Performance Drivers

The AI Infrastructure Portfolio’s strong returns have been fueled by broad strength across the semiconductor, memory, and data center ecosystem, each benefiting from surging global demand for AI computing power.

1. Semiconductor Leadership

• NVIDIA (NVDA) and TSMC (TSM) have been the backbone of performance, supported by record GPU demand and advanced packaging capacity constraints. Their scale and technology leadership continue to attract hyperscaler and enterprise AI spending.

2. Memory Supercycle

• Micron (MU) has been the portfolio’s top performer, driven by explosive growth in high-bandwidth memory (HBM) pricing and constrained global supply. Its position in the AI hardware value chain has translated into outsized returns.

3. Manufacturing & Equipment Strength

• ASML (ASML) has benefited from increased EUV tool orders as chipmakers race to produce next-generation AI semiconductors. Its monopoly position and long order backlog have ensured stable, compounding growth.

4. Systems & Networking Expansion

• Super Micro Computer (SMCI) and Arista Networks (ANET) delivered strong gains as hyperscalers expanded GPU server clusters and high-speed interconnect networks. Both capitalize directly on the physical scale-up of AI data centers.

5. Power & Cooling Infrastructure Boom

• Vertiv (VRT) and Eaton (ETN) surged alongside rising AI data center energy needs. Liquid cooling, efficient power systems, and grid infrastructure have become critical enablers of AI scalability, turning these industrial names into stealth growth plays.

Overall, performance has been driven by a perfect alignment of capital expenditure trends, technology leadership, and scarcity of critical AI components, reinforcing the strength and balance of the portfolio’s construction.