PMS fund manager Saurabh Mukherjea, who runs the multi-million dollar Marcellus Investment Managers, is neither buying Nvidia nor the large language model companies. While the S&P 500 bets half its weight on seven hyperscalers and their suppliers, Mukherjea is building a global portfolio around a simpler question: if AI is real, who gets paid to make it physically possible? The answers he has arrived at are turbine manufacturers in Germany, chip foundry equipment makers, industrial component distributors in Europe and America and, through a completely separate thesis, Airbus and Hermès.
Global data centre capital expenditure is running at $700–800 billion a year, based on what the hyperscalers are disclosing in their annual reports, and Mukherjea believes it will hold at that level for the next four to five years. The supply chain that feeds that buildout — chip foundry equipment, cooling liquids, connectors, switchboards, gensets — will generate between $100 and $300 billion in annual revenue. But Mukherjea is not buying the AI companies at the centre of it. He is buying the pipes and wires and turbines that make it physically possible to run them.
