The age of zero interest rate policies (ZIRP) is done, along with the highly speculative techno boom it underwrote. Investors are now confronting a stark new reality: the "growth at any cost" mantra of the 2010s and 2020s has collapsed under the weight of rising rates and dwindling liquidity. The good news is, we’re entering a new investment paradigm—one that’s focused on foundational technologies, green energy infrastructure, and government-supported R&D. The IRA and the CHIPS Act are shooting rockets under this transition. They’re sloshing tens of billions into clean energy and semiconductor manufacturing here in the U.S.

The Rise of Green Energy Manufacturing

At the same time, the U.S. is going through a historic boom in clean energy manufacturing, mostly driven by the IRA. The IRA’s Section 45X tax credit is a crucial and powerful catalyst. The law is projected to catapult $115 billion in clean manufacturing investments by the first quarter of 2025. This resulted in massive expansions in production capacities for both solar and batteries.

Solar module capacity is expected to increase to 61 GW by 2035, underscoring the increasing appetite for clean energy. Solar energy investments have skyrocketed, from $0.9 billion in 2022 to $6 billion in 2024. Companies like First Solar (FSLR) are expanding their thin-film solar capacity to meet this demand, presenting attractive opportunities for investors.

The rapid growth of solar energy has run into bottlenecks. Polysilicon—and consistently making complex things like wind blades at large scale—are still big challenges. Production capacity of polysilicon puts production at 26 GW by 2025. We do need to increase it even more to keep up with increasing demand. Companies such as Sierra Wave Energy are working on developing smart blade tech to solve the wind blade bottleneck.

Battery and Grid Infrastructure

Battery cell production is experiencing a massive boom as companies ramp up new production to meet the skyrocketing demand for energy storage. Battery manufacturing capacity recent projects are on track to produce 1,172 GWh by 2035, meaning a huge recent ramp in battery manufacturing capacity. This expansion is an important step towards supporting widespread deployment of electric vehicles and grid-scale energy storage systems.

Building out the grid to support renewables is a second, equally important area of investment. Utilities such as NextEra Energy (NEE) have made significant investments in these projects, with an aggressive play in grid modernization. These types of projects are critical to ensuring that the renewable energy America needs can be efficiently and affordably transmitted from generation sites to consumers.

Foundational Technologies and Government Support

The CHIPS Act, with its emphasis on semiconductor manufacturing, is another major driver of investment across many foundational technologies. This monumental act invests $52 billion to support U.S. chip manufacturing. Beyond limiting our reliance on foreign suppliers, it would support a 3-5x advancement in domestic production. This new effort is incredibly timely and important. Semiconductors are the bedrock for a multitude of industries, from automotive to consumer electronics.

According to Theodore Quinn, investors should focus on:

foundational technologies, green energy infrastructure, and government-backed R&D. - Theodore Quinn

This extends to companies building breakthrough chips, quantum computers, AI, and other bleeding-edge technologies.

That pipeline-changing focus on foundational technologies is emblematic of a trend away from speculative investments across the board. Gone are the days of cheap capital and “growth at all costs.”

growth at any cost - Theodore Quinn

Investors have turned their focus towards companies with solid fundamentals, established business models and the promise of long-term growth.