00:00I think the day-to-day volatility will be there. And we're kind of going through a phase where
00:06everyone is trying to figure out the next leg of this AI infrastructure build out and how the
00:13companies would be reporting, especially the hyperscalers. I mean, at the end of the day,
00:17everything comes down to the CapEx numbers for 2027 and 2028. And we'll learn about that when
00:25they report earnings, the hyperscalers. And, you know, there is some profit taking right now,
00:32but overall, I thought the IPO was well-received in terms of, you know, the first day bump that we
00:41saw in terms of a close. And everyone, the long-term investors do think this is a multi-year cycle
00:49for
00:50memory names. And even though they are cyclical and there is a fear around peak earnings,
00:56I think on the whole, everyone buys into this multi-year build out for AI.
01:02It feels increasingly like everyone's taking their cue from the KOSPI, from what happens in Korea,
01:07and that the tail is wagging the dog here. Is that the case, Mandeep? I mean, when you come in
01:13in the
01:13morning, do you look at what's happening in Korea and say, okay, now I have a better picture of what's
01:17going to happen globally because that sets the tone every day? No, I mean, for me, it's just another
01:22data point where, yeah, I look at the futures, I look at how the markets have reacted. But
01:28at the end of the day, there are some data points that weigh a lot more for me. And the
01:35hyperscale
01:36CapEx guide is one of them. And if I know that all these companies are, you know, raising their CapEx
01:44for next year and we are into a third year of a 70% increase in CapEx. And if next
01:49year is going to
01:50be another 50%, then there is not much to worry about, at least for the next 12 to 18 months.
01:56Okay. And it looks like some of those hyperscalers really don't report earnings until the end of this
02:00month. Tomorrow, we're going to get the big banks reporting. We're also going to hear from TSMC and
02:05ASML. Two big, big chip names globally. How do you see that kind of filling the vacuum between
02:13now and when the hyperscalers do report and give us a better picture of their CapEx plans for 2027
02:19and beyond? Yeah. I mean, TSMC reported their monthly number today. And, you know, we are easily
02:26tracking over a 40% increase year over year and the seasonality was better than expected. So when you
02:33look at TSMC's results, which hasn't really used their pricing power, like the memory guys have.
02:39So in the case of memory top line, you see a lot of pricing growth. TSMC, on the other hand,
02:45has been a lot more balanced in terms of volume versus pricing. And it's just a question, like the
02:53durability of TSMC's growth, ASML's growth, and all of these memory guys, whether it's SK Hynix or
03:00Micron, have talked about raising their own CapEx. So that means ASML is a beneficiary of memory CapEx.
03:08And right now, everyone buys into this thesis that you have to keep investing to keep raising their
03:16CapEx just to increase the supply by 15, 20%. And even that would not be sufficient. That's what the SK
03:30will be undersupplied. So the demand growth will outpace 15 to 20% supply growth that these companies
03:38are investing in. Okay. Again, the numbers just blow me away, dude. But I'm going to take what
03:43you're seeing face value. If I'm a meta or Google or Amazon, do I want to put up a big
03:50CapEx forecast
03:52or not? Where are we in that play there? Does the market want to see these guys keep spending or
03:58we
03:58kind of pass that? I think the market wants to see them spending at the same time show some revenue
04:06lift to their top line. So in the case of Meta and Microsoft and Google, they want to see that
04:13cloud
04:13business get a bump. The core ads business get a bump from AI. And the AI contribution has to be
04:21very clear. So like Google cloud growth, for example, has surpassed 50% now expectations.
04:29Why? They were growing. Traditionally, cloud was growing 20 to 25%. That additional 25%
04:35plus growth is coming from AI. So similarly, you want to see that reflected in all the hyperscalers
04:43that are reporting that this is the AI portion. And hence, we are raising our CapEx. And I think
04:48the market will cheer for that. All right.
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