The AI hardware sector is surging — up +69.6% YTD, led by Hynix (+141%) while NVIDIA (+35.6%) lags.
Capital is rotating upstream into memory and fabrication suppliers, with partnerships like Hynix–OpenAI signaling the next wave.
Below, we unpack the next leg of the AI trade— and the three OpenAI proxies in our portfolio outpacing NVDA.
Source: Generative Value
Key Report Insights:
Memory Leads: Hynix +140% YTD, powering sector gains on soaring AI demand.
Rotation In Play: NVDA +35% as capital shifts to higher-leverage suppliers.
Pure-Play Edge: Focused players capture far greater upside than diversified peers.
1. Hardware: Growing Beyond NVDA
A. Our Public Portfolio:
Our public portfolio is up 31% absolute and 24% vs. BTC since July 15.
A key driver of this alpha is our AI hardware exposure, built on 3 positions that comprise +30% of the portfolio allocation.
The core formula behind our positions is simple: AI sub-sector leadership + a direct narrative tie to OpenAI.
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