The Hardware Rotation
Copper demand to grow 8x by 2050...
Hardware is up +155% in five years—beating the S&P 500, QQQ, and gold.
Since COVID, it’s outpaced software.
Chipmakers, copper miners, and memory giants are leading. Moats are forming in energy, manufacturing, and infrastructure.
AI’s future isn’t just digital—it’s forged in silicon, metal, and power. Hardware is in a macro bull market vs software (see chart below):
Note: The author(s) owns BTC and options positions in ETH (disclaimer).
Key Report Insights:
Hardware’s Lead: HWI has outpaced major indices since 2003; tariff dips may be smart entry points.
Copper’s Mispricing: Copper powers AI, yet trades like a cyclical—markets haven’t priced in structural demand.
Industrial Race: Geopolitics is driving Western re-shoring, rewiring global supply chains.
Memory Bottleneck: AI's constraint is shifting from compute to memory—Micron and SK Hynix may lead.
Investment Edge: A copper-memory-compute basket captures the physical rails of AI’s next wave.
1. From Software To Silicon:
A decade ago, the edge was software. Today, it’s silicon.
The Computer Hardware Index (HWI) is up +155% over five years, outpacing QQQ (+109%), S&P 500 (+84%), and even gold (+98%), despite recent tariff-driven pullbacks.
Capital is rotating into the physical layer of compute. Hardware is no longer backend—it’s the driver.
As AI demand compounds, the upside may lie in owning the pipes and picks. The next wave of outsized returns could come from the machines, not just the models.
Source: TradingView
📈 Stay ahead—join 250+ paid readers across the Exponential, Distilled brand.
Unlock full breakdowns, asymmetric setups, and institutional-grade research below.
 | A guest post by
|