Dear Friends,

We have been covering various elements and market related information for value investment techniques.

In this series, we are going to see the supply and demand with the emerging eco-systems.

The Supply and demand are the fundamental forces that are driving the market.

If there are more sellers than buyers for any stock, the price drops.
If there are more buyers than  the sellers, automatically the price rises.

Therefore, rather than just looking for a stock's price, it is quite crucial to understand the underlying dynamics of it.

👉 Is there the selling pressure easing?
👉 Is the demand rising?

Often, the best opportunities do not appear when the situation is quite obvious to everyone;

They would emerge while the demand is quietly building up.

Success in investing that does not lie in predicting every single move in the market.

But it lies in identifying the situations where the demand strengthens relative to the supply.

Because ultimately, a stock's price is quietly determined not by opinions or predictions.

But entirely by its supply and demand.

Now, we will see this in context of the emerging AI eco-system.

The global demand for AI data centers is rising rapidly now. 

The major companies like Amazon, Microsoft and Google are much eager to expand their AI capacity globally. However, the necessary physical infrastructure cannot be built at the same pace.

Just because AI data centers require more than just chips.

But with,

• High power supply
• Cooling systems.
• Transformers and grid connections
• Construction and engineering capacity

All of these are essential, but they cannot be created within an overnight.

Consequently, the real bottleneck in the AI ​​world today is not the AI software or AI demand for itself.

It is with the physical infrastructure with the required power, cooling, construction and the grid connectivity.

There is a vital lesson here for investors as well. 

Many people associate AI are solely with software or chip companies alone.

However, the companies that poise for the next phase of growth might well be the those to provide the infrastructure essential to the AI ​​ecosystem.

After all, the greatest opportunities arise where demand surges rapidly but supply cannot keep the pace.

Have this in mind and think on this!

Have a happy time in the markets!