AI and Energy Infrastructure, Explained Plainly, The Physical Layer

The Physical Layer

AI and Energy Infrastructure, Explained Plainly

A journal on the physical constraints behind the AI buildout: power, grid connection, data centres, cooling and the supply chains that gate them. Written to be understood by anyone.

Equity Bottom-Up

<ul><li>Lumentum makes the tiny lasers that turn data into light, so AI chips can talk to each other across a data centre.</li><li>Those lasers have to be grown on a fragile crystal that only a few factories in the world can work at volume, and demand is running well ahead of supply.</li><li>That is why Nvidia, a chip company, paid $2 billion to make sure Lumentum builds more of them.</li></ul>

Lumentum makes the tiny lasers that turn data into light, so AI chips can talk to each other across a data centre.Those lasers have to be grown on a fragile crystal that only a few factories in the world can work at volume, and demand is running well ahead of supply.That is why Nvidia, a chip company, paid $2 billion to make sure Lumentum builds more of them.

Nvidia paid Lumentum $2 billion for lasers, because silicon cannot make light

Focus on Smaller Cap Value Names, Altay Capital

Altay Capital

Focus on Smaller Cap Value Names

Long time value investor. Long/Short portfolio that’s always net long (between 30-80%). I have extensive experience in the video game industry as I founded a leading media company in the space, which I have since exited after an acquisition. Gaming companies only make up ~15% of my portfolio, but its a sector where I believe I have an edge. A newsletter about value investing! Mostly focus on smaller cap value names that aren't widely covered.

Sanyo Engineering & Construc / Equity Bottom-Up

<ul><li>In late May, Kinden Corp. (1944) announced a takeover of Kodensha (1948) at a massive premium.</li><li>Kodensha was trading around ¥2,500 per share in late 2025, then more than doubled before a Nikkei article came out in January 2026 suggesting that Mitsubishi Electric would sell its 50% stake in the company.</li><li>By then, the stock was trading around ¥6,500. Kinden then announced it would take the company private at ¥11,501 per share. </li></ul>

In late May, Kinden Corp. (1944) announced a takeover of Kodensha (1948) at a massive premium.Kodensha was trading around ¥2,500 per share in late 2025, then more than doubled before a Nikkei article came out in January 2026 suggesting that Mitsubishi Electric would sell its 50% stake in the company.By then, the stock was trading around ¥6,500. Kinden then announced it would take the company private at ¥11,501 per share. 

Two Near Net-Net Japanese Electrical Contractors at ~3.5x EV/EBIT with Industry Tailwinds

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

<ul><li>NCKU in Taiwan achieves breakthrough in angstrom-scale semiconductor precision, potentially revolutionizing the industry.</li><li>Uncertainty surrounds impact of Trump win on green energy, with transition likely to be slower but not impossible.</li><li>Apple introduces new open-source AI models, Kyushu attracts record investments from TSMC, while SK Hynix experiences sales/profit growth. Vietnam partners with Qorvo, Cadence to train 50,000 engineers by 2030.</li></ul>

NCKU in Taiwan achieves breakthrough in angstrom-scale semiconductor precision, potentially revolutionizing the industry.Uncertainty surrounds impact of Trump win on green energy, with transition likely to be slower but not impossible.Apple introduces new open-source AI models, Kyushu attracts record investments from TSMC, while SK Hynix experiences sales/profit growth. Vietnam partners with Qorvo, Cadence to train 50,000 engineers by 2030.

Tech Supply Chain Tracker (26-Jul-2024): NCKU in Taiwan achieves semiconductor precision breakthrough.

Japan

Mitsubishi Electric Corporation develops, manufactures, and markets electronic equipment.  The Company's products include industrial machinery, heavy electric machinery, data communications systems, electronic devices, and consumer electronics.

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Mitsubishi Electric (6503 JP)

Nvidia paid Lumentum $2 billion for lasers, because silicon cannot make light

Lumentum makes the tiny lasers that turn data into light, so AI chips can talk to each other across a data centre. Those lasers have to be grown...

The Physical Layer

Two Near Net-Net Japanese Electrical Contractors at ~3.5x EV/EBIT with Industry Tailwinds

n late May, Kinden Corp. (1944) announced a takeover of Kodensha (1948) at a massive premium. Kodensha was trading around ¥2,500 per share in late...

Altay Capital

Tech Supply Chain Tracker (26-Jul-2024): NCKU in Taiwan achieves semiconductor precision breakthrough.

NCKU makes breakthrough in semiconductor precision, Trump's impact on green energy uncertain, Apple unveils AI models, TSMC attracts record...

Tech Supply Chain Tracker

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