MrRayG

JPMorgan just dropped an ABSOLUTELY INSANE forecast for AI compute. According to JPMorgan, global AI compute demand is expected to reach roughly 530 GW by 2031, while available supply is projected to reach just 250 GW. That leaves us with a staggering 280 GW shortfall, even after the industry spends hundreds of billions of dollars expanding capacity. We're talking about global AI compute supply potentially QUADRUPLING between 2025 and 2031, yet the shortage is expected to get even WORSE. In fact, JPMorgan estimates the gap between supply and demand could expand from roughly 50 GW today to nearly 280 GW by 2031. And here's why this matters so much. When demand consistently outpaces supply, the companies controlling scarce compute capacity gain enormous pricing power. This is especially important for neoclouds like $NBIS and $CRWV, which are building out GPU infrastructure to serve customers that simply cannot secure enough compute capacity through traditional hyperscalers. If JPMorgan's projections are even remotely accurate, GPU rental pricing could remain stronger for much longer than investors currently expect, supporting higher utilization rates, long term contracts, and potentially stronger returns on deployed infrastructure. But the opportunity extends FAR beyond neoclouds. Companies like $NVDA and $AMD benefit from the continued need for accelerators, memory manufacturers like $MU benefit from increasing demand for high-bandwidth memory, and networking, storage, power, and cooling providers all become increasingly important as the industry attempts to close this gap. And this is where I think the market is making a BIG mistake. Investors are so focused on whether AI companies are spending TOO MUCH money that they're overlooking the possibility that the industry STILL isn't spending enough to satisfy future demand. The real constraint isn't necessarily a lack of customers willing to pay for compute. It's the ability to manufacture enough chips, secure enough electricity, build data centers fast enough, and actually bring that capacity online. And that is EXACTLY why I continue to believe the biggest winners in AI won't necessarily be the companies building the models, but the companies supplying the infrastructure required to run them.