Prediction: The Artificial Intelligence (AI) Supercycle Will Survive the Iran War. But the Supply Chain That Feeds It Just Changed Forever.
The AI supercycle is expected to continue despite the Iran conflict, but the supply chain is changing, with companies like Linde and Air Products benefiting from the new dynamics. The conflict has highlighted the importance of helium, a critical component in semiconductor manufacturing.
The AI supercycle is predicted to survive the Iran conflict, despite initial concerns. The iShares Semiconductor ETF surged over 30% since March 30, and Taiwan Semiconductor Manufacturing reported no immediate operational disruption. The demand for AI compute is no longer optional, with hyperscalers like Microsoft, Alphabet, and Amazon committing hundreds of billions to data center build-outs. The conflict has changed the supply chain dynamics, making helium a strategic asset. Linde, the world's largest industrial gas company, has emerged as a prominent beneficiary due to its significant helium storage capacity and supply network. Air Products and Chemicals is another company worth watching due to its industrial helium distribution infrastructure. The reshoring trade has gained new urgency due to the complexities in the global chip supply chain.
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