We are at a war for compute power, says Constellation's Ray Wang

Market Volatility & Macroeconomic Factors - The tech sector experienced volatility last week due to weakening sentiment around valuations and bank-related stress [1] - The market sought a signal of peak pullback and risk-off sentiment last week [3] - Government data, including BLS and CPI figures, may influence rate cuts [3] - China trade situation is largely factored into stock prices, particularly for companies like Nvidia; resolution could lead to better results [8][9] AI & Compute Power - The industry needs approximately 250 gigawatts of compute power by 2030, compared to 122 gigawatts today, requiring a 2x increase [4] - AI capex is significantly increasing, with AWS, Azure, Google, Meta, and Oracle projected to invest around $410 billion by 2025, a 7% increase from this year [4] - The world is competing to reduce the cost per gigawatt-hour [7] Investment Opportunities - Amazon has potential upside, with development happening across its network of centers, focus on the balance between core business and AWS [9][10] - Tesla's stock could reach $2,700 if Elon Musk achieves targets leading to an 8.5 trillion market value [11][12] - Energy-related stocks, including those in precision manufacturing, distribution centers, and power plants, are attractive due to significant foreign investment [13][14] - CoreWeave is making it easier for companies to navigate the data center and AI infrastructure landscape, standardizing the market [15]