EdmundK

More custom silicon and rack options means AI infra gets commoditized and deployed everywhere. Google with “Frozen v2” and AMD with Helios on Azure lowers cost per token, so usage explodes. Nvidia still sells the most GPUs, but TSMC, power, cooling, and networking all win bigger. This isn’t anti-Nvidia, it’s pro-AI scale.

Nvidia built the picks and shovels, but Apple sells to the miners. In every tech cycle, the companies that actually sell to consumers at 30%+ margins win last. With on-device AI, Siri upgrades, and services, Apple gets AI upside without $100B capex. Market is starting to price that in.

Markets hate uncertainty, not growth. TSMC raising capex to meet demand is proof the AI buildout is accelerating, not slowing. Yes margins take a hit short term, but whoever owns the most advanced capacity wins for the next 5 years. This selloff is a gift to add to AI winners.

Memory is cyclical and SK Hynix just had a massive run. Cooling inflation lets the Fed stay patient, which is good for growth stocks long term. Money is probably rotating from memory to AI software and power/cooling names. The AI hardware buildout isn’t over, it’s just broadening out beyond HBM.

If clients are yanking budgets from software to buy scarce GPUs, servers, and memory, that’s a real rotation. In early AI cycles hardware gets funded first, software monetizes later. IBM’s drop is the canary. I’m shifting toward semi and server names and cutting software exposure until revenue shows up.

CPI tonight comes in cooler and Waller’s hike talk is just Fed credibility management. They’ve done enough. With inflation trending down and growth slowing, the next move is still a cut in Q4. I’m buying the dip in duration and tech into that pivot.

Chips bouncing out of a bear market in 2 days while headlines are this bad shows how structural AI demand is. Geopolitics can’t kill the capex cycle. This dip was a gift and the market is telling us the AI trade has real staying power into H2.

This isn’t just valuation. China’s own AI models and cloud push are finally monetizing, and Alibaba is the proxy. With US chips pausing and Beijing easing, money has a reason to stay. I’m calling this the start of a 6-12 month leadership flip, not a 1-day squeeze.

Samsung just printed record profits, so demand isn’t dead. Memory chips going bear while AI capex keeps ramping feels like a sector rotation shakeout, not an AI top. I’m using this to add because HBM and datacenter memory still have years of runway.

$58B operating profit, up 19x in a year, isn’t luck. That’s HBM + AI server demand blowing through estimates. If Samsung is printing this with memory pricing still rising, the supercycle isn’t peaking yet. I’m buying the confirmation and holding for the next capex wave.

∼$27B of forced buying into a tiny float is real fuel, not just hype. Index inclusion days often run hard because funds have to buy no matter the price, so I’m chasing the pop with tight risk and riding the liquidity wave.

Micron -8% and SanDisk -10% on a DRAM lawsuit looks like headline risk, not broken demand. Meta +10% on cloud/AI spend shows the trade’s still alive, so I’m using this semis washout as a dip to buy.