AI Infrastructure Investments: Trends and ETF Opportunities

AI infrastructure investments are crucial as big tech companies aggressively fund data centers and essential resources for future growth.

### Navigating AI Investments: Insights from Tiger ETF
The sentiment around AI investments is shifting, especially after recent tech earnings reports, with a focus now on **underlying stocks essential for AI infrastructure**. Big tech companies are increasing their capital expenditures for data centers and AI-related investments, with plans to **exceed $1 trillion in the future**. The CEOs of these companies emphasize the importance of **taking on more risk and making larger investments in AI** to stay competitive in a **winner-takes-all structure**.

### The Impact of Commercial Activities on AI Investments
Big tech companies are prioritizing **risk-taking and continued investment in AI**, with a focus on **not falling behind**. Investing through portfolios like ETFs is recommended, while paying attention to companies that are **genuinely profiting from AI**. The AI infrastructure, including hardware, cloud services, and data centers, is crucial for its effective functioning, with **significant investments** and a **consistent upward trend in demand**.

### The Growing Demand for Data Centers
Data centers can be categorized into three main areas: **infrastructure**, **power supply**, and **raw materials**. The demand for data centers has been **consistently increasing** for the past 20 years, with a renewed boost from **generative AI**. Investments in U.S. data centers are rising, vacancy rates are decreasing, and rental prices are going up, indicating a **growing need for data center infrastructure**.

### The Power Demand of AI and Its Impact
AI's increasing demand is leading to a **substantial rise in electricity consumption**, with Google's AI search operating at **6.9 watts**. Nvidia's semiconductors show a **dramatic increase in power consumption** as AI applications grow, with data centers' electricity usage projected to rise from **1% in 2022 to nearly 10% by 2030**. The shift towards **on-device AI** and the importance of a **stable power supply** are highlighted, with key companies in the power infrastructure sector playing a **crucial role in meeting the demand**.

### The Growing Importance of Nuclear Energy and Raw Materials
Nuclear energy is gaining attention due to the increasing number of reactors worldwide, with **over 160 new ones planned in the next 15 years**. This growth is driving up the demand for uranium and copper, both **crucial raw materials**. To manage the volatility of these investments, bundling them together in a portfolio, such as the upcoming **Tiger Global AI Infrastructure Active ETF**, is recommended for a **diversified approach**.

### The Role of Active Management in AI Infrastructure Investment
Active management of ETFs offers **more flexibility** than passive products, despite some inconvenience during rebalancing. The Mirae Asset AI Infrastructure Index serves as the benchmark, aiming to **outperform its components** without actively replacing them. The current portfolio shows even investments across data center power raw materials, with a focus on **diversification and well-known companies**, highlighting the importance of **long-term AI investment and infrastructure**.

### Navigating AI Investments: Insights on ETFs and Infrastructure
* 🤖  Lim Jong-wook, the Tiger ETF team leader, discusses the **recent volatility in AI investments**, particularly following earnings reports from major tech companies like Nvidia.
* 📉  Investors are becoming cautious about their holdings in big tech, especially as these companies contemplate **slowing down their investments in data centers and GPUs** due to market fluctuations.
* 💰  It's crucial to focus on the underlying stocks that support AI infrastructure, as investments in big tech companies are projected to **exceed $1 trillion**, with capital expenditures from major players like Alphabet, Amazon, Meta, and Microsoft **surpassing $100 billion this year alone**.
* ⚡  Data centers, power supply, and raw materials, such as uranium and copper, are essential components of AI infrastructure, with the **demand for data centers increasing significantly** due to generative AI.
* 🏗️  The Tiger Global AI Infrastructure Active ETF, launching on September 10th, will invest **across the entire AI infrastructure value chain**, providing a **diversified approach to managing volatility** in this dynamic market.
* 🌍  Active management of the ETF allows for flexibility in stock selection, aiming to **outperform the Mirae Asset AI Infrastructure Index** while focusing on companies that are **generating revenue and making substantial investments in AI-related infrastructure**.
* 🔍  As AI continues to evolve, identifying companies that contribute to the necessary infrastructure will be vital for investors, emphasizing the **importance of a long-term perspective** in the AI investment landscape.

"AI 거품론 불안해요" 진짜 돈 버는 AI 기업들에 투자하는 법 / 미래에셋자산운용 TIGER 글로벌AI인프라액티브 ETF

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