"HALO" Concept Part Two! Overview of the AI HALO Industry Chain

CryptocurrencySniper · 2026-03-03T11:33:25+00:00

Recently, domestic and international investment institutions have been paying attention to "HALO" assets, referring to the concept of "heavy assets, low淘汰," emphasizing areas that remain economically relevant during the AI revolution. HALO assets include power transmission networks, oil and gas pipelines, and others, and are also applicable in the AI field. Guosen Securities has outlined three major levels and 16 sub-industries, predicting that in the coming years, large companies' capital expenditures will significantly increase, driving demand for related hardware and infrastructure.

CryptocurrencySniper

2026-03-03 11:33:25

Abstract generation in progress

Recently, the term “HALO” has been expanding rapidly. After international investment banks like Morgan Stanley and Goldman Sachs, domestic investment institutions have quickly adopted it and proposed AI HALO assets based on the original concept.

Before we begin, let’s review what HALO is. HALO is an acronym for “Heavy Assets, Low Obsolescence.” Heavy assets refer to assets built on substantial physical capital with high barriers to replication. Low obsolescence means that the economic relevance of these assets can persist through technological cycles (i.e., business models and assets are essential and won’t be replaced by the AI revolution).

HALO assets include power transmission grids, oil and gas pipelines, public utilities, transportation infrastructure, key equipment, materials, and various industrial capacities with longer replacement cycles compared to digital innovation. For example, Morgan Stanley’s HALO basket (MSXXHALO) covers seven structural pillars: materials, utilities, railways, pipelines, waste management, defense, and signal towers. Correspondingly, fields like software, IT services, publishing, gaming, and logistics platforms are outside the HALO scope.

Many people directly equate HALO assets with traditional “old economy” assets like oil and gas, utilities, and infrastructure. However, the core of HALO lies in “heavy assets” and “low obsolescence,” and there are HALO assets in the AI sector as well.

Based on Guosen Securities’ research report, we have outlined three levels and 16 sub-industries within the AI HALO domain. The three levels are: computing power service output, computing infrastructure, and core hardware and components. The computing service output layer includes computing leasing and data centers (IDC); the infrastructure layer includes AI servers, server power supplies, liquid cooling, and switches; the core hardware and components layer includes wafer foundries, AI chips, boards/modules, PCBs & carrier boards, storage testing & packaging, and optical modules.

Guosen Securities states that the combined capital expenditure of Google, Microsoft, Meta, and Amazon from 2024 to 2026 will total $1.3111 trillion (with $660 billion in 2026), three times the capital expenditure from 2021 to 2023. The significant increase in overseas tech giants’ capital spending aims to purchase AI chips, AI servers, switches, and related hardware, which require infrastructure like data centers and energy power plants. These assets will directly benefit from the infrastructure investments.

(Original source: Oriental Fortune Research Center)

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