Transcript:
Caroline Woods:
All right. So if you have to be selective, what should you be adding to your portfolio? What should you be taking out?
Kevin Mahn:
Sure. I think you want to continue to follow the money—aerospace and defense spending, and infrastructure spending. And I know we continue to talk about the AI revolution, but I’m more focused on the infrastructure buildouts and all the money that’s being spent there—on data centers, on cooling solutions, on power solutions.
Some names that I think coincide with that: a name like IIS Holdings—most haven’t heard of the company. They provide electrical connectivity to data centers. Their stock’s up almost 97% year-to-date.
How about a company like Comfort Systems, ticker symbol FIX. They’re in the industrial sector. What the heck do they have to do with the AI revolution? But they supply cooling solutions to warehouses, distribution centers, and data centers. Their stock is up over 100%.
And then finally, Caroline, two names that are reporting earnings this week: ASML, which reported earnings earlier today, and Taiwan Semiconductor, which reports tomorrow. I think those are other great ways to play the AI revolution without just going back and forth with Nvidia, which in my view at least, still sits at the hub of the AI ecosystem.
Caroline Woods:
I was going to say—notably missing from your list is Nvidia. You can’t count out Nvidia. You still would be putting money to work in Nvidia?
Kevin Mahn:
Absolutely. Absolutely. And I think Nvidia is playing the long game with respect to AI. They used to be just in chips. Now what we found in last quarter is that 88% of their revenues came not from chips but from data center revenue. So they’re diversifying in terms of their revenue base going forward. I think that’s very smart. But there are other opportunities beyond Nvidia and beyond chips—and those other names are just a couple of examples.
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