2025 August Idea: Our Pick for the AI Infrastructure Supercycle
One great idea each month
This month, we’re featuring a company producing an essential, high-performance component that is a critical enabler of the artificial intelligence revolution. After navigating a severe industry downturn in 2023, this company is now in the early innings of what we believe will be a historic, AI-driven upcycle. The market recovery is happening, the technology is indispensable, and the path to earnings growth is clear.
The company recently raised its guidance, signaling strong pricing power. Yet, we think the market is underappreciating the magnitude and duration of this “supercycle”. This is a business with a strengthening technological moat and offers a way to invest in the AI boom at a valuation that doesn’t fully reflect its future earnings power.