We have talked so much about GPUs, AI chips and the big winners of the AI boom.
And understandably so.
But while GPUs get most of the attention, there is a 𝐦𝐮𝐜𝐡 𝐛𝐢𝐠𝐠𝐞𝐫 𝐀𝐈 𝐞𝐜𝐨𝐬𝐲𝐬𝐭𝐞𝐦 𝐪𝐮𝐢𝐞𝐭𝐥𝐲 𝐠𝐫𝐨𝐰𝐢𝐧𝐠 𝐚𝐫𝐨𝐮𝐧𝐝 𝐭𝐡𝐞𝐦.
Because AI doesn't run on GPUs alone.
Someone has to store all that data. Someone has to provide the equipment to make increasingly complex chips. And someone still has to manufacture and package them.
Which brings me to three rather different companies.
𝐒𝐚𝐧𝐝𝐢𝐬𝐤 𝐬𝐭𝐨𝐫𝐞𝐬 𝐢𝐭.
𝐀𝐩𝐩𝐥𝐢𝐞𝐝 𝐌𝐚𝐭𝐞𝐫𝐢𝐚𝐥𝐬 𝐡𝐞𝐥𝐩𝐬 𝐛𝐮𝐢𝐥𝐝 𝐢𝐭.
𝐈𝐧𝐭𝐞𝐥 𝐰𝐚𝐧𝐭𝐬 𝐭𝐨 𝐦𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞 𝐢𝐭.
Same AI boom. Three very different investment stories.
And interestingly, all three have recently become available as 𝐃𝐚𝐢𝐥𝐲 𝐋𝐞𝐯𝐞𝐫𝐚𝐠𝐞 𝐂𝐞𝐫𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐞 (𝐃𝐋𝐂) underlyings on SGX, with both Long and Short exposure.
So for my latest article, “The AI Trade: Long Story, Short Story”, I decided to connect the dots.
What is driving these three stories? What are their charts telling us? And if we have a view, how can traders potentially express it 𝐰𝐡𝐢𝐜𝐡𝐞𝐯𝐞𝐫 𝐰𝐚𝐲 𝐭𝐡𝐞 𝐦𝐚𝐫𝐤𝐞𝐭 𝐦𝐨𝐯𝐞𝐬?
Because a good story does not always mean a good entry price.
And when leverage enters the picture, there is another lesson worth remembering:
𝐓𝐡𝐞 𝐃𝐋𝐂 𝐢𝐬 𝐭𝐡𝐞 𝐭𝐨𝐨𝐥. 𝐓𝐡𝐞 𝐯𝐢𝐞𝐰 𝐬𝐭𝐢𝐥𝐥 𝐡𝐚𝐬 𝐭𝐨 𝐛𝐞 𝐲𝐨𝐮𝐫𝐬.
👉 I unpack the full story here: https://tinyurl.com/AILongStoryShortStory
Perhaps the next chapter of the AI trade isn't about asking what has already gone up.
It's about asking where the money could flow next.
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