WHY ARE THE SEMIS UP THIS MORNING?
Well…a hyperscaler called $Meta Platforms(META.US) just reminded the market how much they are willing to spend on capex:- Meta plans to double its AI computing capacity to 14GW in 2027 and begin manufacturing its in-house Iris AI chip in September, according to Reuters citing an internal memo.- The Iris chip, part of Meta’s MTIA program, is designed with $Broadcom(AVGO.US) Broadcom and manufactured by $Taiwan Semiconductor(TSM.US) TSMC, with the goal of reducing reliance on $NVIDIA(NVDA.US) Nvidia and $AMD(AMD.US) GPUs.- Meta has also secured long-term supply agreements with Samsung (memory), $Sandisk(SNDK.US) SanDisk (flash storage), and Sumitomo Electric (fiber-optic equipment).Once again, the market remembers how much Big Tech is willing to spend and how serious they are about creating their own custom silicon. Trump saying that Iran wants a deal last night + META getting ready to spend even more on capex is likely why the semis are starting to recover.Source: amit
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