HPS.A

Multi-year bottlenecks in transformers (HPS.A), NAND (SNDK), and EML/OCS (LITE) create near-guaranteed revenue and margin expansion due to backlogged orders into 2028.

Bullish on transformer/switchgear DC bottleneck (HPS.A), AI CPU ramp (ARM), CW laser ramp for H2 2026 and 2027 (SIVE), and photonics foundry (TSEM).

Hammond is a structural long benefiting from the transformer/switchgear bottleneck in data centers, with products sold out for 2-5 years and backlog visibility.

Reiteration of bullish thesis on $HPS.A based on transformers analogy, with increased conviction from personal life experiences.

Expects $HPS.A to double over time despite recent 21% gain.

HPS.A is up 21% since thesis 2 weeks ago, with expectations of triple-digit returns over time due to extreme transformer bottleneck lasting multiple years.

Bullish on photonics supply chain (SIVE, 6451, MRVL, HPS.A) due to CPO/1.6T supercycle, with specific catalysts for each.

HPS.A is a steady compounder benefiting from underappreciated transformers/switchgear bottlenecks.

HPS.A appears derisked due to strong backlog and bottleneck demand in transformers/switchgear.

Transformer bottlenecks and upstream supply chains are now a national emergency, likely leading to increased government spending and policy support for companies like HPS.A.

The Defense Production Act invoked for grid infrastructure will lead to federal contracts benefiting multiple companies in transmission, power electronics, capacitors, substations, transformers, and electrical steel.

Reiterates bullish thesis on HPS.A for transformers, citing national security importance and steady appreciation.

$HPS.A is a beneficiary of domestic infrastructure spending and the 'Anything but China' policy due to its leadership in dry transformers and switchgear with critical US production facilities.

AI hyperscaler demand is causing widespread supply chain bottlenecks across semiconductors, materials, and infrastructure components, benefiting companies exposed to CPUs, semiconductor equipment, photoresists, grid components, optical modules, and photonics.

Bullish on AI infrastructure plays: SIVE for CPO/1.6T lasers, LPK for glass core substrates, HPS.A and SOI for optical test/packaging, driven by CPU bottleneck and AI inference demand from earlier thread context.

HPS.A shows strong earnings beat and 94.6% Y/Y backlog growth, indicating sustained demand for transformers critical to American infrastructure.

HPS.A is a compelling compounder in the dry transformer market with high demand visibility, solid backlog, and high market share.