There’s a massive blind spot in today’s AI boom.
Everyone is chasing semiconductors… software… robots…
But very few investors are paying attention to what actually powers it all.
And I mean that literally.
Because none of this works without one critical piece of infrastructure:
Cables.
The AI “Picks and Shovels” Trade
Every AI data center, every power grid upgrade, every electrification project needs massive amounts of copper cabling.
We’re talking about high-voltage transmission lines, subsea cables connecting continents, data center wiring systems, and renewable energy grid connections.
This is the plumbing of the AI revolution. And demand is exploding.
Currently, there are two dominant players at scale: Prysmian (PRYMY) and Nexans (NEXNY).
These aren’t speculative AI names… They’re mission-critical infrastructure companies.
And the market is finally waking up.
Nexans: Breaking Out on Earnings
Shares of Nexans are rallying today after a strong earnings report - and it’s easy to see why.
From their latest update:
Q1 sales came in at €1.5 billion, up 1.3% year-over-year
Electrification businesses grew ~4.9% organically
Key segments like power transmission and grid showed solid growth
Data center demand is now a core driver of growth
Even more important…
They’re aggressively expanding in the U.S. with the acquisition of Republic Wire - a move that strengthens their position in low-voltage wiring for infrastructure and data centers .
This is exactly where the growth is.
And it’s why the stock is moving.
Prysmian: Already a Huge Winner
While Nexans is just starting to break out, Prysmian has already been a monster winner — up over 100% in The McCall Letter.
And it's not hard to understand why.
As the global leader in subsea and high-voltage cables, Prysmian has massive exposure to offshore wind and grid upgrades and is a direct beneficiary of the AI data center buildout.
This is what a true "picks and shovels" winner looks like.
Why This Trend Is Just Getting Started
Here's the bigger picture most investors are missing: AI isn't just a software story — it's an infrastructure story.
And that infrastructure requires power generation, power transmission, and power distribution.
At the center of all of it… cables.
Nexans itself highlighted that demand is being driven by data centers, renewables, and grid modernization.
That's a multi-decade trend.
The Bottom Line
If you want to play AI the smart way…
You don’t just chase the headlines.
You follow the money.
And right now, the money is flowing into the backbone of the system.
The companies building the grid… wiring the world… and powering the future.
That’s why we recently added Nexans to The McCall Letter – prior to today’s massive breakout.
And it’s why this sector remains one of the most overlooked - and powerful - ways to invest in the AI revolution.
Here’s to the future,
Matt McCall
Founder, NXT Wave Research
