Morningstar published its list, and 14 of the 16 companies are British. I ran the 13 I’ve already analyzed through my tool:

🟢 EXCELLENT (4)

• $NWG (+1,46 %) NatWest - 5.06%, P/E ratio 8.68x, quality 75/100

• $RKT (-0,94 %) Reckitt - 4.16%, P/E ratio 11.6x

• $HSBA (+0,84 %) HSBC - 3.70%, P/E ratio 10.36x

• $LLOY (+1,29 %) Lloyds - 3.58%, P/E ratio 15.6x

🟣 WATCH (3)

• Relx, AstraZeneca, and Unilever ($REL (-0,45 %) , $AZN (+0 %) , $ULVR (+0,48 %) ). Quality businesses, but valuations no longer offer room to run

🟠 CAUTION (4)

• BP (4.87%), Shell (3.39%), Rio Tinto (4.52%), and Barclays ($BP. (-1,27 %)
$SHEL (-0,24 %) , $RIO (-0,01 %) , $BARC (+1,25 %) ). High returns that mask cyclicality. The 78% marginal tax rate on oil in the UK doesn’t help

🔴 LOW THRESHOLD (2)

• Rolls-Royce $RR. (+1,33 %) : It’s on Morningstar’s list, but pays 0.39%. Quality 35, Opportunity 5

• Glencore $GLEN (+0 %) : Quality 10/100. A high yield can also mask a declining business

Here's the hot stuff from Rolls-Royce Holdings $RR. (+1,33 %)
(LSE: RR. / OTC: RYCEY) H1 2026 Earnings, fresh from London:

🚀 Turbines at Full Throttle & Record Cash Flow

Under CEO Tufan Erginbilgic, Rolls-Royce continues its epic turnaround unabated. The British engine and energy giant shattered analysts’ expectations in nearly every respect in the first half of 2026:

Revenue growth: Operations are booming—consolidated revenue rose, on a currency-adjusted basis, by +14% to GBP 9.92 billion (previous year: GBP 8.80 billion).

Flying Hours Booster (Civil Aerospace): Large engine flying hours reached 106% of the pre-COVID-19 level from 2019 —a massive catalyst for the high-margin spare parts and maintenance business (LTSA).

Cash Surge: The free cash flow soared by +38% to an incredible 1.60 billion GBP in the first half of the year. The company is simply printing money.

🔮 Profitability Surge & Record Margins

The radical cost and pricing adjustment strategy is having maximum impact—operating leverage is kicking in across all three core divisions:

Underlying Operating Profit: Climbed by a spectacular +40% to GBP 1.61 billion (previous year: 1.15 billion GBP).

Operating Margin: Reached a record level of 16.2% (compared to 13.1% in H1 2025).

Business Unit Strength:

Civil Aerospace: Operating profit climbed to GBP 1.02 billion (margin of 19.5%).

Defense: Profit rose to GBP 380 million (margin 14.8%, supported by global rearmament).

Power Systems: Record profit of GBP 245 million thanks to the boom in data centers and emergency power generators.

🤖 Significant upward revision of the full-year forecast & dividend comeback

With the engine running at full throttle, management is once again raising the bar significantly for the full year 2026:

Underlying Operating Profit (FY26): Now raised to GBP 3.1 to 3.3 billion (previously: GBP 2.7 to 2.9 billion).

Free Cash Flow (FY26): Revised upward to GBP 2.7 to 2.9 billion (previously: GBP 2.1 to 2.3 billion).

A Gift to Shareholders: As promised, the Group is paying the interim dividend as promised and is signaling a further increase in the payout ratio for the full year.

⚡ 💡 Jack’s take

What Tufan Erginbilgic is pulling off at Rolls-Royce is one of the most spectacular turnaround masterpieces in European industrial history! In a very short time, a company in dire need of restructuring has been transformed into a highly profitable cash cow.

The quality verdict: The moat in commercial aviation (a duopoly with GE in wide-body aircraft) combined with tailwinds from defense and data centers is massive. Although the stock has already had a massive run, Rolls-Royce is currently underpinning its valuation with rock-solid record figures. The absolute benchmark in the engine sector! ✈️🔋

Dear Community,

To kick off the week, I’d like to introduce you to my “Pick-and-Shovel” wikifolio “Euro AI Backbone” (in German: Backbone). More detailed information will follow; for now, this is just a rough overview.

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Background

The market’s focus is primarily on the U.S., while Europe often plays a more subordinate role. Yet recent years in particular have made it clear just how dependent Europe is on other countries such as the U.S., Russia, and China.

By the time the “Orange Man” began his second term, it had become clear:

Europe must become more independent —not only in the field of defense but also in the field of AI.

For nearly five years, Goldman Sachs has maintained an index called “EU AI Capex,” which consists of 64 European stocks. This served as the blueprint for my wikifolio.

The wikifolio was launched on June 18, 2026. For the wikifolio to receive “Investable” status, it needs, among other things, 10 bookmarks. So I’d really appreciate it if you could click “Add to Watchlist” on the wikifolio—thanks in advance.

_________________________

The “Pick-and-Shovel” Approach

The wikifolio aims to cover as much of the value chain for operating modern artificial intelligence as possible.

The focus here is primarily on five areas:

• The Shovels: Semiconductors and machinery (e.g., lithography systems, wafer deposition, chip assembly)
• The Gas: Electricity and energy generation (e.g., wind power, hydroelectric power, solar power plants)
• Highways: Networks and cables (e.g., transformers, high-voltage undersea cables, power grid infrastructure, transmission lines)
• The brain: Automation and data center cooling (e.g., liquid cooling, power distribution cabinets, data networks, control systems)
• The Physical Foundation: Construction, emergency power, and security (e.g., construction of the facilities, emergency power generators, cybersecurity)

_________________________

Investment Universe

The portfolio includes European large-, mid-, and small-cap stocks.

Focus: Technology (semiconductor equipment), utilities (electricity, grids), and industrials (automation, specialty cables, data center construction, cybersecurity).

The Core: European market leaders with global monopolies and competitive moats.

The Tech Specialists: Profitable second-tier suppliers as yield boosters.

The foundation: Energy producers, grid operators, and construction specialists for stable cash flows and risk hedging.

Regular rebalancing, which typically takes place at the beginning of each month, prevents concentration risk. While the foundation remains unchanged, the weightings of individual securities may be adjusted. The replacement of individual stocks, the addition of new stocks, or the exclusion of individual stocks can also take place at the beginning of the month.

Initially, the portfolio consists of 37 stocks. There is no cash reserve.

The current allocation of holdings is as follows:

By sector:

• Industrial: 44%
• Utilities: 29%
• Technology: 26%
• Consumer Discretionary: 1%

By country:

• Germany: 24%
• United Kingdom: 14%
• Switzerland: 13%
• Netherlands: 12%
• France: 12%
• Spain: 10%
• Italy: 9%
• Denmark: 2%
• Finland: 2%
• Austria: 2%

Investments are made exclusively in European stocks. None ETFs, no investment certificates, no funds, no leveraged products.

_________________________

Initial Holdings

At the start, the portfolio comprises the following 37 securities, sorted by their current weighting:

Infineon $IFX (+1,58 %) , ASML Holding $ASML (+1,89 %) , Siemens $SIE (+1,64 %) , Enel $ENEL (+0,12 %) , Rolls-Royce $RR. (+1,33 %) , Schneider Electric $SU (+0,25 %) , Iberdrola $IBE (+1,22 %) , ABB $ABBN (+0,51 %) , VAT Group $VACN (+0,87 %) , Siemens Energy $ENR (+2,07 %) , Prysmian $PRY (+3,76 %) , ASM International $ASM (+0,55 %) , BE Semiconductor Industries $BESI (+1,14 %) , STMicroelectronics $STM (+0,91 %) , RWE $RWE (+0,03 %) , E.ON $EOAN (+0,93 %) , Legrand $LR (+0,2 %) , National Grid $NG. (+0,47 %) , Nokia $NOKIA (+0,88 %) , SSE $SSE (+0,54 %) , EDP Renovaveis $EDPR (-0,84 %) , Hochtief $HOT (-0,07 %) , Red Eléctrica de España $RED (-0,44 %) , Nexans $NEX (+0,72 %) , United Utilities $UUGRY (+0,97 %) , Enagas $ENG (-0,97 %) , Centric $CENTR , Spirax-Sarco Engineering $SPX (+0,31 %) , Soitex $SOI (+1,04 %) , Geberit $GEBN (+0,19 %) , Aixtron $AIXA (+0,66 %) , Orsted $ORSTED (-1,25 %) , Verbund $VER (-0,49 %) , SAFRAN $SAF (+2,28 %) , Thales $THALES (+0,18 %) , NKT $NKT (+1,52 %) , Andritz $ANDR (-0,12 %)

_________________________

Holding Period

Since infrastructure development is likely to continue for several more years, the holding period is clearly geared toward the long term. Short-term trading is avoided.

_________________________

Sources of Information

The following sources of information are primarily used to identify stocks:

Companies’ quarterly reports and financial statements.

Analyst reports and industry studies from global investment banks.

Business media and financial publications.

_________________________

I’m curious to see how the portfolio will perform over the long term. Monthly updates will keep you informed.

Hier geht es zum Euro AI Backbone-wikifolio

Dear Community,

Throughout last year, I found myself repeatedly wanting to focus on the European market as well. But the same old arguments kept dissuading me: The European market doesn’t deliver; Europe doesn’t meet my desire for a growth-oriented, high-yield portfolio, etc.

I also asked myself: Which sectors and industries do I want to cover? Where do I see enough potential to justify taking the risk? To what extent do I want to align my portfolio with this strategy?

In today’s episode, Alles auf Aktien: Fiese Gewinnwarnung bei BMW und Europas KI-Unabhängigkeitsaktien , something caught my attention:

A basket from Goldman Sachs, consisting of 64 European stocks, with the wonderful name: EU AI Capex.

Performance over the past five years: 17.5 percent annualized, including dividends.

_________________________

And which industries are covered?

• Semiconductors
• Machinery
• Electricity
• Networks
• Cables
• Energy
• Automation

Unfortunately, existing ETFs such as the iShares STOXX Europe 600 Utilities UCITS ETF or the iShares STOXX Europe 600 Technology UCITS ETF do not cover all of these sectors.

"Sounds exactly like what I was looking for," I thought to myself, and used my day off today to create an index tailored to my preferences.

Goldman Sachs has listed 12 of the 64 holdings, including their percentage allocations. The remaining 52 holdings appear to be known only to institutional investors, as the index isn’t publicly available.

So I created my own “Pie” through Trading 212. More specifically, a “Pie” is a personalized investment portfolio in which I can invest in multiple stocks and ETFs according to a percentage allocation I set myself and save toward them simultaneously via a single automated savings plan—with no expense ratio and no order fees.

It would go beyond the scope of this post to write about every individual security, which is why I chose this particular one. I didn’t make these decisions entirely on my own. Gemini helped me with this. In the end, we settled on 37 securities.

_________________________

On Selecting the Holdings

Together, we gradually added European market leaders across the entire value chain. We always kept an eye on the sectors—none should be left out.

_________________________

On the Percentage Allocation

It’s important to note upfront that the “pie” will be funded with 150 euros per month going forward. Since the minimum investment amount at Trading 212 is one euro, the smallest weighting in the “pie” must be at least 0.7%:

1.00 euro / 0.70% = 142.85 euro

The percentage allocation was then based on pricing power and global scalability.

More details on this may follow in a later post.

_________________________

About the Stocks

From EU AI Cortex Basket taken over by Goldman Sachs:

• Infineon ($IFX (+1,58 %)): 7.10%
• ASML ($ASML (+1,89 %)): 6.80%
• Siemens ($SIE (+1,64 %)): 6.00%
• Rolls-Royce ($RR. (+1,33 %)): 5.40%
• Enel ($ENEL (+0,12 %)): 5.40%
• Schneider Electric ($SU (+0,25 %)): 5.40%
• ABB ($ABBN (+0,51 %)): 5.00%
• Iberdrola ($IBE (+1,22 %)): 4.90%
• Siemens Energy ($ENR (+2,07 %)): 4.70%
• ASM International ($ASM (+0,55 %)): 3.70%
• Prysmian ($PRY (+3,76 %)): 3.60%
• BE Semiconductor ($BESI (+1,14 %)): 3.20%

Supplemented by the following stocks:

• VAT Group ($VACN (+0,87 %)): 4.50%
• STMicroelectronics ($STM (+0,91 %)): 2.50%
• Legrand ($LR (+0,2 %)): 2.00%
• RWE ($RWE (+0,03 %)): 1.95%
• Nokia ($NOKIA (+0,88 %)): 1.90%
• E.ON ($EOAN (+0,93 %)): 1.90%
• National Grid ($NG. (+0,47 %)): 1.80%
• SSE plc ($SSE (+0,54 %)): 1.70%
• EDP Renováveis ($EDPR (-0,84 %)): 1.60%
• Red Eléctrica ($RDEIY (+0 %)): 1.50%
• Nexans ($NEX (+0,72 %)): 1.50%
• Hochtief ($HOT (-0,07 %)): 1.50%
• Enagás ($ENG (-0,97 %)): 1.40%
• United Utilities ($UU. (+0,74 %)): 1.40%
• Spirax-Sarco ($SPX (+0,31 %)): 1.30%
• Centrica ($CNA (+0,85 %)): 1.30%
• Aixtron ($AIXA (+0,66 %)): 1.30%
• Orsted ($ORSTED (-1,25 %)): 1.15%
• Verbund AG ($VER (-0,49 %)): 1.10%
• Soitec ($SOI (+1,04 %)): 1.10%
• Safran ($SAF (+2,28 %)): 1.00%
• Thales ($HO (+0,58 %)): 1.00%
• Geberit ($GEBN (+0,19 %)): 0.90%
• NKT A/S ($NKT (+1,52 %)): 0.80%
• Andritz ($ANDR (-0,12 %)): 0.70%

The figures $IG (+0,59 %) , $SRG (+0,62 %) , $TRN (+1,03 %) , $ALFA (+0,06 %) , $ATCO B (+0,69 %) or $AEMMY can unfortunately only be traded via CFDs on Trading 212. Therefore, these securities could not be included.

_________________________

Trading 212 Pie

The Pie now accounts for about 10% of my portfolio, and I’ll be contributing 150 euros to it each month going forward.

I am convinced that Europe will succeed in becoming more independent. However, in my opinion, a self-sufficient Europe without any dependence whatsoever is simply not possible (keyword: globalization).

_________________________

Pie Composition

By country:

• Germany: 24.35%
• France: 15.4%
• Netherlands: 13.7%
• United Kingdom: 12.9%
• Switzerland: 10.4%
• Italy: 9%
• Spain: 7.8%
• Denmark: 1.95%
• Austria: 1.8%
• Portugal: 1.6%

By sector:

• Technology: 32.3%
• Industrial & Capital Goods: 31.5%
• Utilities & Energy Infrastructure: 36.2%

By industry:

• Semiconductors & Data Center Chips: 27.8%
• Energy Equipment & Grid Technology: 25.5%
• Electricity Generators: 16.1%
• Physical Networks & Storage: 10.1%
• Cable Infrastructure: 5.9%
• Vacuum Technology & Components: 6.5%
• Network Technology & Connectivity: 1.9%
• Data Centers & Industrial Construction: 3.1%
• Cyber and Perimeter Security: 3.1%

_________________________

I’m curious to see how the pie chart will develop.

P.S.: You can find the pie chart on Trading 212 under the name Euro AI Backbone GS to copy.

According to Ifo President Clemens Fuest, Europe faces an “existential threat”: Europe uses AI but has virtually no infrastructure. About 75 percent of the world’s high-performance computing capacity for modern AI is located in the U.S., with China accounting for about 15 percent and the EU for less than five percent.

He is therefore calling for an emergency program that includes more data centers, chip factories, energy infrastructure, faster approvals, and, if necessary, special economic zones. Energy is becoming a strategic issue, as AI data centers require enormous amounts of reliable electricity.

A study by the American investment bank Goldman Sachs titled “The Post-Modern Cycle” describes a new investment supercycle: AI, data centers, electricity, chips, defense, and infrastructure. The digital world suddenly needs concrete, cables, transformers, and power plants.

Goldman has created a corresponding portfolio called EU AI Capex.

It comprises 64 components. It is Europe’s publicly traded bet on AI infrastructure. Over the past five years, the index has gained 124 percent including dividends, which translates to an annualized return of 17.5 percent. The Stoxx Europe 600 has only managed 64 percent over the same period—an annualized rate of 10.3 percent.

The largest holdings show what this is all about: Infineon
$IFX (+1,58 %) has a weighting of 7.1 percent, ASML
$ASML (+1,89 %) stands at 6.8 percent, Siemens $SIE (+1,64 %) accounts for 6 percent, Rolls-Royce $RR. (+1,33 %) , Enel $ENEL (+0,12 %) and Schneider Electric
$SU (+0,25 %) at 5.4 percent. ABB $ABBN (+0,51 %) has a weighting of five percent, Iberdrola
$IBE (+1,22 %) at 4.9 percent, Siemens Energy
$ENR (+2,07 %) at 4.7 percent, ASM International
$ASM (+0,55 %) at 3.7 percent, Prysmian $PRY (+3,76 %) at 3.6 percent, and BE Semiconductor
$BESI (+1,14 %) at 3.2 percent.

This means the index is not purely a tech index, but rather reflects Europe’s physical AI value chain: semiconductors, machinery, electricity, networks, cables, energy, and automation. ASML is Europe’s strategic crown jewel. Fuest even says that ASML is so far Europe’s only truly strategic asset in this sector, because the U.S. also depends on it.

The risk: Europe talks, but doesn’t build. Energy remains expensive, permits take a long time, regulation slows down projects—and in the end, we remain customers of American models.

The opportunity: Europe is waking up. Then digital sovereignty will trigger a capex boom, and stocks will get a new boost. Anyone who wants European AI must definitely buy European infrastructure.

Source: “Welt” (excerpt), June 17, 2026

To round off my setup on the topic of the AI energy boom, I have added to my portfolio alongside $GEV (+0,88 %) and $ENR (+2,07 %) a little. Both cover the macro grid infrastructure and benefit from higher forecasts.

$WIRE (+1,04 %) Bought to further overweight GEV and Siemens Energy as a base.

$2308 Delta Electronics, also via the $FLXT (+0,8 %) Taiwan Index. Delta supplies power management and power supplies at the server rack level, which is important for AI clusters.

$RR. (+1,33 %) Rolls Royce is the operational complement. Provides the decentralized link directly at the interface to the data center (emergency power, compact gas power plants. Good backup to Siemens and GEV.

Good morning my dears

Juan has already arrived back in the USA and visited a company for you in San Jose, California.

Which we may even introduce to you this afternoon.

So you can start the new stock market week with these two companies in mind and be well prepared.

During this time, I continued to work on the topic of energy in Europe.

Today I would like to introduce you to a player that is not entirely unknown to most of you. Some of you may be surprised that I am introducing you to this company today on the subject of energy and electricity 🔌.

The Group is benefiting from several global megatrends at the same time: increasing air traffic, the defense boom, energy demand from AI data centers and Small Modular Reactors (SMR).

Emergency power solutions for data centers and SMR technology are particularly exciting.

Now some of you will probably know that this is about Rolls Royce $RR. (+1,33 %) is involved.

As always, we look forward to opinions and a discussion in the comments. As always, the Prompt family is also invited to join in.

(@Raketentoni / @Aktienhauptmeister )

Rolls-Royce Holdings plc specializes in the development, manufacture and marketing of engines for the aviation, marine and energy sectors. The breakdown of net sales by product family is as follows:

- civil aircraft engines (51.8%);

- military aircraft engines, marine engines and submarine nuclear power plants (23.8%);

- Energy and propulsion systems (24.4 %): intended for power plants.

The geographical breakdown of net sales is as follows: United Kingdom (14.6 %), Germany (5.8 %), Europe (14.6 %), United States (27.4 %), North America (2.5 %), China (7.1 %), Asia (13.5 %), Middle East (7.9 %), Africa (2.8 %), Australasia (2 %), Central and South America (1.8 %).

Number of employees: 43,162

Breakout alert for the winner of several megatrends! Rolls Royce Holdings on the upswing after figures

Von S. Bank - Updated on 06.05.26 13:43

Rolls Royce Holdings is bucking the weakness among defense stocks. There are good reasons for this: The company is in the midst of a far-reaching transformation to become a "highly profitable, resilient growth company". Particularly striking: strong margin increases, high free cash flow and growth in all three core segments - Civil Aerospace, Defense and Power Systems. The Group is simultaneously benefiting from several global megatrends: increasing air traffic, the defense boom, energy demand from AI data centers and Small Modular Reactors (SMR).

Civil Aerospace is the Group's most important cash flow driver. The aftermarket business is particularly attractive, as maintenance contracts deliver high margins over decades. The 'Defense' segment delivers stable cash flows with long contract terms and a high level of political support. Of particular interest: nuclear technologies and future fighter jet platforms. The 'Power Systems' segment is developing into the Group's AI and energy winner. Emergency power solutions for data centers and SMR technology are particularly exciting.

The Power Systems division delivered a record order intake in the first quarter, driven by data centers and government contracts. With an order backlog of GBP 7.3 billion in this division, planning reliability for the coming quarters is high. The company also recently secured further long-term revenue streams in the defense segment by equipping the Australian frigates and the Turkish Eurofighter fleet. The financial targets for 2026 remain unchanged with an underlying operating profit of GBP 4.0 billion to GBP 4.2 billion and a free cash flow of GBP 3.6 billion to GBP 3.8 billion.

Rolls-Royce Holdings plc-2025 Full Year Results – Presentation

Juan analysis on Rolls-Royce (2025-2028)

(short, precise, investor-focused - in the typical Juan tone)

1. growth & momentum

Rolls-Royce delivers four years of continuous double-digit sales growth. 2025-2028 sales increase from £20.1 billion → £27.3 billion.driven by commercial engines, services and defense. The EBIT increase remains strongbut normalizes after the turnaround: from +40 % (2025) to +15 % (2028).

2. profitability

The margins show a clear picture of a company that wants to return to the Champions League:

• EBITDA margin rises to 22,36 %
• EBIT margin climbs to 19,53 %
• FCF margin improves to 18,62 %

This is extremely strong for an industrial group extremely strong and signals structural efficiency.

3. cash flow & balance sheet

Free cash flow grows from £3.27 billion → £5.09 billion. - a massive lever for valuation and debt reduction. Net debt turns deeply negative: -£1.97bn → -£5.43bn. → Rolls-Royce becomes effectively net debt-free and builds up liquidity.

4. profitability & return on capital

The ROE is extremely distorted due to the return to positive equity extremely distortedbut the direction is right: 2026-2028: 126 % → 172 % → Signal: Turnaround completed, capital base healthy again.

5. valuation & outlook

EPS clearly increases: 0,69 → 0,51 (2025-2028, with dip in 2026). However, the operating story remains intact:

• rising margins
• rising cash flow
• Decreasing debt
• structural demand in the engine and service business

Juan's conclusion

Rolls-Royce is no longer a turnaround casebut a scaling cash flow compounder. The combination of margin expansion, strong FCF and massive debt reduction makes the share one of the most attractive quality re-ratings in the European industrial sector. For momentum and FCF investors, Rolls-Royce remains a top tier.

Market value 100,831

Number of shares (in thousands) 8,266,184

Date of publication 26.02.2026

Juan valuation analysis (ultra-compact)

Juan pushes up his glasses, looks at the valuation line and grins:

"Rolls-Royce is expensive - but not too expensive for the story.
P/E ratio high, P/B ratio astronomical, but the market is clearly paying for the margin and FCF explosion.
PEG clean >1 again from 2027, so valuation runs into normality.
FCF yield increases every year, over 5% in 2028 - that is the real driver.
Dividend grows steadily, yield remains low, but cash power is the argument.
In short: premium multiple, but with a premium foundation. Not a bargain - a quality momentum play."

Performance:

1 week +1.72 %

1 month -4.55 %

6 months +7.14 %

1 year +56.63 %

3 years +707.01 %

5 years +1,042.78 %

$RR. (+1,33 %)

Rolls Royce Holdings (ISIN GB00B63H8491): Several global supercycles are at work here. Rolls-Royce is transforming itself from a cyclical industrial company into a strategic infrastructure and technology provider. The share is on the verge of breaking out again. With a P/E ratio of 32, the share does not look cheap. But the chart looks all the better. I expect a sustained breakout movement.

PRICE: €14.11 (08.05.2026 at 22:00)

My last bottleneck posts were about HBM/Memory, Power & Cooling and Advanced Packaging. All three topics show that the critical points in the AI stack are shifting further and further into the physical infrastructure.

Today it's all about energy/grid.

Modern AI systems not only require computing power, but also enormous amounts of of stable energy. Several bottlenecks are now emerging in parallel. What I find particularly remarkable is that many investors think of energy almost exclusively in terms of electricity production. The actual bottleneck is spread across several levels of the infrastructure.

Level 1: Generation

This is where the energy itself is generated. For me $GEV (+0,88 %) (GE Vernova), $RR. (+1,33 %) (Rolls-Royce Holdings) and $BE (+3,37 %) (Bloom Energy) are exciting examples. The bottlenecks here are mainly in base load, flexible generation and local energy supply around new AI and data center load profiles. And Rolls-Royce could also become a player in Small Modular Reactors (SMR).

Level 2: Transmission

This is about being able to transport large amounts of energy at all. This sector is currently almost the biggest physical grid bottleneck. I find it particularly relevant here $PWR (-1,09 %) (Quanta Services), $PRY (+3,76 %) (Prysmian) and $HPS.A (+1,94 %) (Hammond Power Solutions). Typical bottlenecks are HVDC, high voltage, transformers and the massive expansion of the grid infrastructure.

Level 3: Distribution

Ultimately, the energy must be available locally, for industry, cities, data centers or critical infrastructure. There I look above all at $POWL (+1,97 %) (Powell Industries), $VICR (+2,92 %) (Vicor) and $MPWR (+1 %) (Monolithic Power Systems). The problems here are increasingly arising with power delivery, medium voltage, AI rack power and stable local grids.

Level 4: Implementation

This area is often underestimated. Because even if technology, capital and planning are available, projects still have to be physically implemented in the end.

That's why I think $FIX (+0,58 %) (Comfort Systems USA), $EME (+0,67 %) (EMCOR Group) and $STRL (+1,33 %) (Sterling Infrastructure) interesting. The bottlenecks here often lie in EPC capacities (plant construction), skilled workers, construction speed and the actual realization of large infrastructure projects.

Energy/Grid is currently so exciting for me because the bottleneck is not in a single place, but runs through the entire energy chain. but runs through the entire energy chain. That's why I consider this topic to be one of the most important bottlenecks around AI infrastructure at the moment.

#wikifolio
#scalelimits