AI Infrastructure ex-Magnificent-Seven 25
Twenty-five picks-and-shovels names behind the AI buildout, with Nvidia, Microsoft, Alphabet, Amazon, Meta, Apple and Tesla deliberately excluded.
Why it won
The dominant AI ETFs are effectively a leveraged bet on Nvidia plus the hyperscalers. This thesis isolates the second-layer infrastructure: power, cooling, optical, foundry equipment, memory, networking, EDA software and grid. It is the most-pitched custom prompt on the platform and the one that holds up best in stress tests against an equal-weight benchmark.
The prompt
AI infrastructure index but exclude NVIDIA, Microsoft, Alphabet, Amazon, Meta, Apple and Tesla. Include power, cooling, foundry equipment, memory, optical networking, EDA and grid. 25 names, equal-weighted with quarterly rebalance.
Methodology
- Universe: global developed-market listed companies generating disclosed AI infrastructure revenue or backlog.
- Exclusion: NVIDIA, Microsoft, Alphabet, Amazon, Meta, Apple and Tesla.
- Inclusion verticals: power generation and transmission, data-centre cooling, lithography and foundry equipment, HBM memory, optical networking, EDA software, server ODM, hyperscale REIT.
- Equal weight at 4% per name, drift tolerated between rebalances.
- Quarterly rebalance, names dropped if AI revenue contribution falls below 15%.
Backtest
Figures are illustrative for editorial purposes. Past performance does not guarantee future results.
Holdings
| Ticker | Name | Weight |
|---|---|---|
| ASML | ASML Holding | 4.0% |
| TSM | Taiwan Semiconductor Manufacturing | 4.0% |
| AVGO | Broadcom | 4.0% |
| AMD | Advanced Micro Devices | 4.0% |
| ARM | Arm Holdings | 4.0% |
| MU | Micron Technology | 4.0% |
| SNPS | Synopsys | 4.0% |
| CDNS | Cadence Design Systems | 4.0% |
| AMAT | Applied Materials | 4.0% |
| LRCX | Lam Research | 4.0% |
| KLAC | KLA Corporation | 4.0% |
| ANET | Arista Networks | 4.0% |
| CRDO | Credo Technology | 4.0% |
| VRT | Vertiv Holdings | 4.0% |
| ETN | Eaton Corporation | 4.0% |
| PWR | Quanta Services | 4.0% |
| CEG | Constellation Energy | 4.0% |
| VST | Vistra Corp | 4.0% |
| EQIX | Equinix | 4.0% |
| DLR | Digital Realty Trust | 4.0% |
| SMCI | Super Micro Computer | 4.0% |
| ALAB | Astera Labs | 4.0% |
| COHR | Coherent Corp | 4.0% |
| GEV | GE Vernova | 4.0% |
| 8035.T | Tokyo Electron | 4.0% |
Risks
- Pure-play AI infrastructure is highly correlated to hyperscale capex cycles and will overshoot in both directions.
- Equal weight gives small caps like Credo and Astera the same weight as ASML, which raises idiosyncratic risk.
- Power and cooling exposure introduces regulated utility risk that does not always behave like the underlying AI theme.
Earlier weeks
Thirty global compounders with ROIC above 20% and zero exposure to the Magnificent Seven, on a 5-year backtest that quietly clears SPY.
Twenty defence and aerospace names with no exposure to cluster munitions, nuclear delivery systems or anti-personnel mines, weighted by 3-year backlog growth.
The 25-year dividend-growth list with tobacco names dropped and the savings redistributed by FCF coverage, not yield.
