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Capital Power Corporation (CPX $62.31)
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Celestica Inc. (CLS $356.00)
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5N Plus Inc. (VNP $30.85)
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Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A $189.03)
Q: Hello Peter and Team,
I am looking at turning over a portion of my portfolio and rotating into AI infrastructure. With the growth we're seeing increased power consumption, micro data centers, advanced cooling, specialized power distribution, and a supply shortfall are all going to be very relevant in the coming years with the AI capacity rising so fast.
My questions;
1. Has there been a market sector specifically dedicated to AI? Or is it just grouped into IT?
2. I know you mentioned TransAlta Corp in your recent "Best Stock Ideas. What other companies do you think we should be looking at moving forward?
3. Are you looking to have more focus on this sector for the Model Portfolios and if so, which companies are you looking at for growth and for income?
Appreciate all you do
gm
ps,... Thank you for 5N Plus, Kraken & Tantalus
I am looking at turning over a portion of my portfolio and rotating into AI infrastructure. With the growth we're seeing increased power consumption, micro data centers, advanced cooling, specialized power distribution, and a supply shortfall are all going to be very relevant in the coming years with the AI capacity rising so fast.
My questions;
1. Has there been a market sector specifically dedicated to AI? Or is it just grouped into IT?
2. I know you mentioned TransAlta Corp in your recent "Best Stock Ideas. What other companies do you think we should be looking at moving forward?
3. Are you looking to have more focus on this sector for the Model Portfolios and if so, which companies are you looking at for growth and for income?
Appreciate all you do
gm
ps,... Thank you for 5N Plus, Kraken & Tantalus
5i Research Answer:
1- AI names tend to fall in either the Technology sector or Industrials.
2 - For better or worse, the options available in Canada for direct AI exposure are on the low side. CLS, CPX (less direct), VNP (higher risk), and HPS would be some of the primary 'AI' names.
3 - There is already some AI exposure in the models. We wouldn't want them to be a 'bet' on any single theme or sector but certainly taking advantage of opportunities as they arise makes sense.