AI stocks are running hot. But I’m more interested in what AI spending is creating BEHIND the obvious winners.
I’m bullish on AI long term, but I’m not convinced that buying every AI-labelled stock after a huge run is the smartest way to play the theme.
Nvidia’s latest quarter is a good example of how big the demand has become: revenue reached $96.2B, up 106% YoY, while Data Center revenue hit $89B, up 117%. Nvidia is also forecasting roughly 70% revenue growth for its next fiscal year.
But here’s the part I’m watching more closely: AI needs an enormous physical infrastructure.
More AI means more data centers → more electricity → more grids, transformers, cooling, networking, storage and power infrastructure.
The IEA estimates data-center electricity consumption grew 17% in 2025, while AI-focused data centers grew even faster, at 50%. It also says annual grid investment may need to rise by roughly 50% by 2030 to meet expected demand.
So maybe the next opportunity isn’t just the company selling the AI chip.
Maybe it’s the companies quietly selling the electricity, cooling and infrastructure required to run millions of them.
That’s the AI trade I’m watching next.
Are you still buying the headline AI stocks, or looking at the “picks and shovels” behind the AI boom?
#AIStocksWhatNext
I’m bullish on AI long term, but I’m not convinced that buying every AI-labelled stock after a huge run is the smartest way to play the theme.
Nvidia’s latest quarter is a good example of how big the demand has become: revenue reached $96.2B, up 106% YoY, while Data Center revenue hit $89B, up 117%. Nvidia is also forecasting roughly 70% revenue growth for its next fiscal year.
But here’s the part I’m watching more closely: AI needs an enormous physical infrastructure.
More AI means more data centers → more electricity → more grids, transformers, cooling, networking, storage and power infrastructure.
The IEA estimates data-center electricity consumption grew 17% in 2025, while AI-focused data centers grew even faster, at 50%. It also says annual grid investment may need to rise by roughly 50% by 2030 to meet expected demand.
So maybe the next opportunity isn’t just the company selling the AI chip.
Maybe it’s the companies quietly selling the electricity, cooling and infrastructure required to run millions of them.
That’s the AI trade I’m watching next.
Are you still buying the headline AI stocks, or looking at the “picks and shovels” behind the AI boom?
#AIStocksWhatNext
