Time for a quick update on my three ScaleLimits wikifolios. The very strong spring was followed by a pretty sharp correction. In particular, many stocks in the AI infrastructure sector came under pressure at the same time—regardless of whether the companies were reporting good or bad operational news.
That was quite painful at times. At the same time, I wanted to avoid weeding out good companies amid such sector-wide weakness just because their stock prices were falling. Especially with Sterling Infra $STRL (+5,43 %) , I have to stay the course.
Meanwhile, the picture looks brighter again. For several weeks now, all three wikifolios have been showing a clear upward trend:
🟢 NextLimits: +46.7% since launch at the end of March / +18.8% in the last month
🟢 TechLimits: +27.5% since launch in late March / +16.6% in the last month
🟢 CoreLimits: +32.8% since launch in early April / +12.8% in the last month
Of course, no one knows for sure whether this means the correction is finally over. However, the previous low seems to have been overcome for now. Still, I haven’t been completely idle. I’ve used the time to take another critical look at the portfolios’ composition.
For NextLimits , I’ve slightly reduced my positions in Soitec and Bloom Energy, which had grown quite large. Intuitive Machines and Ultra Clean Holdings have been sold. New additions include Preformed Line Products $PLPC (+4,44 %) and Semtech $SMTC (+14,01 %).
In TechLimits , I have replaced Harmonic Drive Systems with Semtech $SMTC (+14,01 %) . This allows me to reduce a holding whose performance has not convinced me for some time, while simultaneously strengthening the high-speed connectivity/signal integrity theme for AI infrastructures.
CoreLimits , on the other hand, remains unchanged. I currently see no reason to make any changes here.
The basic idea hasn’t changed anyway: ScaleLimits doesn’t simply invest in “AI stocks,” but in companies that benefit from physical and technological bottlenecks in the next stages of expansion—from memory, semiconductor manufacturing, and packaging, through photonics and networking, to power supply, networks, and cooling.
However, the past few months have also shown that those who invest specifically in bottlenecks experience volatility sometimes comes right along with it. 😅
ScaleLimits:
- NextLimits: emerging bottlenecks
- TechLimits: current bottlenecks
- CoreLimits: Stability
