Infrastructure Demand Cascade

When a new technology (such as AI) experiences explosive adoption, direct user demand ripples upstream through the infrastructure stack: application layer → chip layer → interconnect layer → optical layer. Suppliers closer to the foundation experience more certain demand signals with longer cycles, but lower visibility into end-user needs.

Read the daily articles behind this idea on the Chinese edition.

Related principles

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  Capability Premium Shift
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  Technology-Demand Resonance
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  Capital Flow as Market Structure Signal
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  Supply Chain Autonomy Threshold
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  Demand-Supply Mismatch & Margin Expansion Paradox
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  Incremental Supply Chain Substitution
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  Capability-to-Monetization Lag
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  Supply Chain Localization Tipping Point