Industrial Picks-and-Shovels Compounders like Amprius, Ouster, Allegro Microsystems (also Nvidia, AMD, ABB etc.)

Amprius is particularly interesting because it has the potential to **reinvest capital at very high returns into a massive TAM**. The business also benefits from a learning curve and **data flywheel**, while demand is supported by something fundamentally necessary: energy. On top of that Amprius sits at the intersection of several **powerful trends**, including the rapid growth of drones and other energy-intensive applications

This raises a broader question- which other small companies have a similar setup?

One example I see is Allegro Microsystems (ALGM). The key secular trends here are industrial automation and humanoid robots. Like Amprius, ALGM has a substantial reinvestment runway - if the number of robots increases dramatically, there is significant room to deploy capital into a large and growing market. The difference is that ALGM already has a business model with proven unit economics; the main question is when industrial demand begins to accelerate..

In that sense, both Amprius and ALGM are essentially picks-and-shovels businesses positioned to benefit from potentially very large technological shifts.

**What other similar companies that are well positioned to benefit from future secular trends can you think of? I think the mindset here is clear we need proven business model/unit economics before anything else. Small/mid cap only**