The past few weeks have been particularly challenging for AI infrastructure stocks, with the sector correcting by more than 20%. While the magnitude of the sell-off has been significant, we have witnessed similar corrections several times over the past three years, and each has ultimately been followed by a sharp recovery. We believe this episode…
Artificial intelligence is reshaping the software industry, but much of the economic value is accruing outside traditional enterprise software. Investors have increasingly focused on the infrastructure required to build and run AI systems, including semiconductors, cloud platforms and data center capacity, while much of the software layer itself, from foundation models to developer tools, is…
Last week, Tesla, Sunrun and Renew Home announced a landmark partnership to create what could become the largest virtual power plant (VPP) in the U.S. By combining Tesla Powerwall home batteries, Sunrun’s residential solar and storage systems, and millions of smart devices managed by Renew Home, the companies aim to aggregate more than 16 GW of flexible…
While Micron’s earnings and guidance last night were undeniably impressive—with revenue growth accelerating sharply in the +300% and gross margins approaching 90%—the most important takeaway, in our view, was the company’s expanded disclosure around its Strategic Customer Agreements (SCAs). These long-term agreements between memory manufacturers and hyperscalers, AI chip designers, and other large customers have…
According to Bloomberg, China is considering a plan to invest approximately $295 billion over the next five years in data center infrastructure to accelerate AI development. Beijing reportedly intends for state-owned telecom operators to build and operate much of this capacity while sourcing at least 80% of the underlying technology—including AI accelerators—from domestic suppliers. If…
Even if there’s been a lot of excitement around AI in the last years, there’s been a very limited number of high-profile IPOs in the U.S. given that the market is dominated by a handful of players in computing (Microsoft, Amazon…), models/software (OpenAI, Anthropic…) and computing hardware (Nvidia, AMD). News that Cerebras, a US-based AI…
For years, AI infrastructure was simple: GPUs ruled, and everything else followed. CPUs, memory, and networking existed, but as background plumbing, not strategy. That perception is changing. A structural shift is bringing CPUs back to the center. Not as legacy hardware from a pre-AI era, but as the foundation for the next wave: reinforcement learning…
Memory stocks such as SK Hynix, Micron Technology and SanDisk—among the best performers in the AI space over the past 12 months—came under pressure yesterday following reports that Google is preparing to roll out its TurboQuant data compression algorithm for AI inference. TurboQuant enables more efficient storage of data in the key-value (KV) cache—the memory…
OpenClaw, an AI agent builder, has surged in popularity in China thanks to its ability to autonomously perform tasks on behalf of users—organizing and responding to emails, drafting work reports, and preparing slide decks. Its versatility has prompted many Chinese tech companies to offer OpenClaw services on their cloud platforms, while local governments and enterprises…
For decades, copper carried the internet on its back. It threaded through server racks, snapped into Ethernet ports, linked chips to switches, and did it all with quiet dependability. Electrons racing through metal powered backplanes, patch cords, and direct-attach cables. Copper was cheap, familiar, and fast enough. Then generative AI changed the definition of “fast…