Author lays out a 2026 allocation to AI infrastructure bottleneck plays across Indium Phosphide substrates, plug-ready power/neocloud assets, silicon photonics, and the agentic transaction economy.
AXTI — LONG AXT controls scarce InP substrates required for AI optics, with a functional duopoly and China-heavy refining. The author argues that if China restricts exports, substrate prices go parabolic, making AXTI a geopolitical hedge.
If the geopolitical spigot tightens, the price of these substrates goes parabolic.
IREN — LONG Iris Energy spent years building grid connections and now owns plug-ready gigawatts, a scarce asset as hyperscalers face 3-5 year interconnection queues. It is retrofitting for high-density liquid cooling and selling speed-to-market to desperate hyperscalers. Author allocates it as a core power broker for the 2026 AI bottleneck.
They are retrofitting for high-density liquid cooling. They are selling "speed-to-market" to desperate hyperscalers.
WULF — LONG TeraWulf is a zero-carbon play powered by nuclear and hydro, which is critical for tech giants with net-zero mandates training AI models. It owns grid connections as a neocloud landlord, and the author includes it as a core power broker.
The zero-carbon play. Nuclear/Hydro powered. This is critical for tech giants with Net-Zero mandates who need to train dirty models cleanly.
POET — LONG POET's optical interposer uses tiny slivers of InP on silicon, using 90% less scarce indium phosphide than full wafers. As 800G and 1.6T speeds become standard, the author expects its architecture to be the path of least resistance, with high execution risk and massive upside if adopted.
As 800G and 1.6T speeds become standard, their architecture becomes the path of least resistance.
COIN — LONG The author labels Coinbase as the proxy for the Agentic/USDC economy and allocates it to growth/alpha. The setup is AI agents buying data 24/7 with microtransactions that credit cards cannot handle.
The proxy for the Agentic/USDC economy