James Van Geelen on the Next Phase of the AI Buildout – Odd Lots

James Van Geelen on the Next Phase of the AI Buildout – Odd Lots — Transcript

Market views

Bullish

POWER— Power generation is the critical bottleneck for AI infrastructure with 7-year lead times for quality turbines, creating massive opportunity for companies like GE Vernova and Caterpillar providing natural gas turbines for data centers
STX— Storage semiconductors have been overlooked despite exponentially growing demand from video-based AI models requiring massive storage capacity
WDC— Western Digital positioned to benefit from overlooked storage opportunity as video AI models drive exponential storage demand
CAT— Caterpillar's Solar Turbines division providing critical power generation equipment for data centers with immediate deployment capability
INDUSTRIAL— Traditional industrial companies benefit from AI buildout while maintaining defensive characteristics through core businesses, offering better risk/reward than pure-play AI names
SIEMENS— Siemens Energy positioned as multinational OEM capable of handling unprecedented scale of data center construction
GEV— GE Vernova stock up 85% since April, providing critical turbines for data center power generation
UNITREE— Chinese robotics company with vertically integrated manufacturing and data-gathering strategy, selling humanoid robots for less than a used Honda Civic
HVAC— HVAC equipment manufacturers benefiting from massive cooling requirements and specialized anti-corrosion insulation needs at data center construction sites

Bearish

PRIVATE— Private credit companies face asymmetric risk with limited upside but unlimited downside from circular AI financing, recommended as hedge against AI infrastructure longs

Not investment advice.