For much of the AI trade’s epic run, a winning strategy for investors involved locating bottlenecks.

As hyperscalers rushed to build out AI infrastructure, there was a premium placed on the components needed. The stocks of companies who made these products saw big runs up, especially if there was a supply shortage.

But Gavin Baker, CIO of Atreides Management, says this strategy is starting to give way to a new mode of thinking.

Baker recently shared his insights on the AI trade with the hosts of TBPN, a daily live-streaming show and podcast focused on tech and business. He said investors are now focusing instead on companies that can produce longer-term results.

“Everybody’s having Claude and Run…