Semiconductors: The Hottest Commodity On Earth (Or At Least Trading Like It)

The Razor’s Edge

The chip sector has been Hansel-level hot to start 2024. AMD and Nvidia have jumped 14% and 21% respectively in 2024, the SOXX ETF is up 8% in the last week, and the AI theme of 2023 is still driving things to start 2024.

What does this say about the sector, and why is it like being a favorite to win the Super Bowl? We discuss the excitement, the build out of AI, the usage, and how that all converges into questions for chip stocks.

This is the first of two episodes this week, with the second on a couple different topics, watch for that Thursday or Friday.

Referenced article: https://the-razors-edge.ghost.io/razors-edge-nvidia-pide-piper-baidu-bumblings/

Referenced presentation/tweet: https://twitter.com/akramsrazor/status/1745029272140456325

Topics Covered

• 6:00 minute mark – Chip party
• 10:30- AMD’s spark
• 16:00 – The internet bubble comparison
• 21:00 – Feeling Peakish
• 24:30 – Hyperscalers data center build out and what could go wrong for Nvidia
• 34:00 – Apple’s Siri as an example of how AI will benefit us, vs. a new hardware assistant
• 45:30 – Are there any winners in a great AI software convergence
• 52:30 - Why it matters for chip stocks