Data center build-out infrastructure play
The guest argued that investors should position in data center infrastructure plays for the next two to two and a half years before shifting to revenue-generating operators.
The argument
The speaker noted that they recently added starter positions in Applied Digital and Vertiv to capture the physical build-out phase. They argued this infrastructure construction thesis has a defined multi-year window, after which the investment model must transition to the hyperscalers and owners who will generate the actual AI revenues.
The thesis, stress-tested
✓ What validates it
- ✓Continued capital expenditure growth guidance from major hyperscalers
- ✓Successful deployment and power-up of new physical data center facilities
▸ Risks discussed
- ▸Sharp near-term run-ups make finding attractive entry points difficult
- ▸The infrastructure build-out phase has a limited shelf life before needing to pivot
Hear it yourself
"One was called applied technologies, APLD, and another was called Vertiv VRT. These are both directly used in the build out of data centers. So part of our portfolio we're positioning for this continued construction of data centers. That construction thesis is going to that's infrastructure, basically."
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