Comprehensive Investment Opportunities in the Era of AI

The National Day holiday these days has exposed me to quite a few news articles and comments related to AI, deepening my understanding of the significance and impact of the AI era.

I remember writing in a previous article that my earlier understanding of AI was quite lacking. However, I have since realized that whenever I hear or see the latest developments in the AI field, I still find my understanding of this area to be quite insufficient.

The so-called "lack" translates to a very practical level where I occasionally discover that AI has also changed the XX field, and I never expected that the XX field would have huge opportunities for at least the next five years.

Seeing these opportunities broadens my perspective beyond just well-known companies like NVIDIA; not only does my vision expand, but my mindset also becomes much more relaxed.

During the National Day holiday, I came across the following news:

• Europe is starting to seriously address its gap in the AI field compared to the United States and China.

Over the past 30 years, Europe has almost missed all new technologies and revolutions: the internet, mobile internet, and the crypto ecosystem, all of which have fallen behind its former rival, the United States, and even China.

Perhaps the Russia-Ukraine war has awakened Europe, or perhaps the tremendous changes brought by AI have shocked Europe; now Europe is finally starting to take action.

In fact, China and the U.S. have long recognized that AI is a war that cannot be lost, and both countries began investing in the AI field early on. Now Europe is finally joining the fray.

If we say that in the past 30 years, Europe’s investment in those revolutions was negligible compared to China and the U.S., the situation has now turned 180 degrees.

In the future, in the new era opened by AI, all the world's most important economies will begin to invest heavily in all areas related to AI, including infrastructure, materials, and applications.

Specifically for our country, if past infrastructure was real estate, future infrastructure is likely to be all related to AI.

The same goes for the U.S. and Europe.

The world's most important economies are synchronously launching such large-scale new infrastructure, which hasn't happened since World War II.

• AMD has given its stock to OpenAI, with the condition that OpenAI truly utilizes its chips and builds an ecosystem similar to NVIDIA's CUDA.

For OpenAI, this is a good solution to avoid "single points of failure," and for AMD, it is a clever way to rapidly build an application ecosystem.

The significant meaning of this event lies not only in the cooperation between the two giants but also in the potential to open a new era of artificial intelligence where different companies collaborate and connect, ultimately leading to a flourishing landscape.

If AMD can collaborate with OpenAI, can other chip companies collaborate with other large models? Can future new hardware companies collaborate with leading new applications?

Following this line of thought to find potential partners opens up a vast realm of possibilities.

• HBM memory has recently seen a collective price increase.

I usually pay little attention to the memory industry.

This time, my interest in this industry was sparked by hearing that due to the large-scale construction of data centers, HBM (High Bandwidth Memory) has begun to experience a supply-demand imbalance, leading to a collective price increase.

I have been paying attention to the impact of AI on surrounding industries. Earlier, I focused on industries directly driven by AI applications, such as cloud computing and nuclear energy.

Now, the impact of AI applications has begun to affect specific components like memory. This is certainly not the only affected component; I believe that if we delve into the component sector, we can identify a long list of potential companies and investment opportunities.

• Copper and other non-ferrous metals have started to rise significantly.

In the past, large non-ferrous metals like copper were primarily influenced by the real estate and infrastructure sectors.

In recent years, with the comprehensive downturn of the domestic real estate industry, I have rarely heard or seen articles discussing the prospects and potential of these non-ferrous metal industries.

However, now, with AI applications driving the demand for data centers and energy supply, the demand for copper has begun to show a supply-demand imbalance. Additionally, recent sporadic issues with global copper mining companies have further exacerbated the supply shortage. Under these conditions, the demand for copper is expected to see considerable growth in the future.

The above news includes both macro and micro perspectives, and some industries I have hardly paid attention to in the past. Regardless of their nature, without exception, a large number of industries are being endowed with new meanings, new potentials, and new spaces from both vertical and horizontal axes by the new era opened by AI.

The space nurtured within this is truly vast.

From an investment perspective alone, every industry we are in will be disrupted and reshaped by AI. This also means that each of us should be able to find significant investment opportunities in the AI era within our familiar industries and fields. We can become pioneers in investment in a particular area.

Finding such opportunities, investing in such companies, and holding them for the long term based on fundamentals, I believe that in ten years, we will see returns that will astonish even ourselves.