A Logical Approach to Playing AI

AI is just another iteration of Web 2.0. We will continue, as a species, to develop technologies that increases productivity, proving the genetic resources remain viable. If you’re attempting to play AI via software applications, you’re barking up the wrong tree. Think of it like the internet and the apps are simply websites. It’s far too early to see which apps will win, since nearly all companies are deploying AI technology into their workflow.

Instead, focus on the infrastructure which makes it all possible. The obvious play is $NVDA with 75% share of the AI chip market. But there are other, not so obvious plays.

Chip design: $CDNS, $SNPS
Database/Server: $AMZN, $SMCI, $ALAB, $MSFT, $MDB, $ORCL
Foundries: Samsung, $TSM, $AMKR
Database chips: $AMD
Services: $ACN
Chips: $NVDA, $MU, $ARM, $QCOM, $INTC
Security: $PLTR

And then there is the wide pastiche of smaller plays that can pop 10x or collapse by 100%. But if you’re wanting an allocation into AI now, I would advise legging in over the next 12 months with quarterly allocations in order to avoid poor timing, considering the recent run.

It’s akin to a gold rush and where the money is most frequently made is via the vendors of picks and shovels, rather than the prospectors.