WEEX Labs: In the Second Half of AI, the Real Competition Lies in the "Old Economy"?

Intel CEO Lip-Bu Tan recently shared a core insight in an interview on the *No Priors* podcast that challenges established market perceptions: the AI bottleneck has long since surpassed just GPUs.

He pointed out that constraints within industrial systems such as power supply, heat dissipation and cooling, new materials, and packaging manufacturing are becoming the real bottlenecks.

In fact, according to numerous reports, data centers have an insatiable appetite for electricity. The expansion of power grids, the consumption of basic materials like copper and rare earths, and the advanced manufacturing capacity needed to package tens of billions of transistors together are becoming the true "Achilles' heel" constraining AI development.

Tan's viewpoint reveals a clear investment theme: in the second half of AI, the focus isn't just on GPUs, but also on a capital-intensive, long-cycle "physical infrastructure battle" centered on electricity, materials, and manufacturing.

In this piece, WEEX Labs uses Intel's perspective as a starting point to deconstruct this trend and analyze key US-listed stocks across different sectors.

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1. Power & Energy Grids: The "Blood" of AI

Constellation Energy (CEGON) | Market Cap: ~$99 Billion

Business: The largest nuclear power operator and carbon-free energy generator in the U.S.

Core Advantage: Nuclear power is the only energy source capable of providing 24/7 zero-carbon baseload power. As tech giants aggressively secure long-term Power Purchase Agreements (PPAs), CEG becomes a prime beneficiary due to its massive nuclear fleet. Q1 2026 revenue was $11.1 billion (well above expectations). If PPAs continue to materialize, there is still room for valuation upside.

GE Vernova (GEVON) | Market Cap: ~$300 Billion

Business: A global power equipment giant, with core products including gas turbines, grid equipment, and energy storage systems.

Core Advantage: When renewable energy cannot meet AI's baseload demands, natural gas power becomes a key transitional solution. GEV holds a dominant position in the global gas turbine market. At the end of Q1 this year, its gas power orders surged to 100GW, with year-end backlog orders expected to be at least 110GW, providing strong earnings visibility.

Eaton (ETNON) | Market Cap: ~$164 Billion

Business: A global leader in intelligent power management, covering the entire chain "from grid to chip."

Core Advantage: Provides integrated solutions for data centers covering power distribution, circuit protection, and liquid cooling. Driven by strong demand from AI data centers, Q1 2026 revenue and profit both beat expectations. The company raised its full-year organic growth guidance to 10% and expects Q2 EBITDA growth to climb to 18%-24%.

Vistra (VSTON) | Market Cap: ~$56 Billion

Business: The largest non-regulated power producer and retail energy supplier in the U.S.

Core Advantage: Owns 44GW of generation capacity (including natural gas, nuclear, etc.) and serves nearly one-third of electricity consumers in Texas. Recently signed a major nuclear power supply agreement with Meta and acquired Cogentrix, adding 5.5GW of natural gas capacity, making it a core beneficiary of the AI power surge.

Oklo (OKLOON) | Market Cap: ~$10 Billion

Business: A pioneer developer of small modular nuclear reactors (SMRs).

Core Advantage: Specializes in the "Aurora Powerhouse" fission plant, employing a long-term "nuclear power as a service" PPA model. Although in its early stages, its narrative aligns with the long-term demand from AI data centers for clean, reliable baseload power, commanding a significant premium for its exposure to this high-growth sector.

2. Data Center Physical Infrastructure & Thermal Management: The "Skeleton & Cooling" of AI

Vertiv Holdings (VRTON) | Market Cap: ~$138 Billion

Business: The absolute global leader in critical data center infrastructure and liquid/thermal management.

Core Advantage: As AI chip power consumption pushes limits, liquid cooling is shifting from "optional" to "mandatory." Vertiv holds a backlog of approximately $15 billion in orders and collaborates on joint development with NVIDIA. It recently completed two strategic acquisitions in thermal management, further cementing its dominant position in high-performance computing cooling.

Equinix (EQIXON) | Market Cap: ~$110 Billion

Business: The world's largest data center REIT, providing colocation and interconnection services.

Core Advantage: Operates 260 data centers across 71 markets globally. As the "landlord" for AI computing infrastructure, Equinix directly benefits from AI cluster expansion. Higher power density translates to higher rent per cabinet, creating a dual tailwind of increased rental rates and expansion.

CoreWeave (CRWVON) | Market Cap: ~$60 Billion

Business: A cloud infrastructure platform specifically built for AI workloads, offering GPU compute rental, AI-native cloud services, and data center colocation.

Core Advantage: Deeply integrated with NVIDIA, with clients including leading AI players like OpenAI, Anthropic, Meta, Google, and Microsoft. As of Q1 2026, its revenue backlog reached $99.4 billion, with full-year 2026 revenue guidance of $12-13 billion. As a "pure-play" specialist in AI computing infrastructure, CoreWeave directly capitalizes on the era of AI shifting from training to inference.

3. Critical Raw Materials: The "Foundation" of AI

Freeport-McMoRan (FCXON) | Market Cap: ~$99 Billion

Business: One of the world's largest publicly traded copper producers.

Core Advantage: Copper is the "blood" of the electrification era. Every stage of AI computing expansion – from grid upgrades and transformer manufacturing to internal data center wiring – requires vast amounts of copper resources. Amidst a difficult environment for new mine permitting, FCX is well-positioned to benefit long-term from the AI-driven super-cycle in copper demand thanks to its high-quality copper assets.

MP Materials (MPON) | Market Cap: ~$10 Billion

Business: The largest rare earth producer in the Western Hemisphere, operating the only active large-scale rare earth mine in the U.S.

Core Advantage: Rare earths are core materials for AI robot servo motors, high-performance chips, and advanced packaging. In Q1 2026, MP achieved record production of neodymium-praseodymium oxide. As the only scaled rare earth supply chain company based in the U.S., MP perfectly aligns with Western "supply chain security" strategies, commanding a significant geopolitical premium.

Conclusion

Lip-Bu Tan's insight punctures the illusion that "AI just needs more GPUs." The AI boom is deeply anchoring into the physical world – power, materials, and manufacturing are no longer just parts of the "old economy," but the most critical foundations supporting the skyscraper of AI.

Compared to pure-concept stocks, these industrial giants offer greater resilience and long-term compound growth potential. However, current valuations may already reflect some optimistic expectations. Investors should conduct their own research (DYOR), considering factors like macro interest rates, execution progress, and geopolitical elements.