Consider Amazon (AMZN) a core holding for AI exposure, as its AWS cloud services are essential for training and running powerful models like Anthropic's Claude. For a more direct AI infrastructure investment, look at Bloom Energy (BE), which provides the critical power systems for AI data centers. High conviction in BE suggests buying significant dips as long as its role in powering AI remains intact. A contrarian opportunity exists in Canadian energy company TransAlta Corp (TAC), which is expected to be a primary beneficiary of new AI data centers. Its recent drop to around $12 per share is viewed as a buying opportunity, as the negative factors are considered temporary while the long-term AI thesis is unchanged.

Bloom Energy (BE)

• This is discussed as one of the hosts' biggest and most successful trades, on its way to becoming their #1 position.
• The core investment thesis is that Bloom Energy provides the power infrastructure for AI data centers, making it a crucial play on the AI boom that is less obvious than chipmakers. It's described as part of the "boring stuff underneath the chips."
• The host highlights a recent, successful trade where he doubled down on his position after the stock was "cut in half," dropping from ~$140 to $77.
  • The drop was caused by market fear surrounding one of its biggest customers, Oracle (ORCL).
  • The host's thesis on Bloom had not changed, so he saw the dip as a major buying opportunity.
  • The stock subsequently doubled back to $146 in just over three weeks, validating the high-conviction move.

Takeaways

• Sentiment: Very Bullish.
• Insight: The discussion presents Bloom Energy as a core AI infrastructure play that is still a top holding. The story of doubling down on a price drop illustrates the strategy of buying high-conviction stocks when the market panics, as long as the underlying investment thesis remains intact. The hosts believe there is still a "tremendous amount of opportunity" in this name.

TransAlta Corp (TAC)

• TransAlta Corp is an energy company in Alberta, Canada, which the hosts believe is positioned to be a primary beneficiary of AI data centers moving to the region.
• The stock has underperformed recently, dropping from over $18 to around $12 a share.
• Reasons for the recent weakness are cited as temporary and not related to the core AI thesis:
  • An abnormally warm winter in Canada led to weak energy prices.
  • A planned CEO transition created some market uncertainty.
  • An expected AI data center deal was delayed by a quarter.
• Because the long-term AI thesis has not changed, one of the hosts decided to "practically double down" on his position during the show.

Takeaways

• Sentiment: Bullish on a turnaround.
• Insight: TAC is presented as a contrarian opportunity. The stock has been hit by short-term negative news, but the hosts believe the fundamental, long-term AI-related thesis is still valid. This is another example of their strategy to buy into weakness when conviction is high.

Natobo (Nitto Boseki)

• This Japanese company is presented as a "real AI trade in 2026" — an obscure but critical player deep in the AI supply chain.
• What it does: Natobo manufactures a specialty glass cloth used in advanced semiconductor packages and AI server boards.
• Competitive Advantage (Moat):
  • It has a near-monopoly, controlling almost 90% of the global market for the specific low thermal expansion glass cloth needed for next-generation AI chips.
  • For some advanced packages, it is the only global supplier.
  • Its material is critical for preventing warping as chips get bigger and hotter, a major bottleneck for companies like NVIDIA. The host noted that NVIDIA's CEO recently visited this small company, highlighting its strategic importance.
  • Natobo has proprietary technology to create ultra-smooth glass that also solves the problem of delamination (layers not binding together).
• Risk Factors Mentioned:
  • Competition: Other companies are trying to develop similar materials, but it will take them years to prove their product's reliability and scale up production.
  • Conservative Pricing: As a Japanese company, Natobo may be too "polite" to raise prices as aggressively as an American company would, potentially limiting its ability to fully monetize its dominant position.
  • Accessibility: This is a difficult stock for US investors to buy. The hosts could not find a reliable US-listed ADR and discussed the need to open a global account and convert currency to Japanese Yen, which involves fees and complexity.

Takeaways

• Sentiment: Medium Conviction Bullish. The idea is compelling, but the stock has already run up, and it's difficult to trade.
• Insight: This is a "picks and shovels" investment idea focused on a critical, non-obvious supplier in the AI ecosystem. The investment requires more effort due to its foreign listing, which could be a barrier for many retail investors. Investors should be cautious about illiquid ADRs and understand the risks and costs of foreign stock trading. The host was attempting to buy the stock during the podcast.

Amazon (AMZN)

• Amazon is presented as a key beneficiary of the next wave of AI, specifically the rise of "agentic AI" and powerful models like Anthropic's Claude.
• The Connection:
  • AWS is Anthropic's primary cloud provider and training partner.
  • Anthropic uses Amazon's custom Tranium chips to train and run its models.
  • The widespread adoption of new products like Claude Co-Work is expected to drive significant spending and revenue for AWS.
• The hosts view Amazon as a "silent beast" in the AI world that has not fully "run hard" on the AI theme yet, suggesting it has more room to grow compared to other tech giants.
• The ultimate catalyst will be when AI-driven cost savings and productivity gains start showing up in companies' earnings reports. The hosts believe Amazon will be the biggest beneficiary of this trend.

Takeaways

• Sentiment: Very Bullish.
• Insight: While not a new name, Amazon is framed as a primary and somewhat underappreciated way to invest in the growth of leading AI models like Anthropic's Claude. The thesis is that as these AI companies succeed, a significant portion of their revenue will flow directly to AWS. This makes AMZN a core holding for exposure to the entire AI ecosystem's expansion.

Sphere Entertainment (SPHR)

• The host recounted a "mind-blowing" experience seeing a concert at the Sphere in Las Vegas, stating it exceeded his already high expectations.
• He believes the company has "cracked the code on experiential entertainment" and that this is the "beginning of something really big."
• Despite the stock being up over 60% in the last three months, the host, who had previously exited his position, is now strongly considering getting back into the stock based on his firsthand experience.

Takeaways

• Sentiment: Bullish.
• Insight: This is an investment idea based on direct, personal experience with the product. The host's conviction was renewed after seeing the quality and potential of the Sphere experience, suggesting the market may still be underestimating its long-term value as a new entertainment platform.