Compute demand underpriced amid supply mismatch
The market is underpricing the nonlinear demand for AI compute, making semiconductor and hardware providers highly attractive relative to software.
The argument
The speaker argued that the transition from simple chatbots to agentic AI harnesses is creating a nonlinear surge in token and compute demand. With GPU availability for next-gen chips collapsing to zero, compute has become a national security imperative that will be funded regardless of broader economic cycles.
The thesis, stress-tested
✓ What validates it
- ✓SMH breaking out to new all-time highs
- ✓Continued throttling of public access to advanced AI models due to compute constraints
▸ Risks discussed
- ▸Capital expenditure fatigue from hyperscalers funding the infrastructure
- ▸Potential supply chain disruptions affecting semiconductor manufacturing
Hear it yourself
"This is slide 47. There's a lot of interesting things happening. This is the IGV software ETF. This looks like death. It is it's breaking, you know, the daily this the daily, the weekly, and the monthly moving averages, and it's breaking all three. So this is how, you know, my framework is AI is actually eating software's lunch. It is Mhmm. It's terrible and not terrible. It's it could be massively, you know, twenty first century industrial boom. Right? But that's gotta come from somewhere, and it's coming from, you know, IGV."
09:30
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE