TRG | The Bottom Line – 8/1

Winding down from a busy earnings season, TRG hosted our annual summer ping pong tournament, and our amazing summer interns ruled the day! TRG from day one (literally) has hosted interns, a strong believer that a good internship program is a two-way street – we all have opportunities to learn from each other. As an equity research intern at J.C. Bradford, I was tasked with supporting research in the nascent e-commerce industry. 20+ years later, TRG interns are focused on supporting research better understanding the value chain of the growing AI network buildout. Putting spend into perspective, Meta (META) just this week raised its 2025 capex guide to $66-72B, with 2026 capex expected to reach $100B. Street estimates have the “big 4” (META, GOOGL, AMZN, MSFT) approaching an eye-popping $450B by 2026, with even higher spend spilling into 2027. With the wave of AI investments building in momentum, TRG remains focused on identifying less obvious winners of this multi-year secular trend. One such company, Api Group (AGP), reported earnings this past week. TRG maintains APG is a “winner” for both the build out and maintenance of the AI network. META remains an important national customer of APG, and as such, scale, skill and service will be key to winning business (not just low price), is a key differentiator for APG. Stay tuned for more color from TRG on industrial companies that are winners in the AI build out. So, who was the winner of TRG’s summer ping pong tournament? You guessed it, one of our stellar interns!