AMD captures overflow AI chip demand
The guest argued that AMD is a major beneficiary of the AI infrastructure build-out because demand is too vast for Nvidia to satisfy alone.
The argument
While skeptical of the profitability of customer-facing AI applications, the guest remains bullish on hardware providers and infrastructure companies supporting data centers. He noted that AMD is capturing a significant slice of the market due to Nvidia's capacity constraints.
The thesis, stress-tested
✓ What validates it
- ✓AMD reporting market share gains in AI chip sales
- ✓Sustained high data center capital expenditure guidance from major cloud providers
▸ Risks discussed
- ▸Slowing capital expenditure from major tech firms
- ▸Customer-facing AI applications failing to generate expected returns, leading to a hardware spending slowdown
Hear it yourself
"are not money market funds. They're not designed to give you liquidity whenever you want. So that's that's really the issue, I think, Julia. Mhmm. Because, yeah, as you point out in the wrap this week, gosh, we had a lot of new headlines, but we had, BlackRock's TCP Capital markdown. Yep. We had Apollo's plan for daily, full valuations by September. I guess the question is, like, do investors really even care? Like, what's your read on this? Like, is private credit still a systemic risk? Like, what's really going on? No."
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