The recent market dynamics reveal that not all AI stocks are equal, particularly following Google’s Gemini announcement. While discussions center around the OpenAI and Google complexes, a promising opportunity lies in the broader AI value chain, often overlooked by investors. The OpenAI Complex, including Nvidia and Oracle, faces challenges like mounting debt and concentration risks. Conversely, the Google Complex, featuring Google and Broadcom, is gaining traction with its TPU technology but still trails Nvidia in versatility. However, it’s the value chain—companies like Credo, Astera Labs, and Marvell—that quietly thrive. These suppliers demonstrate robust growth, showcasing resilience regardless of who dominates the AI platform landscape. The emphasis should shift from whether OpenAI or Google will prevail, to recognizing the infrastructure providers poised for success, offering a more favorable risk/reward profile amid market volatility. As the AI sector evolves, opportunities in the value chain may yield significant returns.
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