Key insights
- The author identifies AI infrastructure providers as a strong long-term investment, arguing that their success is tied to overall AI spending growth rather than specific AI model outcomes. Companies like NVIDIA, Palantir, ServiceNow, Intuit, Salesforce, and others are positioned as essential 'picks-and-shovels' for the AI transformation, benefiting from the broad corporate demand for higher productivity and lower costs. This perspective suggests a bullish outlook for these specific technology infrastructure stocks, independent of the uncertainty surrounding AI model winners.
I see everyone is still chasing AI models and less on infrastructures.
I am still buying companies selling the infrastructure.
Companies like NVIDIA, PLTR, NOW, INTU, CRM, CRDO, VRT, AVAV and ACN don't need to win the AI race. They win if AI spending keeps growing.
Every Fortune 500 company wants higher productivity, lower costs, and fewer repetitive jobs. These companies are becoming the picks-and-shovels providers for that transformation.
The AI winner is uncertain.
The need for AI infrastructure isn't. Thats why i feel they are the clear winner for long run. I am expecting another 5x-10x in less than 6 years.
That's why I'm buying and holding.