Hi YXI friends,

I am introducing a new format for daily notes to expand our equities coverage. Note that we are at the trial stage and may adjust the coverage and frequency over time.

The aim is to provide broader coverage of the AI trade. We examine names across semis, hardware, and infrastructure every Tuesday, and cybersecurity, software, and crypto every Thursday.

While the impact of AI on software and crypto seems negative right now, I believe that over time, the AI application-layer trade will become more obvious and flourish, too.

I’ve picked out these names by market cap in each sector. The market likes to reward the leaders (and that’s why the S&P is so hard to beat). We don’t have a reason to disagree with it at the start. But over time, we could bring in smaller names that appear more promising.

Two things to bear in mind:

1) As we have just started covering these names cold, my read likely improves over time, as I monitor their behaviour.

2) We will look into the company fundamentals over time. This likely improves our understanding of how the market looks at the stock and, therefore, whether our technical projections are too conservative or generous.

DISCLAIMER: This newsletter is intended for educational purposes only. Any information or analysis in this note does not constitute an offer to sell or a solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice, nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

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