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AI Data Center Buildout

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The AI Data Center Buildout is driven by the increasing demand for GPU capabilities, necessitating advancements in power, cooling, connectivity, and construction, with second-order effects impacting a range of industries.

Current Priced Wave

3

Next Alpha Wave

4

Time Horizon

quarters

Wave 3 companies are gaining recognition, but the construction and infrastructure wave (Wave 4) remains less explored, offering significant alpha opportunities.

Wave 1: GPU Demand

Awareness: fully_priced | Alpha: minimal

Companies directly involved in the production and supply of GPUs, which are essential for AI data centers.

NVDA - NVIDIA Corporation

GPU Manufacturer

Leading supplier of GPUs for AI applications.

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

Mispricing: -

Analysts: -

90d vs 200d: -

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AMD - Advanced Micro Devices, Inc.

GPU Manufacturer

Competes with NVIDIA in the GPU market.

Mispricing angle: Market may not fully appreciate AMD's potential to capture market share from NVIDIA in AI-specific GPUs.

Mispricing: -

Analysts: -

90d vs 200d: -

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INTC - Intel Corporation

GPU and CPU Manufacturer

Expanding into AI-focused GPUs.

Mispricing angle: Market may overlook Intel's strategic pivot towards AI GPUs and its potential impact.

Mispricing: -

Analysts: -

90d vs 200d: -

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Wave 2: Power and Cooling

Awareness: partially_known | Alpha: moderate

Companies providing power and cooling solutions essential for the operation of AI data centers.

APD - Air Products and Chemicals, Inc.

Industrial Gases Supplier

Provides cooling solutions for data centers.

Mispricing angle: Market may not fully recognize the growing demand for advanced cooling solutions in AI data centers.

Mispricing: -

Analysts: -

90d vs 200d: -

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EMR - Emerson Electric Co.

Cooling and Power Systems

Offers power and cooling systems for data centers.

Mispricing angle: Market might underestimate Emerson's role in the AI data center cooling market.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

CARR - Carrier Global Corporation

HVAC Solutions

Provides HVAC solutions critical for data center operations.

Mispricing angle: Market may not fully appreciate Carrier's potential growth from AI data center demand.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

Wave 3: Connectivity

Awareness: emerging | Alpha: significant

Companies involved in providing connectivity solutions for AI data centers.

CSCO - Cisco Systems, Inc.

Networking Equipment

Supplies networking hardware for data centers.

Mispricing angle: Market may not fully appreciate the increased demand for high-speed networking in AI data centers.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

ANET - Arista Networks, Inc.

Cloud Networking Solutions

Provides cloud networking solutions for data centers.

Mispricing angle: Market might underestimate Arista's growth potential in AI-driven data center networking.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

JNPR - Juniper Networks, Inc.

Network Infrastructure

Offers network infrastructure solutions for data centers.

Mispricing angle: Market may overlook Juniper's strategic positioning in AI data center connectivity.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

Wave 4: Construction and Infrastructure

Awareness: undiscovered | Alpha: high

Companies involved in the construction and infrastructure development of AI data centers.

J - Jacobs Solutions Inc.

Engineering and Construction

Involved in the construction of data centers.

Mispricing angle: Market may not fully recognize Jacobs' expertise in specialized data center construction.

Mispricing: -

Analysts: -

90d vs 200d: -

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FLR - Fluor Corporation

Engineering and Construction

Provides construction services for large-scale data centers.

Mispricing angle: Market might underestimate Fluor's potential in AI data center projects.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

ACM - AECOM

Infrastructure Development

Engaged in infrastructure development for data centers.

Mispricing angle: Market may overlook AECOM's strategic role in AI data center infrastructure.

Mispricing: -

Analysts: -

90d vs 200d: -

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Wave 5: Second-Order Effects

Awareness: contrarian | Alpha: high

Companies benefiting from second-order effects of AI data center buildout, such as software and cybersecurity.

ZS - Zscaler, Inc.

Cybersecurity

Provides cybersecurity solutions for data centers.

Mispricing angle: Market may not fully appreciate the increased cybersecurity needs of AI data centers.

Mispricing: -

Analysts: -

90d vs 200d: -

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SNOW - Snowflake Inc.

Data Warehousing

Offers data warehousing solutions that benefit from AI data center growth.

Mispricing angle: Market might underestimate Snowflake's growth potential from AI-driven data analytics.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

DDOG - Datadog, Inc.

Monitoring and Analytics

Provides monitoring solutions for data center operations.

Mispricing angle: Market may overlook Datadog's strategic positioning in AI data center monitoring.

Mispricing: -

Analysts: -

90d vs 200d: -

Open Ticker

Monitoring Triggers

  • Increase in AI data center construction projects
  • Advancements in cooling and power efficiency technologies
  • Regulatory changes impacting data center operations

Invalidation Triggers

  • Significant reduction in AI investment
  • Technological breakthroughs reducing data center dependency
  • Major economic downturn affecting capital expenditure