I see it the same way. For me, the biggest risk right now actually lies less in copper or steel prices and more in the hyperscalers’ willingness to invest.
The difference, however, is this: If demand for AI infrastructure remains structurally strong, postponed projects can often only be delayed, not permanently scrapped. The physical need doesn’t just disappear.
That’s precisely why I find companies like Powell or Sterling so interesting. They aren’t at the end of the value chain, where the winners can constantly change, but rather at bottlenecks in the physical infrastructure. I consistently look for these bottlenecks across Digital AI, Physical AI, Space, and Defense.
Whether OpenAI, Meta, Amazon, or a completely different player ultimately comes out on top is often secondary when it comes to the switchgear, the transformer, or the foundation of the data center. Someone still has to build the infrastructure.
That doesn’t make these stocks risk-free for me, but in a way, they’re more predictable than many of the highly valued AI software stories.
The difference, however, is this: If demand for AI infrastructure remains structurally strong, postponed projects can often only be delayed, not permanently scrapped. The physical need doesn’t just disappear.
That’s precisely why I find companies like Powell or Sterling so interesting. They aren’t at the end of the value chain, where the winners can constantly change, but rather at bottlenecks in the physical infrastructure. I consistently look for these bottlenecks across Digital AI, Physical AI, Space, and Defense.
Whether OpenAI, Meta, Amazon, or a completely different player ultimately comes out on top is often secondary when it comes to the switchgear, the transformer, or the foundation of the data center. Someone still has to build the infrastructure.
That doesn’t make these stocks risk-free for me, but in a way, they’re more predictable than many of the highly valued AI software stories.
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@ScaleLimits Thanks for your feedback ✌🏼
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