Themes - DeepSeek, Kimi And AI Efficiency Paradigm Shift (Pt.3)

Shorter, denser AI systems could change which optical parts customers need. In the final part of our 4Q26 rebalance, we add ams OSRAM, prioritize Veeco and Aeva, and take smaller, speculative positions in MicroVision and Quantum Computing Inc., funded partly by trimming correlated exposure.

Huawei’s new phone chip is more than a sanctions workaround: it points to another way to improve chips when shrinking transistors gets harder. The bigger test is AI, where the same ideas could cut data-movement costs and make Huawei’s NPUs a serious challenge to NVIDIA.

Customers are redesigning around tight chips, memory, optics and power. We increased Cerebras to 1% and SPCX to 4%, and we trimmed Soitec to 3.5% and POET to 0.75%.