Hidden Forces Investment Implications of the AI CapEx Boom | Chase Taylor
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Nov 17, 2025 
Chase Taylor, head of research at Bulwark Capital Management and founder of Pinecone Macro Research, shares his insights into the transformative 'electric stack' and the AI CapEx boom. He discusses China's dominance in the electric stack, emphasizing cost declines and vertical integration in manufacturing. Chase explains how a multidisciplinary approach and foresight in trend analysis can reveal investment opportunities and risks. He also critiques the U.S. separation of design from manufacturing, highlighting the necessity for improved competitiveness and education.
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Electricity Demand Will Surge With AI
- The US risks an electricity shortfall as cheap shale tailwinds fade and AI electrification increases demand.
- Chase Taylor argues the electric stack's falling costs make broad electrification an economic, not just environmental, imperative.
Electric Stack Cost Curves Are Transformative
- The whole 'electric stack' (batteries, motors, power electronics, embedded compute) has seen ~99% cost declines since 1990.
- That fall enables rapid, cross-sector electrification and new product designs at much lower price points.
China's Manufacturing Flywheel
- China achieved dominance by driving costs down across batteries, motors, and power electronics and owning upstream supply chains.
- Co-location and horizontal complementarities let Chinese firms recombine parts into many products rapidly and cheaply.
