The AI Supercycle™ Report: Key Trends for AI Investors

Key Takeaways:

AI Infrastructure is Booming: Tech giants are committing over $300 billion to build AI-ready data centers and expand computing power, signaling AI’s shift from hype to large-scale implementation.
Investing Beyond Big Tech: Semiconductor, networking, and AI infrastructure companies are emerging as key players in AI’s next phase, creating diversified investment opportunities.
AI’s Competitive Landscape is Evolving: The rise of custom AI chips, edge AI, and regulatory shifts is reshaping the market, creating new winners beyond the usual tech giants.

Quote of the Week:

“The emergence of competitors like DeepSeek has only strengthened our conviction in our AI strategy.”
— Mark Zuckerberg, CEO of Meta Platforms via Investopedia

Top 5: AI in the Headlines

AI is moving fast—so are the investment opportunities. The AI Supercycle™ Report captures the key developments over the past two weeks that AI investors interested in capturing the entire supply chain need to know. We also include examples of companies well-positioned to capitalize on these trends, as well as our Chart of the Week.

1. The Times: Big US Tech Firms to Spend $300bn on AI Infrastructure

Why It Matters: Major US technology companies, including Amazon, Alphabet, Microsoft, and Meta, plan to invest over $300 billion in AI infrastructure in 2025, up from $230 billion in 2024. This significant increase underscores the industry’s commitment to advancing AI capabilities.
Key Quote: “Amazon is leading with a projected AI investment of $100 billion, while Alphabet and Microsoft are focusing on leveraging AI for future business opportunities.”
Stock Exposure: VistaShares Artificial Intelligence Supercycle ETF (AIS) holds Super Micro Computer (SMCI) and Vertiv Holdings (VRT)—two emerging AI infrastructure players. Super Micro specializes in high-performance AI servers, while Vertiv provides power and cooling solutions critical for AI data centers.

2. Barron’s: Broadcom Stock Gains. Why the AI Chip Maker Got a Boost from Meta

Why It Matters: Broadcom’s collaboration with Meta Platforms on the MTIA chip signifies a strategic move towards custom AI hardware, potentially reducing reliance on traditional GPU suppliers like Nvidia and AMD.
Key Quote: “Meta’s substantial long-term investment in AI technology, particularly the MTIA chip developed with Broadcom, underscores the shift towards custom AI hardware solutions.”
Stock Exposure: AIS holds Marvell Technology (MRVL) and Lattice Semiconductor (LSCC)—both key players in AI chip innovation. Marvell produces networking and AI-optimized chips, while Lattice specializes in AI-enhanced FPGAs (programmable chips that improve AI processing).

3. Financial Times: Nvidia boss Jensen Huang meets Donald Trump at White House

Why It Matters: Nvidia CEO Jensen Huang met with President Donald Trump, underscoring the strategic importance of AI in national policy and positioning Nvidia at the center of U.S. AI expansion.
Key Quote: “Strengthening U.S. AI and technological leadership is crucial in the face of rapid advancements by international competitors.”
Stock exposure: AIS holds Arista Networks (ANET) and Credo Technology Group (CRDO)—key beneficiaries of AI-driven networking demand. As AI models require greater data transfer speeds, Arista’s high-speed networking solutions and Credo’s semiconductor connectivity solutions are well-positioned for growth.

4. AI News: Ursula von der Leyen: AI Race ‘is Far from Over’

Why It Matters: European Commission President Ursula von der Leyen emphasized that the global AI race is still evolving, highlighting Europe’s strategic priorities in AI regulation, research, and competition. Her remarks underscore the EU’s push to balance innovation with ethical AI oversight.
Key Quote: “The AI race is far from over. The EU must remain at the forefront, ensuring a balance between competitiveness and trust in AI systems.”

5. Barron’s: Qualcomm and Arm Can Gain From DeepSeek. They Need 1 Thing to Change

Why It Matters: The emergence of DeepSeek, a Chinese AI model developer, highlights the potential of edge AI—moving AI computing from data centers to devices, benefiting companies focused on AI processing at the edge.
Key Quote: “DeepSeek’s innovation presents growth opportunities in moving computing from the cloud to devices, known as ‘edge AI.'”
Stock exposure: AIS includes Ambarella (AMBA) and Cadence Design Systems (CDNS)—both positioned for edge AI growth. Ambarella builds AI vision processing chips, while Cadence provides AI-driven design tools for semiconductor development.

Chart of the Week: Projected Growth of the Global AI Market

Closing Insights

The AI industry is undergoing rapid transformation, with major tech firms committing over $300 billion to AI infrastructure and custom chip development. Meanwhile, government policy and public sentiment are beginning to shape the future of AI regulation, adding new complexities for investors. The rise of edge AI and alternative AI hardware solutions highlights emerging opportunities beyond the dominant players, reinforcing the need for a diversified approach to AI investing.

At VistaShares, we focus on capturing the entire AI supply chain—not just the obvious winners. The VistaShares Artificial Intelligence Supercycle ETF (AIS) is designed to provide exposure to the companies driving AI infrastructure, computing power, and connectivity. As AI investment themes evolve, we remain committed to identifying opportunities beyond the headlines, ensuring that investors are positioned for AI’s long-term supercycle.

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.

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history on which to base their investment decisions.

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