The Next AI Trade... In Europe

Just under two months ago, when the market was still hotly debating whether the current AI rally has the capacity to keep plowing higher, we suggested that while the AI trade probably still has room to run (it did judging by where NVDA closed on Friday), there is a far more convex trade, one which capitalizes on the electricity supply needed to keep all those AI data centers running. We dubbed this the "Next AI trade", and a few weeks later, after we reported that everyone was suddenly piling into said trade, it hit an all time high, outperforming not only the Mag7, but also both the "broader AI" and "Data Center equipment" baskets.

We believe that this "Next AI trade", also dubbed "Power up America", has lots of room to run, but we would be remiss if we didn't point out several tangential and potentially just as profitable trades that have emerged since.