AI hardware demand defies macro headwinds
The guest argued that existential AI competition makes semiconductor and memory chip spending highly inelastic to traditional macro pressures like rising interest rates and a strong US dollar.
The argument
Joe Weisenthal noted that despite currency fluctuations and high rates, global buyers will continue shipping massive capital to Taiwan and South Korea for critical AI infrastructure.
The thesis, stress-tested
✓ What validates it
- ✓Continued capital expenditure growth in big tech earnings reports
- ✓Sustained high export volumes of advanced chips from Taiwan and South Korea
▸ Risks discussed
- ▸Severe global economic recession dampening overall tech budgets
- ▸Geopolitical escalation directly impacting Taiwanese foundries
Hear it yourself
"Yeah. It's a pretty big deal. And, again, it stands in stark contrast to a lot of the developed nations like The US that are really digging into their stockpiles. You know, I don't know if you guys have noticed in your time here the prices at gas stations. Do you know how much gas in Hong Kong cost? No. No. About 33 Hong Kong dollars per liter, which is its equivalent of about $16 per gallon. Wow. Wow. Right? That's up about 15% since the Iran war began, and diesel prices have actually jumped to, like, near 50%. And"
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