00:00So clearly for both of these companies I just mentioned, benefiting in a big way from the AI demand.
00:05Absolutely, there's no question.
00:06And if there were any doubt about the sustainability of this AI trade
00:12and the demand for all that infrastructure that each company is producing, it was erased today.
00:18AMD gave a forecast that was well above estimates for the coming quarter, came in at $11.2 billion.
00:25Sales had been projected at $10.5 billion, according to the consensus of an analyst survey by Bloomberg.
00:33And likewise for Supermicrocomputer, their projections for earnings and for sales
00:38all came in well ahead of what had been projected beforehand.
00:43And for them in particular, this removed perhaps some of the shadow of the indictment of a co-founder
00:50and two others associated with the company for allegedly violating U.S. export control regimes.
00:56And the company, of course, has denied any wrongdoing in that case.
01:01Taken together, the AMD results and Supermicros really do point to how the trade in this
01:07is not only being driven by the big hyperscalers, the hyperscalers demand for infrastructure
01:13with the CapEx promises that we saw last week from the four biggest publicly traded companies,
01:18Amazon, Meta, Google, Microsoft, pledging to up their CapEx for next year,
01:25through the end of the year, to $725 billion,
01:29really indicates that there's a lot of strength in this for the infrastructure makers.
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