Power Semi Small Caps
3 small caps that have the best Risk/Return and haven't gone parabolic yet
Disclaimer: This is not FA and I own some positions in the stocks mentioned.
A few months ago, I talked about Status quo and the fundamental shift that is required to realize 30-50X increase in Power density within AI data centres.
Let me do a quick recap
Problem:
• A single NVIDIA B200 or AMD MI300X consumes 0.9kW – 1.4 kW. Dont even ask me about Ruben.
• A “pod” of 8 such accelerators + CPUs approaches 12–15 kW
• An AI training cluster is hundreds of pods – multi-megawatt
At 12 V distribution you would need kilo-ampere bus-bars thicker than a wrist; power loss alone would exceed the chips’ TDP
• On top, Every 1 cm² of copper busbar you delete saves you north of $20/kg and a small argument with the procurement team.
Hear about it directly from the Horse’s mouth
NVIDIA’s own whitepaper claims ~45% less copper in an 800 V plant.
So First principles first, whats actually happening?
Here is a nice infographics to follow along the transition. Power distribution is changing from AC into DC microgrids.
Optics is forcing this transition quickly. And now that the retail knows what happened to Optics stocks, they are coming swinging for this sector too.
Here is what you need to understand about the Power Semis
Voltage is the cheat code. Crank it up early and keep it up for as long as possible. Then step it down ONLY inches from silicon, and you can unlock power dense, greener, cheaper AI factories.
If you need a refresher, go read this 6 months old post first.
On this post, VICR did 5X since this post.
If you are confused about SiC, vs GaN etc. Here is a great infographics that shows where does each of them thrive in the Data center value chain
Now that the market is interested in this deeply, lets go through the 3 small cap names that might do a few multi baggers for us. I will assess them and rank them.
