I kept looking at the AI stock rally and started wondering if the bigger opportunity is actually sitting one layer behind the companies everyone is watching.
Nvidia CEO Jensen Huang recently said he expects Nvidia to sell roughly twice as many chips next year as this year. That tells me the AI spending cycle is still expanding, but it also creates another question: what has to exist around those chips for all of this compute to actually work?
Power is becoming one of the clearest bottlenecks.
AI data centers need huge amounts of electricity, cooling, networking and transmission infrastructure. A recent study estimated that electricity use from AI-focused data centers could reach 239–295 TWh by 2030, around 1% of global electricity demand.
That changes how I look at the trade.
Instead of only asking whether AI stocks can keep going higher, I’m watching the infrastructure underneath them: power generation, grid equipment, cooling, optical networking, data-center construction and energy storage.
There is already evidence of this bottleneck showing up. Texas recently paused new state data-center permits while its grid impact is audited, with hundreds of gigawatts of projects waiting for grid access.
So for me, the interesting question isn't simply “Are AI stocks overvalued?”
It is:
If AI demand keeps growing, where does the money have to flow next?
#AIStocksWhatNext
Nvidia CEO Jensen Huang recently said he expects Nvidia to sell roughly twice as many chips next year as this year. That tells me the AI spending cycle is still expanding, but it also creates another question: what has to exist around those chips for all of this compute to actually work?
Power is becoming one of the clearest bottlenecks.
AI data centers need huge amounts of electricity, cooling, networking and transmission infrastructure. A recent study estimated that electricity use from AI-focused data centers could reach 239–295 TWh by 2030, around 1% of global electricity demand.
That changes how I look at the trade.
Instead of only asking whether AI stocks can keep going higher, I’m watching the infrastructure underneath them: power generation, grid equipment, cooling, optical networking, data-center construction and energy storage.
There is already evidence of this bottleneck showing up. Texas recently paused new state data-center permits while its grid impact is audited, with hundreds of gigawatts of projects waiting for grid access.
So for me, the interesting question isn't simply “Are AI stocks overvalued?”
It is:
If AI demand keeps growing, where does the money have to flow next?
#AIStocksWhatNext
