AI Architects

1Strategy Overview

AI Architects is Stoquity's highest-conviction thematic portfolio, targeting the infrastructure layer of the artificial intelligence revolution. While consumer-facing AI applications compete for market share — and many will fail — the infrastructure companies that supply chips, cloud compute, networking equipment, and data platforms capture value regardless of which end-user models ultimately win.

The portfolio concentrates in 10 names, deliberately choosing depth over breadth because the AI infrastructure market is naturally concentrated. NVIDIA alone holds 90%+ of the data center GPU market. Taiwan Semiconductor manufactures virtually all advanced AI chips. This isn't a diversification play — it's a conviction play on the most important technology shift since the internet.

2Investment Thesis

The AI infrastructure market is projected to grow from $150B in 2024 to over $1 trillion by 2030. This is not speculative — enterprises are already spending at unprecedented rates. NVIDIA's data center revenue grew 217% year-over-year in its most recent quarter. Cloud AI services are growing 50%+ annually. Microsoft's Azure AI revenue exceeded $10B annualized. Google's cloud AI services are the fastest-growing segment in Alphabet.

The thesis is simple: invest in the companies that sell the shovels during the gold rush, not the prospectors. Every AI startup, every enterprise AI initiative, every government AI program needs the same infrastructure. The TAM is massive, the growth is real, and the competitive moats are deep.

3How the Strategy Works

The AI engine evaluates stocks across five custom dimensions layered on top of Stoquity's 24-factor scoring model. Each candidate must pass all five gates before inclusion:

1. AI Revenue Exposure — what percentage of revenue comes from AI-related products or services (minimum 30%) 2. Competitive Position — whether the company has a defensible moat in its layer of the AI stack 3. Growth Trajectory — revenue growth rate and acceleration in AI-specific segments 4. Capital Efficiency — whether the company can scale without proportional capex increases 5. Supply Chain Position — proximity to the bottleneck (currently GPU supply and advanced packaging)

4Risk Metrics

5Current Holdings

6Recent Trades

7Risk Considerations

This is a high-concentration, high-beta portfolio designed for investors with strong risk tolerance and a long time horizon. The strategy accepts higher volatility in exchange for outsized return potential.

Key risks include semiconductor cycle downturns — AI capex spending could pause if enterprise ROI disappoints, though current adoption curves suggest this is unlikely before 2028. Geopolitical risk is material given Taiwan Semiconductor's dominant position in advanced chip manufacturing. Valuation compression remains the most probable near-term risk, as many holdings trade at premium multiples.

The Drawdown Governor monitors portfolio beta daily and will automatically reduce position sizes if the portfolio drawdown exceeds -25%. This risk management layer provides a floor while allowing the portfolio to capture the full upside of the AI infrastructure buildout.

8Who Is This For?

AI Architects is designed for investors who understand technology sector dynamics and can tolerate significant short-term volatility in pursuit of long-term wealth creation. This is not a conservative allocation — it's a high-conviction bet on the most transformative technology shift of our generation.