Logic → Memory → Power

Are power semiconductors the next AI play? Compute chips are driving greatest wealth generation in human history, recently dragging memory stocks along for the ride. Based on recent surge of power semi stocks, investors may be realizing their importance to AI growth. Most of these stocks have been in a downturn from exposure to slowing EV transition. Oil market uncertainty is now reversing EV growth slump. European EV sales are +50% this month and Asia Pacific region is seeing highest EV interest ever. Maybe this better explains recent power chip runs? AI growth is being constrained by thermal, mechanical and power limits. NVDA is forcing AI power architecture into higher voltages which requires GaN and SiC semiconductors. Their wide bandgap abilities are also required for many advanced defense applications. Geopolitical battles are raging over these materials and technologies. I have long positions in most western SiC players, preferring low PS valuations, high marketshare and strong manufacturing capabilities. Also interested in ideas for pure GaN plays. Investing for electrification exposure but won't complain if we get pulled into AI fray.