The new NECK fund is useful shorthand for a change in how some investors are thinking about artificial intelligence. The trade has long focused on models, software and leading chipmakers, but the constraint may increasingly be physical: data centers need power, cooling, network capacity and scarce components before AI services can scale. That changes the investment question from who has the best algorithm to who controls the inputs that make deployment possible. If any layer of the supply chain tightens, it can slow rollouts or raise prices even when software progress continues.
For Philippine businesses, this matters because AI adoption is not just a subscription purchase. Banks, insurers, telcos, e-commerce firms and BPO companies may encounter higher infrastructure costs, longer lead times or less favorable vendor pricing if global supply remains tight. The effect will show up in cloud budgets, hardware refresh cycles and the pace of digital product launches. At the same time, local firms can benefit from the supporting ecosystem: IT integration, electrical work, cooling maintenance, fiber connectivity, data center services and cybersecurity. Companies that help customers deploy AI efficiently may find demand even if they do not build chips or models.
For PSEi investors, the key is to separate companies that gain from rising AI spending from those whose margins are squeezed by higher input costs. Firms with pricing power, recurring revenue and clear exposure to enterprise digitalization are better positioned than businesses whose operations depend heavily on hardware purchases or electricity-intensive processes. Domestic energy policy, data center approvals and internet infrastructure investment will also affect how quickly Philippine firms can adopt AI at scale.
The watch item is whether scarcity in physical inputs becomes a persistent theme rather than a temporary supply shock. If it does, the AI trade may increasingly reward companies that control scarce capacity, while local businesses should plan for higher infrastructure costs and prioritize vendors with reliable delivery.