Internal Commentary

The AI Infrastructure Portfolio continues to perform in line with expectations, supported by steady demand across compute, memory, networking, and power segments. Recent results confirm that AI infrastructure spending remains strong, with each holding contributing to different stages of the supply chain that make large-scale AI possible.

NVIDIA remains the clear leader in AI compute, and while competition is increasing, its software ecosystem and ongoing hardware leadership continue to support growth. TSMC and ASML are maintaining solid utilization rates and order backlogs, reflecting continued demand for advanced semiconductors.

Micron has benefited from improving memory pricing and growing HBM demand, both of which have helped restore margins. Broadcom and Arista Networks are seeing healthy demand for networking hardware as data centers upgrade to handle higher AI traffic.

Vertiv and Eaton continue to see strong order growth as data centers expand their power and cooling capacities. Their steady industrial exposure provides stability to balance the higher-volatility semiconductor names.

Overall, the portfolio’s structure appears well positioned for ongoing AI infrastructure investment. Performance is being driven by measurable business demand rather than market speculation, and diversification across technology and industrial components helps manage risk while maintaining exposure to a long-term growth trend.