Old West Investment Management Q2 2026 Manager Commentary
Old West Investment Management's Q2 2026 manager commentary discusses the company's performance and investment strategy, highlighting the importance of electricity in AI development and the potential for industrialization in the United States.
Intelligence analysis by Llama
The real constraint on AI is not intelligence, but electricity, and Navitas' chips help deliver it. Old West Investment Management's Q2 2026 manager commentary highlights the company's performance and investment strategy, with a focus on the importance of electricity in AI development and the potential for industrialization in the United States.
Imagine you have a big factory that needs a lot of electricity to run. The factory is like a big computer that uses electricity to do its job. Navitas makes special chips that help deliver electricity to the factory, which is important for the factory to work properly. Old West Investment Management is a company that invests in factories like this and helps them grow.
Analysis
Q2 2026 Performance Highlights
Old West All Cap Opportunity returned -0.94% (net) in Q2 2026. The company's performance was driven by its top contributors, including Navitas Semiconductor, Bruker Biosciences Corp, Nokia Corporation, Tidewater Inc, Core Natural Resources, and Antero Resources Corp.
Top Contributors
Navitas Semiconductor Corporation (NVTS) was one of the best performing semiconductor stocks in Q2. The company makes advanced power chips using gallium nitride (GaN) and silicon carbide (SiC), which convert and deliver electricity with less energy lost as heat. Navitas' chips help deliver electricity, which is the real constraint on AI development. Revenue returned to growth, guidance came in above Wall Street estimates, and Baird more than doubled its price target.
Bruker Biosciences Corp (BRKR) was a detractor last quarter, but that reversed in Q2 after the company introduced new instrument platforms and pointed to growing semiconductor demand. Bruker's instruments are the tools that turn the physical world into data that AI can use, and the market is starting to see it that way too. Bank of America raised its price target from $49 to $65, and by late June the shares were near their 52-week high.
Nokia Corporation (NOK) is one of the last major Western suppliers of telecom and networking equipment. Its business spans mobile networks, IP routing, and, after its acquisition of Infinera, the optical networks that connect data centers. The market began to see Nokia less as an old telecom company and more as critical AI infrastructure. Revenue from AI and cloud customers rose 49% in the first quarter, with roughly €1 billion of orders from those customers. AI data centers need to move huge amounts of data, and Nokia provides the networks that carry it.
Top Detractors
Tidewater Inc (TDW) was a top contributor last quarter, and in Q2 it gave some of that back for one reason: the price of oil. The U.S.–Iran agreement took the war premium out of oil, and Brent fell from a high of $126 back below $80. Offshore stocks trade with oil, so TDW fell from its April highs even though it remained up nicely for the year. The fundamentals have not changed: vessel supply is tight, the global fleet is old, and oil is still well above where the year began.
Core Natural Resources Inc (CNR) declined along with most coal stocks, even though the business performed well: it beat earnings estimates and kept buying back stock. The Department of Energy also selected a CNR subsidiary to build a pilot facility that extracts rare earth elements from coal waste. Electricity demand is rising for the first time in a decade, driven by AI data centers. In our view, coal stocks are priced as if their end markets are dying, and the demand picture suggests otherwise.
Antero Resources Corporation (AR) declined in Q2 for a simple reason: natural gas prices fell back toward $3 as the war premium came out of the market. The business itself performed well, with record production and growing volumes expected through 2026. In our view, natural gas is still priced as if the electricity shortage were not happening: turbines are sold out for years, data center power needs keep growing, and the
Key points
- Old West All Cap Opportunity returned -0.94% (net) in Q2 2026.
- Navitas Semiconductor was one of the best performing semiconductor stocks in Q2.
- Bruker Biosciences Corp was a detractor last quarter, but that reversed in Q2.
- Nokia Corporation is one of the last major Western suppliers of telecom and networking equipment.
- Tidewater Inc declined in Q2 due to the price of oil.
- Core Natural Resources Inc declined along with most coal stocks.
- Antero Resources Corporation declined in Q2 due to natural gas prices.
If the development of AI continues to drive demand for electricity, companies like Navitas and Nokia may see significant growth in their businesses. Additionally, the industrialization of the United States could lead to increased demand for coal and natural gas, benefiting companies like Core Natural Resources and Antero Resources.
However, if the price of oil continues to fall, companies like Tidewater may struggle to maintain their performance. Additionally, if the demand for electricity does not materialize, companies like Navitas and Nokia may see their growth slow down.
