New large position in
$KSTR, now second biggest after
$PURR /
$HYPE.
Thesis is simple: name a hardware AI enabler in the US/ROW and the Chinese champion version is in this STAR50 index: Cambricon =
$NVDA, Hygon =
$AMD /
$INTC, AMEC =
$LAM, VeriSilicon =
$ARM etc.
China MUST win AI as a number 2 to US: better energy situation, greater robotics deployment opportunity, many billions of Chinese and other people globally will not be allowed to use American LLMs (Russia Iran etc.), they will cheaply distill the leading edge LLMs and be “good enough” cheaper versions. And the US will never allow the leading edge hardware into China in size, so the homegrown champions need to do it.
Index is up 36% YTD and flat 5Y;
$SOXX up 100%/300% same time frame.
H/T
@citrini for yet again flagging an undiscovered gem early here.
kraneshares.com/etf/kstr/