Public Market Updates

Coatue

Research

32 Pages

Coatue frames the current market as a tug of war between AI infrastructure sellers and hyperscaler buyers. Despite tariff, oil, inflation, valuation, and AI bubble concerns, the deck argues market leadership has shifted toward companies with scarce supply, pricing power, and visible cash flow.

Key Takeaways

Shortage Sellers Lead: Sellers of AI infrastructure are up about 107% year to date, while buyers of shortage are down roughly 4%.
Margins Are Expanding: Micron operating margin rose from a 16% five year average to 69% today, while Seagate moved from 17% to 38%.
AI Funding Is Large: Coatue estimates public companies can fund $12 trillion of AI capex from 2026 to 2031, including $6 trillion from cash flow.
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