Dear Community,

Now that we have covered and examined the energy source (nuclear) and the form of energy (industrial heat), the next logical step is energy transmission and control. The topic that is completely under the radar in most considerations but is absolutely critical to the AI and energy transition is: "HVDC & Grid-Edge-Intelligence - The New Silk Road of Electricity".

Why is this underrepresented?

Investors often buy copper mines (because of the power lines) or traditional utilities. However, hardly anyone talks about high-voltage direct current transmission (HVDC) and software control at the end points of the grid. The problem is that we often produce electricity where no one needs it (offshore wind farms, desert solar) and consume it where there is no room for power plants (AI data centers, megacities). Conventional alternating current loses too much energy over long distances. HVDC is the solution - and only a handful of companies worldwide have mastered this technology.

1. the hardware giants of the "electricity highways" (HVDC)

Prysmian ($PRY (-5,59 %) )

The Italian world market leader is the backbone of global networking. They are masters of high-voltage direct current (HVDC) transmission - the only technology for transporting electricity over thousands of kilometers almost loss-free. Prysmian is a global manufacturer of cables and systems for energy transmission, distribution and telecommunications. The company develops, produces and supplies high- and low-voltage cables, submarine cables and fiber optic systems for grids and industrial applications.

• Customers & sales: Customers are energy suppliers, project developers, construction and industrial companies as well as telecommunications providers. The business model combines large-scale projects with series production and includes engineering, installation and after-sales services.

• Revenue model: Revenue is generated through product and system sales, project-based turnkey contracts, service and maintenance agreements and long-term supply contracts. Differentiation is achieved through R&D (research & development), specialized technologies and a global logistics network.

• Strategy: Prysmian's strategic focus is on infrastructure projects, grid electrification, digitalization and sustainable solutions to support the energy transition.

• Current situation: The company generates record sales (approx. €18-20 billion) through major projects such as the German "SuedLink" or offshore wind connections. Its lead lies in 525 kV technology.

• Opportunities: An order backlog that extends until 2028/2029 provides enormous planning security. Analysts see further potential in 2026, as the demand for submarine cables for interconnectors is growing at a double-digit rate.

• Risks: High capital commitment and dependence on commodity prices for copper and aluminum.

NKT A/S ($NKT (-1,99 %) )

A Danish cable specialist that is considered a "pure play" in network expansion.

• Core business & offering: NKT develops, manufactures and supplies high-voltage cables and complete cable systems for the transmission of electrical energy - both onshore and submarine cables for grid connections and offshore wind farms. The range includes engineering, production, cable accessories, testing, logistics and turnkey project management including cable laying and commissioning.

• Markets & revenue model: The main customers are grid operators, energy suppliers and renewable energy developers. Revenue is generated from project-based contracts and long-term service and maintenance agreements. Differentiation is achieved through technical expertise, vertical integration and life cycle services. NKT also focuses on digitalization for monitoring as well as material and energy efficiency.

• Business model focus: NKT concentrates purely on high-voltage solutions. As global production capacities for these cables are extremely scarce, NKT has exceptional pricing power.

• Opportunities: The company is benefiting massively from the EU grid expansion plan. Price targets for 2026 are in some cases 20-25% above the current level.

• Risks: Project risks when laying cables in the sea can lead to expensive delays.

2. intelligence at the edge of the grid (Grid-Edge & Infrastructure)

Hubbell Inc. ($HUBB (-1,15 %) )

Hubbell is the secret king of US infrastructure. They make everything you need to physically connect data centers and renewables (insulators, switches, poles). Hubbell is an industrial manufacturer that designs, produces and distributes electrical and electronic products for residential, commercial, industrial and utility applications. The product portfolio ranges from plug-in and connection solutions to components for high-voltage grids.

• Business model: Revenue is generated through the sale of hardware and related components to electrical companies, construction and industrial customers via direct sales, distributors and OEM partnerships (original equipment manufacturers). Supplementary services and after-sales support strengthen customer loyalty. Product development, manufacturing and an international production and sales network are core activities.

• Leverage: The "US Infrastructure Act" means that billions flow into their products. With software solutions such as Aclara360, they are also digitizing the end points of the grid (grid edge).

• Growth & strategy: Focus on technological progress, targeted acquisitions to expand the product range and positioning in grid modernization drive organic growth; operational efficiency and market-oriented innovations support returns.

• Opportunities: High pricing power and a very defensive customer base (US utilities).

• Risks: Focus on North America makes it vulnerable to local economic downturns.

Eaton ($ETN (-4,29 %) )

Eaton is the specialist for power management in data centers. They ensure that the power peaks from AI servers (AI power bursting) do not burst the local network.

• Core activity: Eaton develops and sells solutions for the efficient, safe and reliable distribution, control and storage of electrical, hydraulic and mechanical energy. The portfolio includes switchgear, protection and control devices, power distribution and energy storage systems as well as components for the aviation industry.

• Revenue model: The model combines product sales, system integration, engineering services, after-sales services and software platforms for utilities, industry, data centers and transportation. Revenues are generated from product sales, project-related integrations, recurring service contracts and software licenses.

• Focus: They are driving the shift from AC (alternating current) to DC (direct current) within data centers, which dramatically increases efficiency. Research, acquisitions and partnerships strengthen technological differentiation.

• Opportunities: Eaton is at the center of the AI boom. Anyone who wants to build data centers cannot ignore its hardware.

• Risks: The share is no longer a bargain in 2026; expectations are high.

3. software & virtual power plants

Schneider Electric ($SU (-1,48 %) )

Schneider is no longer a simple industrial group, but a software giant. The company is a global provider of energy management and automation and integrates hardware, software and services.

• Offering: The offerings cover electrical distribution, building automation, industrial and data center systems. Sales are conducted via direct business, a global partner network and certified integrators.

• Digital model: With digital platforms and connected IoT solutions, Schneider delivers analytics, remote monitoring and subscription services, generating recurring software and service revenue. Through their platforms, they control millions of decentralized endpoints and integrate AI directly into the hardware (edge computing) to autonomously balance the network.

• Service & retention: Supplementary services such as consulting, installation, maintenance and lifecycle management promote energy efficiency and sustainability and secure long-term customer relationships.

• Opportunities: Market leader in the digitalization of the energy world ("Electricity 4.0").

• Risks: Geopolitical tensions can disrupt the global supply chains for its components.

Stem Inc. ($STEM (-10,08 %) )

A more speculative look into the future: Stem uses the Athena AI platform to manage battery storage systems in a profit-optimized way.

• Business model: transition from pure battery vendor to high-margin software provider (SaaS).

• Opportunities: When electricity prices become more volatile due to renewables (negative prices), Stem earns money through smart storage management.

• Risks: The company is still in the phase of proving lasting profitability - a classic growth stock with high volatility.

Strategic conclusion: Another physical frontier of digitalization

Looking at the analyses of recent weeks, one thing becomes clear: energy generation (nuclear power) and energy use (industrial heat/AI) are only worth as much as the network that connects them. The companies presented here are the "toll booths" on the electricity highways of the future.

While software scaling is almost infinite, the hardware world is reaching its physical limits. The massive investment backlog in global power grids and the immense hunger of AI data centers make these infrastructure assets the real gatekeepers of transformation. Investing in HVDC cables, smart transformers and grid software is not betting on the next short-lived trend, but on the indispensable foundation of our modern civilization. The valuation of some stocks may seem high by historical standards, but we are only at the beginning of a decade in which the physical networking becomes the most valuable asset of the global economy.

My favorites: Focus on growth & bottlenecks

Many of you ask which companies I would personally invest in. If I look at the list through the growth perspective two names stand out in particular: Eaton and NKT A/S. Here is the reason for my choice:

1. Eaton ($ETN (-4,29 %) ): The accelerator of AI infrastructure

For me, Eaton is currently the company with the strongest momentum in the data center sector.

• Growth levers: While the traditional industrial business is solid, demand in the AI sector is exploding. AI servers require a completely new electrical architecture - from higher power density to direct cooling and DC integration.

• The potential: Eaton is massively expanding its capacity and can push through exceptionally high margins due to the enormous urgency in building new AI hubs. If you are betting on the physical foundation of the AI turnaround, this is where you will find the highest operational potential. It would be my "base investment" for stable excellence in the data center market.

2. NKT A/S ($NKT (-1,99 %) ): The "pure play" bottleneck

Compared to industry giant Prysmian, NKT is smaller, more focused and therefore much more agile - an ideal scenario for growth investors.

• Growth leverage: We are experiencing an extreme shortage of high-voltage cables worldwide. As a "pure play", NKT is concentrating precisely on this segment and is massively expanding its capacities (e.g. through new factory towers in Germany and Sweden) in order to work off the huge mountain of orders.

• The potential: The market for HVDC cables is an oligopoly of only 3-4 serious players worldwide. Almost every additional euro of demand flows directly into the profit margin. Although growth is capped by physical production, the predictability of double-digit growth is extremely high due to the massive demand overhang.

I would therefore point to a combination of physical necessity and technological bottleneck and technological bottleneck: Eaton secures the power supply of the AI data centers, while NKT supplies the indispensable hardware for the global power highways. Two companies that not only benefit from the trend, but make it possible in the first place.

So I pass the question on to you: have we underestimated the physical effort of the energy transition so far? If we have to build electricity highways across continents and oceans, who do you think are the absolute basic investments that will be essential if we want to keep the lights on in 2030? I look forward to your comments and strategies!

Best regards ✌🏼

Anderlé

$PLTR (-3,45 %)
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$CMG (+0,55 %)
$ALV (+0,2 %)
$LIN (+0,07 %)

Which figures do you pay particular attention to?

$NVDA (-2,93 %)
$IREN (-12,95 %)
$JLL (+0 %)
$GOOGL (-1,59 %)
$AMZN (-1,41 %)
$META (-2,98 %)

$JLL (+0 %) says the cycle will continue until 2030. 3Trillion! $, that's 3.000.000.000.000!!!! Will be invested. Pre-letting is currently >70%. Occupancy at 97%!

Obstacles are delivery difficulties in construction and power. Good news for blade manufacturers, e.g. of UPS, cooling etc. ($VRT (-6,53 %)
$JCI (-2,24 %)
$CARR (-1,12 %)
$SU (-1,48 %)
$ETN (-4,29 %)
$GNRC (-7,24 %)
$CSCO (-0,86 %)
$ANET (-4,89 %)
$COMM (-1,6 %)) and companies like $IREN (-12,95 %) who have already secured power.

Gas will also continue to be important.

More than half of this will take place in the USA and Europe will fall behind.

Which blade manufacturers are you focusing on? Where do you see the greatest potential?

I myself am with $NVDA (-2,93 %)
$VRT (-6,53 %) and $IREN (-12,95 %) invested.

Source: https://www.datacenterdynamics.com/en/news/not-a-bubble-3-trillion-data-center-investment-supercycle-expected-by-2030-despite-challenges-jll/

As many of you may or may not have noticed, at the end of 2025, the Trump Media & Technology Group ($DJT) launched five ETFs under the Truth.Fi label.

They are positioned as “America First” investment products with a focus on security, energy, innovation, iconic companies, and real estate in Republican-leaning states.

At first glance, these seem like clear themes. Upon closer inspection, however, structural weaknesses, small fund sizes, and a very strong political narrative become apparent. Below is a sober, deliberately skeptical analysis of all five ETFs.

1) Truth Social American Security & Defense ETF
($TSSD)
🛡️

Focus: Defense, Security, Cybersecurity

Expense ratio: approx. 0.65%

Fund assets: approx. $246,000

Number of holdings: around 58

Largest holdings:

RTX Corp ($RTX) (+1,86 %)

Palantir Technologies ($PLTR) (-3,45 %)

Palo Alto Networks ($PANW) (-5,53 %)

Assessment:

The fund’s thematic structure is clear and combines traditional defense stocks with modern software and cybersecurity companies. The major issue, however, is the extremely low fund assets. With only about a quarter of a million USD, liquidity is very limited. High spreads and a potential risk of closure are realistic scenarios. Comparable defense ETFs are significantly larger, more affordable, and more stable.

2) Truth Social American Energy Security ETF ($TSES) ⚡

Focus: U.S. energy, oil, gas, and energy infrastructure

Expense ratio: approx. 0.65%

Fund assets: not transparently disclosed, presumably very low

Number of holdings: around 68

Largest holdings:

Exxon Mobil ($XOM) (+2,04 %)

Chevron ($CVX) (+2,46 %)

Eaton Corporation ($ETN) (-4,29 %)

Assessment:

The ETF focuses on classic U.S. energy leaders. This is not an innovative approach, but rather a very traditional sector bet. The political term “energy security” does not change the fact that, at its core, investors are buying an expensive energy ETF with an unclear fund size. Without sufficient inflows, its tradability remains questionable.

3) Truth Social American Next Frontiers ETF ($TSNF) 🚀

Focus: Future technologies, innovation, space exploration, industry

Expense ratio: approx. 0.65%

Assets under management: not clearly disclosed, presumably very low

Largest holdings:

Planet Labs ($PL) (-6,64 %)

Marvell Technology ($MRVL) (-8,7 %)

Intuitive Machines ($LUNR) (-9,29 %)

Assessment:

The name sounds visionary, but the structure remains vague. “Next Frontiers” is not a clearly defined investment factor, but rather an umbrella term. Many smaller, partly speculative stocks, little transparency regarding weightings, and a lack of track record make the fund difficult to assess. The ETF comes across more like a hodgepodge of themes than a coherent innovation strategy.

4) Truth Social American Icons ETF ($TSIC) ⭐

Focus: well-known U.S. brands and large corporations

Expense ratio: approx. 0.65%

Fund assets: approx. 248,000 USD

Number of holdings: around 54

Largest holdings:

Procter & Gamble ($PG (+2,52 %))

Lowe’s ($LOW) (-0,37 %)

Altria Group ($MO) (+2,04 %)

Classification:

The fund invests in established U.S. corporations that are familiar to many investors. The term “Icons” evokes a positive gut feeling but is not a measurable investment factor. In terms of its composition, the ETF resembles a classic large-cap approach—albeit with significantly higher costs, a very small fund size, and no clear added value compared to existing standard ETFs.

5) Truth Social American Red State REITs ETF ($TSRS) 🏘️

Focus: Real estate companies with a focus on Republican-leaning states

Expense ratio: approx. 0.65%

Fund assets: not transparently disclosed, presumably low

Number of holdings: around 28

Largest holdings:

VICI Properties ($VICI) (+0,73 %)

Broadstone Net Lease ($BNL) (-1,52 %)

NNN REIT ($NNN) (+1,04 %)

Assessment:

Filtering real estate based on political geography is unusual. Economically relevant factors such as rental structure, location quality, or financing terms take a back seat here. The fund is highly concentrated, interest-rate sensitive, and offers no clear advantage over broad REIT ETFs.

General Criticisms ⚠️

Very low assets under management

Several ETFs are in the low six-figure range or below. This is critical for ETFs and increases the risk of wide spreads, low liquidity, and potential fund liquidation.

High costs

All five ETFs charge fees of around 0.65%. This is high, especially since there is no demonstrable outperformance, no track record, and no unique strategy.

Political Narratives Instead of Investment Logic

The funds are heavily politically branded. While this may attract attention, it is no substitute for a sound investment strategy. Political conviction is neither a risk factor nor a driver of returns.

Conclusion

The Truth Social ETFs are less traditional investment products and more of a financial statement. They are clearly aimed at investors who want to reflect their political convictions in their portfolios.

From a rational investment perspective, they currently appear:

• very small
• expensive
• illiquid
• conceptually interchangeable

Or to put it a bit more bluntly:

“America First” is in the ETF’s name, but it’s not really a priority when it comes to the risk-return ratio.

For a seriously structured, long-term portfolio, there are significantly more robust alternatives. As a topic of discussion within the community, however, the funds are certainly entertaining.

What do you think of the ETFs?

Best regards,

Don

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