Cloud Computing

This basket targets the cloud computing ecosystem powering hyperscale data centers and AI workloads, capturing companies that deliver high-speed connectivity, specialized infrastructure, and scalable cloud platforms essential for massive data transfer, low-latency processing, and efficient compute at global scale. It holds 20 names with an effective N of 19.8, spanning the semiconductor and software-infrastructure sectors, where leaders in optical/electrical Ethernet solutions and AI-native cloud services dominate exposure. The investment logic rests on structural tailwinds: the global cloud computing market exceeded $900 billion in 2025 and is projected to surpass $1.1 trillion in 2026 with CAGRs ranging from 15.7% to over 20%, fueled by enterprise migration, hybrid architectures, and surging AI infrastructure spend that drove cloud infrastructure services revenue to $119 billion in Q4 2025 alone, up 30% year-over-year.

Key risks include elevated valuations vulnerable to any slowdown in hyperscaler capex cycles, potential supply chain constraints in advanced semiconductors, and execution challenges for high-growth names scaling AI-specific offerings amid intensifying competition. With no specific warnings flagged, the basket carries concentrated exposure to the AI-cloud intersection. The highest-conviction positions are the equal top holdings CRDO, ALAB, and CRWV at 5.7% each with exposure scores of 73, as these pure-play enablers—Credo and Astera Labs in high-speed connectivity for data center interconnects, and CoreWeave in purpose-built GPU cloud infrastructure—sit at the epicenter of the secular shift to AI-driven cloud demand, delivering differentiated technology that directly addresses bandwidth, power efficiency, and workload optimization bottlenecks for hyperscalers and AI developers.