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AI Data Center Buildout

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The AI Data Center Buildout is driven by increasing demand for GPUs, which necessitates expanded infrastructure including power, cooling, and connectivity solutions. This creates opportunities across multiple supply-chain layers, with potential mispricing in less obvious sectors.

Current Priced Wave

3

Next Alpha Wave

4

Time Horizon

quarters

Wave 3 companies are gaining attention as connectivity becomes a bottleneck. Wave 4 offers opportunities in construction and real estate, which are less explored but crucial for expansion.

Wave 1: GPU Demand

Awareness: fully_priced | Alpha: minimal

Companies directly involved in the production and distribution of GPUs.

NVDA - NVIDIA Corporation

GPU Manufacturer

Leading supplier of GPUs for AI data centers.

Mispricing angle: Market is aware of NVIDIA's dominance, but may underestimate the sustained demand growth from AI applications.

Mispricing: -

Analysts: -

90d vs 200d: -

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AMD - Advanced Micro Devices, Inc.

GPU Manufacturer

Competes with NVIDIA in the GPU space, providing alternatives for data centers.

Mispricing angle: Market may not fully appreciate AMD's potential to capture market share from NVIDIA.

Mispricing: -

Analysts: -

90d vs 200d: -

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INTC - Intel Corporation

GPU and CPU Manufacturer

Expanding into GPU market with new products targeting data centers.

Mispricing angle: Market may overlook Intel's strategic pivot towards AI-focused GPUs.

Mispricing: -

Analysts: -

90d vs 200d: -

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Wave 2: Power and Cooling Solutions

Awareness: partially_known | Alpha: moderate

Companies providing essential infrastructure for data center operations.

APC - American Power Conversion

Power Solutions Provider

Supplies uninterruptible power supplies (UPS) and power management systems.

Mispricing angle: Market may not fully account for increased demand from AI-specific data centers.

Mispricing: -

Analysts: -

90d vs 200d: -

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CARR - Carrier Global Corporation

Cooling Solutions Provider

Provides HVAC systems critical for data center cooling.

Mispricing angle: Market may underestimate the specialized cooling needs of AI data centers.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

EMR - Emerson Electric Co.

Infrastructure Solutions Provider

Offers power and cooling solutions tailored for data centers.

Mispricing angle: Market might not fully recognize Emerson's strategic focus on AI-driven infrastructure.

Mispricing: -

Analysts: -

90d vs 200d: -

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Wave 3: Connectivity and Networking

Awareness: emerging | Alpha: significant

Companies enhancing data center connectivity and network efficiency.

CSCO - Cisco Systems, Inc.

Networking Equipment Provider

Supplies networking hardware essential for data center operations.

Mispricing angle: Market may not fully appreciate the increased bandwidth demands from AI workloads.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

ANET - Arista Networks, Inc.

Cloud Networking Solutions Provider

Focuses on high-performance networking solutions for data centers.

Mispricing angle: Market might not fully value Arista's role in optimizing AI data center networks.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

JNPR - Juniper Networks, Inc.

Networking Solutions Provider

Offers networking solutions that enhance data center connectivity.

Mispricing angle: Market may overlook Juniper's potential to innovate in AI-driven network solutions.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

Wave 4: Construction and Real Estate

Awareness: undiscovered | Alpha: high

Companies involved in the physical buildout of data centers.

PLD - Prologis, Inc.

Industrial Real Estate Provider

Develops and leases properties suitable for data center construction.

Mispricing angle: Market may not fully recognize the shift towards data center-specific real estate demand.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

JLL - Jones Lang LaSalle Incorporated

Real Estate Services

Provides real estate services and solutions for data center construction.

Mispricing angle: Market might underestimate JLL's role in facilitating AI data center expansions.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

CBRE - CBRE Group, Inc.

Commercial Real Estate Services

Offers services for the acquisition and development of data center properties.

Mispricing angle: Market may overlook CBRE's strategic focus on AI-driven real estate solutions.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

Wave 5: Second-Order Effects

Awareness: contrarian | Alpha: high

Companies benefiting indirectly from the AI data center buildout.

SRE - Sempra Energy

Energy Provider

Supplies energy to data centers, benefiting from increased power demand.

Mispricing angle: Market may not fully appreciate the long-term energy demand from AI data centers.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

XYL - Xylem Inc.

Water Technology Provider

Provides water management solutions critical for cooling systems.

Mispricing angle: Market might not recognize the importance of water management in AI data center cooling.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

ACN - Accenture plc

Consulting Services

Offers consulting services for optimizing data center operations.

Mispricing angle: Market may underestimate Accenture's role in advising on AI data center efficiencies.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

Monitoring Triggers

  • Increased AI adoption rates
  • Regulatory changes affecting data center construction
  • Technological advancements in cooling and power efficiency

Invalidation Triggers

  • Significant slowdown in AI technology adoption
  • Major technological disruption reducing data center demand
  • Regulatory barriers to data center expansion