Innovator Deepwater Frontier Tech ETF

Yesterday, PwC came out with their long-run global AI data center spend report. My take is that their estimates dramatically understate the staying power of data center (aka the brain of AI) growth.

To put it in perspective, data center spend is still growing about 70%+ in the near term. PwC estimates annual growth between 2030 and 2050 will average 2.5%. That number feels too low. My best guess is that it probably approaches between 5–10% per year, as supported by PwC’s upside scenario of 6.5%. Those rates may look close on paper (2.5% vs. my midpoint of 7.5%), but they are not. Compounded over 20 years, 10% growth leaves annual spend about 4× what PwC’s midpoint is and about 2× their upside.

Our Deepwater Frontier Tech ETF, $LOUP, is investing in some of these data center infrastructure companies that will aim to ride the growth of AI for decades.

Source: Gene Munster

$Meta Platforms(META.US) getting more into physical AI (aside from smart glasses). They just acquired Assured Robot Intelligence to build humanoid robots. No terms given. My guess is they paid sub $5B.

Big Tech (TSLA, GOOG, AMZN) appears all-in on robotics,and they'll be purchasing gear from smaller companies to build that future. My Innovator Deepwater Frontier Tech ETF ($LOUP) has a focus on smaller, high-conviction companies enabling the AI and robotics transformation.

To view LOUP’s holdings:

Source: Gene Munster

Melania Trump walking the red carpet with Figure 03 was the third step forward for bots this week. We also saw $Uber Tech(UBER.US) commit $1.25B to robotaxis and Google DeepMind sign its third robotics hardware partnership in six months.

Bottom line: We believe investors shouldn't focus too much on the timing. They’re coming, and they will profoundly impact humanity, similar to the phone and the automobile.

This is the kind of frontier tech we aim to invest in for the Deepwater Frontier Tech ETF (LOUP) ETF:

Source: Gene Munster