MS Portfolio Update | March 2026
Energy, Optics & Advanced Packaging
Hi,
Since quite a few of you have joined us over the past few weeks, MS Portfolio is where we invest in our highest-conviction trends. We strive for absolute transparency, and we will be meticulous in sharing our portfolio performance at the beginning of every month, providing a detailed view of our transactions, current allocation, and returns for each position.
To date, we have published reports on 3 AI bottlenecks and have invested in one (MS portfolio was launched on Jan 30th 2026). As of today, all three of our baskets are now outperforming the market. Let’s dig in:
Market Sentiment dives deep into the bottlenecks of the AI world. Join 65,000 other investors to make sure you don’t miss our next briefing.
1. Energy
AI may look like software, but under the hood, it behaves not much unlike heavy industry. Every model, from GPT to Gemini, runs on compute clusters that consume power at the scale of small cities.
Our thesis is simple — while U.S. power generation capacity is growing at 2% per year, data center energy demand is now growing at 20% YoY. AI workloads are estimated to consume nearly 12% of the total U.S. power supply by 2030.
We put together a portfolio of 4 segments, each uniquely positioned to capture AI’s accelerating demand for power. To date, the portfolio has returned 8%, compared to 5% for the S&P 500.
You can read our full report and justification for each segment and company below [Free report]
2. Optics
The Copper Wall is the physical limit beyond which copper cables cannot transmit data fast enough over a given distance. As the signal frequency increases (to push more data), the current density tends to concentrate near the surface rather than flow uniformly across the cross-section. This reduces the effective conductive area of the wire, leading to higher resistance and signal loss.
To scale AI clusters from thousands to hundreds of thousands of GPUs, the industry has no choice but to adopt optical interconnects for short-reach applications that were previously the exclusive domain of cheap, passive copper.
Instead of using a copper wire to send data, an optical interconnect converts electrical signals into pulses of light and sends them through a fiber-optic cable, allowing it to carry massive amounts of data without loss or distance limitations.
We put together a portfolio that will drive and benefit from this change over the next 4 years. After 3 months, while QQQ is down 3%, the optics portfolio is up 1.2%.
3. Advanced Packaging
Finally, we come to our highest performing basket. In just one month, the Advanced Packaging portfolio is up 14% while Nasdaq is down 4%. Our two biggest allocations, SK Hynix is now up 25%, and Samsung is up 37%!