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29 Apr 2025

The AI Supercycle™ Report: AI infrastructure, tariff impact, and supercomputer power

The AI Supercycle™ Report: AI infrastructure, tariff impact, and supercomputer power

Key Takeaways:

  • Semiconductor Giants Drive AI Infrastructure: Taiwan Semiconductor Manufacturing Company (TSMC) and Nvidia are making significant strides in chip development and manufacturing, reinforcing their positions as leaders in AI infrastructure.
  • Enterprise AI Adoption Accelerates: IBM’s substantial investment in U.S. manufacturing and technologies underscores the growing importance of AI in enterprise operations.
  • Geopolitical Factors Influence AI Landscape: New tariffs and trade tensions pose challenges to infrastructure development, highlighting the need for strategic planning in AI investments.

Quote of the Week:

“We are proving the efficiency and system-level maturity of delivering the data center as a unit of compute, unlocking rapid adoption of AI-native power and cooling infrastructure as a catalyst for AI at scale.”
— Vertiv, on the Colosseum supercomputer project

Top 5: AI in the Headlines

AI is moving fast—so are the investment opportunities. The AI Supercycle™ Report highlights the key recent developments that AI investors interested in capturing the entire supply chain need to know. The report also includes examples of companies well-positioned to capitalize on these trends, as well as the Chart of the Week.

1. TechSpot: TSMC Unveils Plans for Giant AI Chips to Meet Surging Demand

  • Why It Matters: TSMC introduced its “System on Wafer-X” technology, capable of integrating at least 16 large computing chips, enhancing performance for advanced AI applications. This advancement addresses the growing demand for high-performance AI chips in data centers and other applications.
  • Key Quote: “TSMC projects that chips built with this technology will deliver more than three and a half times the compute performance of today’s leading designs.”
  • Stock Exposure: AIS holds TSMC (TSM), a key player in AI chip manufacturing.

2. DataCenterDynamics: Vertiv, Nvidia, and iGenius Partner on AI Supercomputer ‘Colosseum’

  • Why It Matters: The collaboration aims to deploy “Colosseum,” one of the world’s largest AI supercomputers, enhancing capabilities for regulated industries. This project exemplifies the integration of advanced computing power to meet the complex demands of sectors like finance and healthcare.
  • Key Quote: “We’re demonstrating how modular systems and software-specific infrastructure enable a new era of mission-critical AI.”
  • Stock Exposure: AIS holds Vertiv Holdings (VRT), which generates revenue from AI infrastructure development.

3. The Times: IBM to Invest $150 Billion in U.S. Manufacturing Over Next Five Years

  • Why It Matters: IBM has announced a $150 billion investment in U.S. manufacturing, including $30 billion dedicated to research and development in mainframe and quantum computing. This move aligns with efforts to boost domestic production and technological advancement.
  • Key Quote: “It is the latest example of an American technology group boosting its U.S. investment since Trump’s punitive global tariffs were unveiled.”

4. Investing.com: Is AI Revolution Under Threat from Tariffs?

  • Why It Matters: New tariffs and trade tensions are impacting the AI industry, potentially increasing costs and affecting supply chains critical to AI infrastructure. This development underscores the importance of geopolitical factors in the planning and execution of AI projects.
  • Key Quote: “The market has massively discounted the near-term spending for AI and it is wrong.”

5. CRN: IBM CEO Highlights Strategic Investment in AI and Innovation

  • Why It Matters: IBM’s CEO emphasizes the company’s commitment to leading in AI and innovation through substantial investments in U.S. manufacturing and technology development. This strategic focus positions IBM at the forefront of AI advancements.
  • Key Quote: “The latest news from IBM comes after tech giants such as Nvidia and Apple have said they will invest about $500 billion each in America over the next several years.”

Chart of the Week: AI Supercomputer Power

Closing Insights

The AI Supercycle™ continues to accelerate, driven by advancements in semiconductor technology, strategic investments in infrastructure, and the integration of AI into enterprise operations. Companies like TSMC, Nvidia, IBM, and Vertiv are at the forefront of this transformation, shaping the future of AI across various sectors. This latest news developments—from wafer-scale chip breakthroughs to the deployment of sovereign supercomputers—underscore how physical infrastructure is fast becoming the new battleground for AI leadership.

At VistaShares, we see the AI opportunity extending beyond headline names to the entire ecosystem. The VistaShares Artificial Intelligence Supercycle ETF (AIS) delivers Pure Exposure™ to this transformation, with top holdings driving the charge. As AI reshapes industries, AIS empowers investors to capture the full scope of this megatrend.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (844) 875-2288. Read the prospectus or summary prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

For the VistaShares Artificial Intelligence Supercycle ETF (AIS) top holdings & fund details, please visit: https://www.vistashares.com/etf/ais/#holding

Artificial Intelligence Risk. Issuers engaged in artificial intelligence typically have high research and capital expenditures and, as a result, their profitability can vary widely, if they are profitable at all. The space in which they are engaged is highly competitive and issuers’ products and services may become obsolete very quickly. These companies are heavily dependent on intellectual property rights and may be adversely affected by loss or impairment of those rights.

Equity Market Risk. Common stocks are generally exposed to greater risk than other types of securities, such as preferred stock and debt obligations, because common stockholders generally have inferior rights to receive payment from specific issuers.

Technology Sector Risks. The Fund will invest substantially in companies in the technology sector, and therefore the performance of the Fund could be negatively impacted by events affecting this sector. Market or economic factors impacting technology companies and companies that rely heavily on technological advances could have a significant effect on the value of the Fund’s investments.

Foreign Securities Risk. Investments in securities or other instruments of non-U.S. issuers involve certain risks not involved in domestic investments and may experience more rapid and extreme changes in value than investments in securities of U.S. companies.

Index Strategy Risk. The Fund’s strategy is linked to an Index maintained by the Index Provider that exercises complete control over the Index.

New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have an extensive track record or history on which to base their investment decisions.

Foreside Fund Services, LLC, distributor.