AI play isn't just GPUs. It's everything physically related to computers

To give give you a real world scenario on how AI agents massively increase compute demands, imagine a financial professional asking an AI agent to generate a financial model of a stock based on real time data.

Here's what the AI actually needs to do:

* AI uses a cloud server to search and scrap the internet for data relevant for this company - CPUs
* Server runs the data scraping every hour and stores the data - CPUs and storage
* AI writes scripts for CPUs to format and clean gathered data - CPUs
* Use a frontier AI model to find insights into the data - GPUs
* AI builds a website dashboard to show all the data and host it on a server - CPUs

As you can see, not only does this whole task require GPUs to inference an AI model, but CPUs and storage are heavily used. Internet traffic is also increased. This is why the shortage won't just be in GPUs. It will be in CPUs, storage, RAM, networking as well.

This isn't just some fictional task. This is absolutely being used in every single financial company today.

Now multiply this process by soon to be billions of AI agents doing everything from finance, marketing, sales, operations, to writing software, etc.

The companies who benefit most from this will be the companies physically responsible for making chips and infrastructure. These are the layer 1 companies:

TSMC, Micron, Samsung, SK Hynix, Intel, Sandisk, ASML, Seagate, etc and their physical suppliers.

The layer 2 companies will also benefit as well but their growth will be capped by a real physical shortage. They have to bid for wafers, memory, storage. This will limit their margins and growth potential. These companies keep saying they can't get enough chips to fulfill their demand. These companies include:

AMD, Nvidia, Google, Broadcom, Apple, Qualcomm, Arm, Amazon, etc.

Since late 2025, the layer 1s have gone hyperbolic. The layer 2s are mostly stuck. My prediction is that this isn't going to change much until 2028 when new fabs come online. However, even then, it likely won't be enough since AI is on an exponential trajectory but physical world can't scale that fast.