Currently, the entire AI world narrative is structured into five layers:



First layer: Energy layer. Driving AI requires a大量的能源, and US electric utility stocks have taken off.

Second layer: Chip layer. Nvidia, TSMC, Broadcom, and Google TPU are the standout players in this bull market.

Third layer: AI cloud service providers. Due to upstream and downstream pressures and huge capital expenditures, the stock prices of Amazon and Oracle are not very optimistic.

Fourth layer: Large language models. Google, OpenAI, and xAI. Competition is fierce, with Google currently leading.

Fifth layer: Application layer. Various applications based on large language models in vertical fields such as finance, shopping, travel, business, scientific research, etc. Currently, this ecosystem is flourishing, with AI companies in every field. A paradise for entrepreneurs.

If you want to buy AI stocks, you should identify leading companies in each of these five layers—market leaders with a moat, monopolistic companies that are at the forefront of the market.
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