AI Infrastructure Boom and Mega IPOs (with Matt Miller, Dani Burger)

Asks how much Nimrit has added to his portfolio of high-bandwidth DRAM producers.

Matt Miller

Nimrit Kang

We have been in some AI-related names for years. It's been hard to keep up with the meteoric rise. SK Hynix up 1000% over the last year.

Asks what to do: keep buying or wait for dips, noting earlier guest said there aren't enough dips.

Dani Burger

Nimrit Kang

We are in the midst of a major infrastructure CapEx boom ($1 trillion). AI earnings growth is 66%, with trickle-down effects boosting other companies by 12%. This is translating into a huge wealth effect for boomers, boosting spending and GDP.

It doesn't feel like it because AI names are dwarfing strength elsewhere.

Asks how much mega IPOs (SpaceX, OpenAI, Anthropic) are driving equity gains.

Matt Miller

Nimrit Kang

The gains we've seen are without these mega IPOs. They will supercharge the AI boom, increasing concentration by 6-7%. But many already have exposure through private investments. The boundaries between public and private are more nebulous now.

Almost 47 funds have exposure to SpaceX already, before it hits the market.

Asks if SpaceX's governance issues (85% voting control by Musk, low float) give him pause as an asset manager.

Dani Burger

Nimrit Kang

On SpaceX, there are major flags around corporate governance and profitability ($20 billion in losses). But the dominant part is the narrative: huge retail following, belief in Musk as a once-in-a-lifetime entrepreneur. That's what people are buying into.

The TAM claim is $28 trillion, but optimistically $6 trillion. At this point, it's a momentum market where fundamentals don't matter to that degree.

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