The next AI trade might be hiding in something much less exciting: transformers. ⚡

Kentzw
09-28

The market has spent years chasing GPUs, networking and data-centre operators.

But building a huge AI data centre requires something much more basic — electrical infrastructure.

Transformers, switchgear, substations and grid connections can take years to plan and install. That creates an interesting second-order investment theme: companies that manufacture the equipment needed to actually deliver electricity to these massive facilities.

Names like GE Vernova, Eaton, ABB and Schneider Electric give investors different ways to access that infrastructure spending.

What I find interesting is that this isn’t entirely dependent on which AI model wins.

Whether Nvidia, AMD, Google, Microsoft or Amazon captures more AI demand, the data centres still need electricity.

That could make the “picks and shovels behind the power” an underappreciated part of the AI infrastructure story.

The big question:

Does the next major AI investment opportunity sit one step behind the AI companies themselves? 👇

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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