Sourcery: Why Coatue Follows the Gigawatt — AI, Semiconductors & Market Shifts

The rapid acceleration of artificial intelligence is dismantling traditional technology investment frameworks, shifting the focus from software metrics to physical constraints like power and hardware availability. Jaimin Rangwalla, CIO of Coatue's Public Markets, argues that the current cycle is defined by unprecedented speed, with private entities like OpenAI and SpaceX reaching valuations and revenue scales that dwarf historic IPOs. This shift has transformed power into the "atomic unit of growth," forcing investors to track "gigawatts" and "tokens" rather than traditional sector buckets. Persistent shortages in memory, optical components, and data center capacity create a market divided between "sellers of shortage" who possess pricing power and "buyers of shortage" facing heavy capital expenditures. As AI agents begin to operate with less human supervision, the resulting digital population explosion will drive massive, structural demand for semiconductors, ensuring that fundamental earnings growth outweighs fluctuating market sentiment.