AI Super Cycle: The "Last Easy Trade" Revealed

Summary

One seasoned trader who's seen his portfolio grow tenfold after a 70% dip, identifies the current AI wave as the "last easy trade" of the AI super cycle. He emphasizes that while the first wave was about AI's 'thinking' capability and the second about infrastructure, the current and final wave is about companies leveraging AI for efficiency. He advises focusing on companies with high costs, like those in customer service, logistics, or with many white-collar repetitive tasks, as they will benefit most from AI integration. His top conviction is Amazon, which he believes will benefit across four key areas: AWS infrastructure, its AI chip development, retail logistics, and advertising. He also highlights the importance of independent thinking and deep due diligence, often spending 50-80 hours on a single thesis, to avoid emotional, irrational market decisions. For average investors, he stresses the critical need to be invested in the market, viewing this AI-driven economic transformation as a paradigm shift that will redefine business and assets.