Dear Reader,
Today I want to talk about a key driver behind the AI revolution, that’s really kind of underappreciated in the market (read: opportunity).
The buildout of AI data centers is triggering a new bull market in a relatively overlooked sector.
Think about what’s happening…
Microchips drive everything, right?
Well, now we have football stadium-sized data centers connecting a bunch of Nvidia GPUs acting as one “superchip” - one giant brain.
But, how do you get all these chips connected? Talking to each other?
You do it with one resource that has become more valuable to AI than oil… than energy itself.
A resource experts show will fall short of demand by a whopping 30% within just a few years.
The good news is, one company has invented a novel way to extract it - similar to how fracking changed oil in the 2000s.
The future of this resource is directly tied to data center buildout…
And demand for the resource itself, a reliable signal of an economy’s health, is showing big upside ahead…
It tells us our economy is stronger than it looks…
That the AI trade/demand for AI is still outrageous…
And that capital spending is going in part to this resource, and that there’s going to be a deficit.
So here we have massive demand meeting too little supply - a recipe for higher prices.
“The Buck Stops Here,”
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Written by Dylan Jovine