Invest in companies building core AI infrastructure (GPUs, energy, data centers) or those developing enterprise-grade AI agents that deliver measurable, long-duration value, rather than consumer-focused models with short lifespans.
The AI industry is moving from a software-like gross margin business to an infrastructure-heavy, capital-intensive play where sustained R&D investment is a prerequisite for market relevance, not just growth.
The market's recent jitters about AI capex miss the point: demand for increasingly capable AI is outstripping supply.
Prioritize investments in AI infrastructure plays (GPUs, energy, data centers) and companies building model-agnostic agent layers.
The market is underestimating the insatiable demand for increasingly capable AI, which will drive massive compute spend and make infrastructure the true bottleneck and value driver over the next 6-12 months.
Insatiable demand for ever-improving AI capabilities is driving unprecedented compute spend, but the true long-term value shifts from rapidly depreciating models to the underlying, enduring infrastructure and the persistent "memory" of AI agents.
Invest in or build solutions that abstract away the underlying model, focusing on agentic memory and robust infrastructure. This future-proofs against model obsolescence and capitalizes on the growing demand for persistent AI workers.
The market's recent "whiplash" on AI valuations misses the core truth: demand for advanced AI is outstripping supply. Companies that can build or secure infrastructure and develop sticky, agent-based experiences will capture significant value over the next 6-12 months, despite current profitability questions.
The AI industry is reorienting from a model-centric race to an infrastructure and agent-centric value proposition, where delivering persistent, high-value AI workers will outweigh the transient superiority of any single model.
Invest in or build solutions that abstract away the underlying LLM, focusing on agentic memory, workflow integration, and robust infrastructure.
The next 6-12 months will see a continued re-evaluation of AI valuations, favoring companies that demonstrate a clear path to monetizing agentic capabilities and owning critical compute infrastructure, rather than just shipping the "next best model."
The memory aspect of semiconductors today has gotten so extreme. Stuff is so expensive that people are simply not able to make lower-end equipment or like devices anymore. And this is like killing everything, right?
AI chips deliver 65% operating margins, exceeding gaming GPUs' 40%. This incentivizes NVIDIA to prioritize AI data center chips.
Meta's AI investments directly improve its core advertising business, generating substantial revenue from 3.5 billion users. This makes AI capex a straightforward investment.
The memory aspect of semiconductors today has gotten so extreme. Stuff is so expensive that people are simply not able to make lower-end equipment or like devices anymore. And this is like killing everything, right?
AI chips make like 65% operating margins and gaming does like 40%. So obviously from a business perspective it doesn't really make sense to put too much effort into GPUs which is kind of sad you know because what happened to the rest of us you know everything is like AI.
Meta's platform of apps has 3.5 billion daily active users, and they make something like I think it's like $200 a year off of each user in advertising, which just goes to show that like for every person in the world, there's a lot of companies that want to sell them something.
The AI era is fundamentally reorienting the semiconductor industry from consumer-driven volume to enterprise-driven performance and specialized memory. This means sustained, massive capital expenditure from hyperscalers will continue to be the primary growth engine.
Invest in companies providing specialized memory (HBM, high-density NAND) and custom silicon solutions for AI workloads. These components are the bottlenecks and profit centers for hyperscalers.
The AI infrastructure buildout is far from over. Expect continued, accelerating investment in compute and memory through 2027 and beyond, creating a "rising tide" for the entire semiconductor supply chain.
AI's insatiable demand for compute and memory is fundamentally re-prioritizing semiconductor manufacturing, shifting capacity and R&D from consumer products to high-margin data center components. This creates a new economic reality where memory is the bottleneck and a strategic asset.
Invest in companies positioned to supply high-performance memory (HBM, advanced DRAM, NAND) or those hyperscalers with clear, high-margin internal monetization paths for their AI capex (e.g., advertising-driven models).
The AI infrastructure buildout is far from over, with hyperscalers projecting continued, accelerating capex into 2027 and beyond. This sustained investment will keep memory prices elevated and drive innovation in optical interconnects and custom silicon, creating both challenges for consumers and immense opportunities for strategic investors and builders.
The digitization of finance is accelerating, with institutional capital now actively seeking onchain yield and efficiency. This is creating a competitive pressure cooker for traditional banks, while opening vast opportunities for nimble DeFi protocols.
Focus on protocols building robust RWA infrastructure and those providing deep liquidity for tokenized treasuries. These are the picks and shovels for the coming institutional capital wave.
The fight for stablecoin yield and institutional adoption will define the next 6-12 months. Position yourself to capitalize on the inevitable flow of capital from TradFi to transparent, yield-bearing onchain assets, even if it's just a fraction of the total.
Explore DeFi protocols in the N7 index (Morpho, Frax, Aave, etc.) for early exposure to institutional capital flows and RWA looping opportunities.
Experiment with AI agents to automate content creation, research, and even software development, drastically cutting operational costs.
The financial system is bifurcating into a "Neo Finance" layer where tokenized real-world assets are integrated with DeFi primitives, and an "AI-augmented" layer where autonomous agents supercharge individual and small team productivity.
Bittensor is transitioning from a purely experimental decentralized AI network to a performance-driven marketplace, demanding real-world utility and robust economic models from its subnets.
Builders launching subnets must secure initial TAO liquidity and a clear, executable product roadmap from day one to navigate the competitive landscape and achieve emission.
The network's continuous adaptation, from chain buys to MEV mitigation, signals a commitment to long-term stability and value.
Bitcoin, once digital gold, is now frontier tech, vulnerable to broader tech sell-offs.
Reallocate capital towards crypto assets benefiting from regulatory clarity and innovation: stablecoins, tokenized assets, privacy, prediction markets, perpetual futures.
Bitcoin's short-term narrative is challenged, but its long-term tech thesis holds.
Real-time data platforms are supplanting traditional economic reporting, forcing investors to re-evaluate their information sources, while AI's capital expenditure is creating a bifurcation between infrastructure providers and speculative model companies.
Prioritize investments in blockchain infrastructure and stablecoin-centric payment solutions that cater to the emerging agentic economy, and leverage real-time data for a competitive information advantage.
The convergence of real-time data, AI agents, and blockchain rails will fundamentally alter market dynamics and value capture over the next 6-12 months, rewarding those who understand the shift from centralized, lagging systems to decentralized, optimized ones.
The Macro Shift: AI is fundamentally reshaping corporate IT spending, driving a strategic pivot from external SaaS subscriptions to internal development, which will consolidate profits within mega-cap tech and pressure traditional software vendors.
The Tactical Edge: Identify and invest in vertically integrated tech giants that can leverage AI for internal cost savings and new product development, while selectively shorting asset-heavy, midstream, or non-essential SaaS providers during strength.
The Bottom Line: The current market is a re-evaluation of fundamental value across tech and crypto. Focus on companies with strong internal demand for compute and real-world utility, and understand that crypto's speculative cycles, while volatile, are driven by a unique social dynamic that will persist.
