00:00Big moves in tech today. We had those giants in the United States.
00:05The first of America's four biggest AI spenders reporting, and it was really all about
00:10that AI spending. We're talking about Microsoft being pressured because of that.
00:15Record surge to that record high when it came to spending. Cloud sales growth slowing down.
00:20Had Meta though rising in the after-hours session, strong forecasts, AI investments also that
00:25go up to $135 billion. IBM also coming out.
00:30And where are they going to spend all of that money for that AI demand?
00:35Well, a lot of them, of course, is to do with Samsung SK Heinex that are supplying.
00:40The chips, the advanced chips necessary to power artificial intelligence.
00:45Strong results coming from Samsung, their chip unit reporting a more than five-fold profit gain.
00:50They also announced a $2.5 billion buyback. SK Heinex...
00:55We're talking in earnings right now, saying that DRAM, NAND inventory is projected...
01:00...to decline further. Remember this attention away towards AI and away from...
01:05...conventional chips is leading to the cannibalization of production in DRAM.
01:10...and NAND. And that's another concern when it comes to memory pricing, something that even Tesla's...
01:15...Elon Musk mentioned was a concern. Let's discuss all of this with Wei Sun, principal AI...
01:20...analysts at CounterPoint Research. Wei, great to have you with us.
01:23So it seems that the new narrative...
01:25...right now around chips, moving away a little bit from HBM4 and into the fact that...
01:30...conventional memory is an issue.
01:34Yes, I think he said...
01:35...very interesting because, you know, the memory chips, they were a smartphone...
01:40...that have the high demand of that and now the AI center, data centers are also...
01:45...doing this kind of, you know, high demands and it's not a temporary trend.
01:50I think it's gonna go through the whole year, maybe the next year as well.
01:55Who are the winners and losers in this new environment?
02:00I think definitely if we look at the AI...
02:05...GIANTS, right? They're spending billions of money on the capex and the investment AI...
02:10...data centers and the chips. So they are doing a strong forecasting of the...
02:15...revenues at the same time, they are kind of doing a huge layoffs on...
02:20...let's say Amazon, these couple of days to reduce the operational expenses...
02:25...I think they're doing their own adjustment and there will be a...
02:28...you know, a winner in the Asia.
02:30...of AI because some of them have the very advanced AI models to be...
02:35...you know, the fundamental layer that will give a global supply.
02:40...to different kinds of applications.
02:44It's also about...
02:45...the supply of chips and we know how China has been trying to secure...
02:50...its own really advanced AI chips or come up with its own.
02:53What do you think China's strategy is?
02:55...and how will that influence investments there?
02:59I think...
03:00...I think China is definitely...
03:02...have been, you know, creating this kind of a sales...
03:05...sufficiency plan on chips and as far as we know, you know...
03:10...it's chips to order to the training and chips to order to the inference...
03:15...stages.
03:16...and I think China is very good at catching up with the chip...
03:20...the development and in terms of the inference...
03:22...so for the application side...
03:25...it has the native local alternative suppliers coming up.
03:30...and being precious to develop more and more cutting-edge chips.
03:34...but...
03:35...still...
03:36...Navidia remains as a very competitive, you know, offering suppliers.
03:40...in terms of having this H200 chips being...
03:45...green-lighted again to China.
03:47...so it's very dynamic.
03:50...a balance that shifts, you know, from moments to moments.
03:53...and right now it's the, you know...
03:55...the tug of war is still on the high.
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