00:00You see that in European trading with ASML. You see it carried over into the U.S. session.
00:04But the market's paying close attention to what China is capable of doing in its domestic chip
00:09industry. Yeah, that's right. And as you know, as you've talked about many times on this show,
00:16we've had these valuations in the AI industry that have gone up and up and up and up. And now
00:20we're seeing them start to come back down with some additional momentum, as you were referring
00:25to earlier. I think there are a few different areas where we've seen causes for concern.
00:29Part of it is CapEx spending. We saw Alphabet report last week. They said they were going to
00:33raise their CapEx. That hit their stock pretty hard. A few months ago, that would have helped
00:38their stock. And in fact, this time it was the reverse. I think when it comes to the China
00:42competition, there are concerns on a number of different fronts. Moonshot, of course,
00:46gave us a wake-up call that the AI models in China are very good. It's not just DeepSeq.
00:50You also have Moonshot. You have Alibaba. You actually have quite a few of them that are very
00:54strong. There was this report that you're alluding to that the Chinese are actually
00:58making progress in lithography, the machines that are used to make chips. That would hit
01:02ASML in particular and may be able to provide more cost-adventageous machines for China.
01:09And then on top of that, you had CXMT go public this week. I think this we maybe haven't talked
01:13about enough. This is really the fourth big memory chip maker out there. It's going to compete
01:18with SK Hynix and Samsung. It went public this week in China. Their market value is $460 billion.
01:27It's already the most valuable company listed in China. It may soon become the most valuable
01:31listed Chinese company any place. So that's putting pressure on SK Hynix and Samsung and
01:36Micron in particular, these stocks that have just been on a tear recently. So add that up,
01:41and there are some concerns.
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