How a valuation/concentration trigger reroutes fund capital along the AI value chain
AI capex scales; capital flows into four chain tiers; the designer tier gates at high multiple, then reroutes capital to equipment, foundry and platforms.
AI capex scales
fund's AI allocation · Q2'26 investor letter
AI exposure
concentrated
Equipment
KLA · LRCX · ASML
tools precede fab
Foundry
TSM
makes leading-edge
Designer
NVDA
richest multiple
Platforms
GOOGL · META
consume silicon
tools
wafers
GPUs
add · Q1'26
+ SMH ETF
raise · Q1'26
TSM
cut · Q1'26
cleared Q2'26
raise · Q1'26
alphabet
gate
trigger
position large · multiple high
designer multiple & concentration
pooled
AI exposure kept
rotated within the chain
lower valuation · capacity tie