Welcome to Titan’s Take, our POV on the latest.
|
|
|
"Practically not a barrel of oil could get to a railroad without Rockefeller's consent." Historian Ron Chernow, describing Standard Oil's control
When a mega-tailwind arrives, the question is always how to invest capital to play the trend. Often, the less obvious bet can be a winning hand. One of our favorite questions to ask: where's the chokepoint?
Take air travel. It has enjoyed secular tailwinds for decades. The supply chain can be dramatically oversimplified to four steps: (1) parts becoming (2) airplanes, leased to (3) airlines, departing from (4) airports.
The most visible steps, (3) and (4), dominate the conversation. "I have a Delta flight (3) taking off from LaGuardia (4)." But the earlier, less glamorous step was the greatest chokepoint in the chain. TransDigm, the airline parts supplier at step (1), if bought at IPO, returned 31% annually for 19 years…162x your money.
Artificial Intelligence is the present mega-tailwind, unlike anything that has come before. Yet the same question applies: somewhere in the supply chain, where's a chokepoint?
The AI steps, drastically oversimplified: (1) mine sand, (2) refine it into silicon wafers, (3) fabricate those wafers into chips, (4) assemble chips into systems, (5) pack those systems into data centers, (6) sell access to that compute as cloud, (7) train models on top of that cloud, (8) and deliver intelligence to your pocket as Claude & ChatGPT. (Observation: it's pretty wild that we've turned sand into thought.)
Steps (7) and (8) have dominated the headlines. Anthropic, OpenAI, you know the names. But where is a chokepoint earlier in the chain? One answer: the glue between steps (3) and (4). Optics.
Optics is the technology of moving data using light instead of electricity. Inside a data center, servers need to talk to each other constantly and at enormous speeds. The faster AI models get, the more data needs to move between chips, racks, and buildings. Copper cannot keep up. Light can, powered by optical networking. Hello, chokepoint!
Like airline parts, optics is unglamorous, largely invisible to the consumer, and increasingly impossible to route around. That makes optical networking less of a bet on any single company and more of a toll road on the entire AI buildout.
Optics has been such a high conviction chokepoint for us, that we initiated positions across Titan Flagship & Opportunities. The optical networking market has responded accordingly, take Ciena (CIEN) for example.
|
Then as of recently we initiated positions in Offshore via Nokia and Tower Semiconductor. Nokia is, in our view, the only Western full-stack optical platform. Tower is one of three foundries on the planet capable of manufacturing silicon photonics at scale, with 70% of its new capacity already contracted through 2028.
Together, they give Titan exposure to a chokepoint layer of AI.
Yes, the models are important.
Yes, the chips are too.
But so are the pipes that make all of it work.
|
|
|
From Aahana Chatterjee, Vice President, Titan Wealth Advisory
"At Titan, we use the three A's: Automated, Active, and Alternatives. Hunting for differentiated AI investments lives in our Active bucket. Our trio of long-only strategies, Flagship (large cap), Opportunities (small cap), and Offshore (international), is how we express our views in stocks across the world. If you're looking to add active exposure to your portfolio or want better active management during the AI supercycle, give us a shout.” |
|
|
Titan Global Capital Management, Inc.
PO Box 4668 | PMB 85274
New York, New York 10163-4668 US
© 2026 Titan, All rights reserved.
|
As of the time of publishing, TransDigm Group Incorporated (TDG) and Ciena Corporation (CIEN) are holdings in Titan's Flagship strategy; Nokia Corporation (NOK) and Tower Semiconductor Ltd. (TSEM) are holdings in Titan's Offshore strategy; and as of 4/30/2026, OpenAI and Anthropic, Inc. make up 9.29% and 2.96% of the ARK Venture Fund, respectively.
Advisory services are provided by Titan Global Capital Management USA LLC ("Titan"), an SEC-registered investment adviser. Titan’s affiliate, Titan Global Technologies LLC (“TGT”), is an SEC-registered broker-dealer. Both Titan and TGT are subsidiaries of Titan Global Capital Management, Inc. This content is for informational purposes only and is not investment or financial advice, tax or legal advice, an offer, solicitation of an offer, or advice to buy or sell securities or other products offered by Titan, TGT, or any third party. Any mention of companies, securities, asset classes, or investment strategies does not constitute affiliation, an endorsement, or a recommendation.
References to investment themes are based on Titan’s internal research and opinion as of the date of this communication. Any descriptors used should not be construed as a promise of quality or a guarantee of performance. Statements made in these communications represent opinions and conjecture, and should not be construed as a guarantee of future results. This communication may contain forward-looking statements, which are subject to inherent risks and uncertainties that could cause actual results to differ materially. They should not be relied upon when making investment decisions. We do not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
References to specific stock performances are provided for historical market context and are not indicative of future results or the performance of any Titan strategy. Any performance mentioned regarding individual securities reflects market performance for educational purposes only and is therefore shown gross of fees, where applicable. Actual performance may vary based on individual circumstances, including the specific timing of trade execution, which can impact the cost basis of any given investment. Valuation assessments in our communications are based on internal analysis and are for informational purposes only. They should not be the sole basis for investment decisions and may differ from others' views or assessments. No warranty is made regarding their accuracy or completeness. The mention of a security does not imply it is held in a Titan strategy. Where Titan does hold a company mentioned in our strategies, we’ll disclose it.
Various Registered Investment Company products (“Third Party Funds”) are offered by third-party fund families and investment companies on Titan’s platform as one of many potential investment options available to Titan’s clients, that may or may not be recommended based on an individual client’s investment objectives, risk tolerance, or suitability. Third Party Funds that are available on Titan’s platform are interval funds, which are highly speculative and subject to a lack of liquidity compared to other types of investments. Always review the prospectus in its entirety for a full list of risks associated with investing in the Third Party Fund before making any investment decisions. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.
All investments involve risk, and the past performance of a security, particular strategy, or financial product does not guarantee future results or returns. Investment growth is not guaranteed. No strategy or asset guarantees the accumulation of wealth, and any potential benefits are subject to market, tax, and individual financial risks. Certain investments are not suitable for all investors. Diversification is a portfolio allocation strategy that seeks to minimize inherent risks by holding assets that are not entirely correlated. Keep in mind that while diversification may help spread risk, it does not ensure a profit or protect against loss. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. The price of a given security may increase or decrease based on market conditions and clients may lose money, including their original investment and principal. The information provided does not take into account the specific objectives, financial situation, or particular needs of any specific person. Investment decisions should be based on individual financial circumstances, objectives, and risk tolerance. Investments in securities are not FDIC insured. Please visit www.titan.com/legal for additional disclosures.
|
|
|
|
