AI Investment Supercycle: How to Invest in the $3-4tn Race
What is AI, why are we entering a Golden Age of AI, why investments are accelerating, all the companies exposed to this megatrend and how to play this once in a generation opportunity
We are living through one of the most profound technological revolutions in history, fueled by the explosive rise of artificial intelligence. What started as isolated breakthroughs has now erupted into a full-blown arms race, with the largest, most powerful, and best-capitalized companies the world has ever seen pouring hundreds of billions into AI infrastructure. This battle isn’t just about who has the best models, it's about raw computing power, energy, data, and the physical infrastructure behind it all.
As investors ask when hyperscaler capex will moderate, I believe that this historical AI infrastructure build will total in the trillions of dollars over the next few years, truly a once in a lifetime investment opportunity.
The real winners will be the companies that build and power this new world. I’ve already published deep dives into 16 of the top beneficiaries of the AI boom (all of which you can find on the “AI & Data Centers” tab on my newsletter), and there’s a lot more coming over the next weeks and months.
Just some numbers to give you a sense of what I am talking about:
Hyperscalers are on track to spend a staggering $400bn of AI capex for 2025 (including Oracle), up 53% yoy.
AI is accelerating with the total AI spend through 2030 now expected at $3-4tn!
Another critical data point, on a $50-$65bn 1GW data center, Jensen says they are able to capture $35bn of that. AI spend continue to grow, and Nvidia's technology continues to improve at a rapid pace.
This implies that capex will continue to accelerate through 2027 at a minimum. For reference, near term global capex run rates are at $600bn plus (up 2x yoy).
Reasoning, Agentic AI and a move to AGI/Super Intelligence is driving the need for more compute (per Nvidia, up 100x to 1,000x).
Another data point is Mark Zuckerberg, Meta’s CEO, who has indicated that Meta will invest at least $600bn on data centers and infrastructure in the US by 2028.
In this write up, I dive into this megatrend, how we got here and how to invest (beyond Nvidia and the headlines).
Twice a week, I will release deep dives into stocks and sectors that fit into the three themes that I see winning in this age of tariffs and deglobalization: resilience, sovereignty & reshoring, China. I will then deep dive into the opportunities in the AI data center value chain.
Take advantage of this once in a generation opportunity to build long term wealth by investing in great stocks that will deliver returns for your portfolio for years to come.
Table of content
What is AI and why are we entering a Golden Age of AI
What are data centers and what is the value chain enabling this AI
Why are we in the biggest investment cycle in history and why its not a bubble
Why the AI capex cycle is still accelerating
How to play this historical opportunity?
My favorite picks to get exposure this AI data center megatrend
