The Great AI Irony - David Cahn's Substack
dcahn.substack.com · 723 words · saved by 1 readers
CapEx bottleneck companies are capturing stock appreciation, but in the long-run, the app layer will capture the most value
“We’re in the vertical ascent phase” is a phrase you hear often in the Valley right now. But it’s not the vertical takeoff of capabilities people are talking about — it’s the vertical takeoff of stock prices! The AI bottleneck trade has become the talk of the town this year, as surging demand for AI has run headfirst into a supply chain that had not sufficiently scaled to meet it. The “Year of Delays” is turning into the “Year of Bottlenecks.” The mouth watering profits of commodity providers — from HVAC makers to memory manufacturers to engine makers — has investors salivating. And it has…
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