Rafiki @DahliaEdge - Twitter Profile

6 months ago

A follow-up on one of the points I made in yesterday’s post regarding rotation & breadth expansion👇 Market breadth isn’t expanding by accident—it’s expanding because the largest tech companies in the world are writing stimulus checks to the rest of the market ✍️💵💵💵 $500B+ in AI capex doesn’t stop at chips. It forces distribution into the real economy. Here’s how that spend is broadening the market: 1. Semis, memory & networking (first wave) $NVDA $AMD $CSCO $MU $SNDK $TSM This was the narrow phase. Well understood. Largely priced. 2. Power & grid infrastructure $ETN $HUBB $EMR $GEV AI is power-dense and reliability-first. Grid spend isn’t optional—it’s structural. 3. Industrials & construction (the transmission mechanism) $PWR $FLR $CAT $J $KBR Hyperscalers don’t build data centers themselves. Industrials turn capex into physical reality. 4. Cooling, HVAC & controls $VRT $JCI $HON $TT Higher power density → higher thermal complexity. This scales with AI intensity. 5. Materials & inputs (breadth accelerators) $LIN $APD $NUE $MMM $FCX Steel, copper, gases, films, labor—this is where participation spreads beyond “AI.” This is why breadth is expanding: the Dow $DJI rocketed over 50,000 & the semi sector $SMH only finished the week down 0.45% even as “tech got crushed.” Capex at this scale acts like private-sector fiscal stimulus. When spending broadens, leadership broadens. All the volatility we’ve experienced these last few months is the market coming to terms with the fact that the Mag 7—which paved the way to these new ATHs—probably aren’t going to be the ones leading the next leg higher as the market waits to see if their big bets actually pay off. That’s how narrow tech stories become broad markets.

TheBronxViking's tweet photo. A follow-up on one of the points I made in yesterday’s post regarding rotation & breadth expansion👇

Market breadth isn’t expanding by accident—it’s expanding because the largest tech companies in the world are writing stimulus checks to the rest of the market ✍️💵💵💵

$500B+ in AI capex doesn’t stop at chips. It forces distribution into the real economy.

Here’s how that spend is broadening the market:

1. Semis, memory & networking (first wave) $NVDA $AMD $CSCO $MU $SNDK $TSM This was the narrow phase.
Well understood. Largely priced.

2. Power & grid infrastructure $ETN $HUBB $EMR $GEV AI is power-dense and reliability-first.
Grid spend isn’t optional—it’s structural.

3. Industrials & construction (the transmission mechanism) $PWR $FLR $CAT $J $KBR Hyperscalers don’t build data centers themselves. Industrials turn capex into physical reality.

4. Cooling, HVAC & controls $VRT $JCI $HON $TT Higher power density → higher thermal complexity. This scales with AI intensity.

5. Materials & inputs (breadth accelerators) $LIN $APD $NUE $MMM $FCX Steel, copper, gases, films, labor—this is where participation spreads beyond “AI.”

This is why breadth is expanding: the Dow $DJI rocketed over 50,000 & the semi sector $SMH only finished the week down 0.45% even as “tech got crushed.”

Capex at this scale acts like private-sector fiscal stimulus.

When spending broadens, leadership broadens.

All the volatility we’ve experienced these last few months is the market coming to terms with the fact that the Mag 7—which paved the way to these new ATHs—probably aren’t going to be the ones leading the next leg higher as the market waits to see if their big bets actually pay off.

That’s how narrow tech stories become broad markets.

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DahliaEdge retweeted

Colin

@colin_gladman

7 months ago

Another moron on the internet who would rather do the TINIEST amount of research instead firing off a useless fact. When your liabilities drastically exceed your assets you are BROKE. Also why he committed suicide.

colin_gladman's tweet photo. Another moron on the internet who would rather do the TINIEST amount of research instead firing off a useless fact.

When your liabilities drastically exceed your assets you are BROKE.

Also why he committed suicide. https://t.co/bqoh3ZhICE

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Rafiki

@DahliaEdge

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