4️⃣ Space Economy: Massive long-term potential, especially satellite connectivity and launch services, but execution risk remains high.
5️⃣ AI PCs: Likely a slower replacement cycle than the market hopes.
For most investors, I'd favour thematic ETFs over stock-picking. AI winners can change quickly, while ETFs reduce single-company risk.
For alpha seekers, I still prefer concentrated exposure in memory/HBM. It remains the part of the AI chain where supply-demand dynamics look strongest.
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