RISING TIDES
Observations from the IMC Research Process

The AI Trade is Gaining Fresh Momentum

 

The AI and industrials trade is gaining renewed traction, particularly in the US.

  • Infrastructure and hardware is the backbone supporting AI growth. Stocks tied to data centers and AI compute like $ORCL, $NVDA, $MU, and $KLAC are seeing strong momentum. Even small caps like $STRL are breaking out.
  • Hyperscalers leading the charge. Tech giants have steadily been increasing their capital expenditure to enhance AI infrastructure, with a new focus on AI inference and robotics. McKinsey says we’ll need a whopping $5.2T in data center investment by 2030 just to feed AI demand.
  • Ripple effects will spread to construction, utilities, semis, real estate, and more. From copper to cooling systems, this buildout touches everything. Utilities scaling up power generation, real estate reshaping around high-density data hubs, semiconductor and thermal systems manufacturers innovating rapidly – this surge is catalyzing a structural shift across energy, construction, logistics, and beyond.

This report is provided for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. IMC or its clients may hold positions in securities mentioned; the mention of specific companies does not imply endorsement or a recommendation. Past trends do not guarantee future results.