AI compute demand outstrips supply
The bull case for staying fully invested in the technology sector is driven by a persistent imbalance where demand for compute is growing five to six times a year while supply fails to keep pace.
The argument
The guest argued that this structural supply-demand mismatch supports continued explosive profit growth for key tech companies. Despite high price-to-sales valuations historically, the underlying earnings growth of these firms justifies their current market caps.
The thesis, stress-tested
✓ What validates it
- ✓Continued triple-digit or high double-digit earnings growth in upcoming quarterly reports for major tech firms
- ✓Persistent high pricing power for semiconductor and memory chip manufacturers
▸ Risks discussed
- ▸Supply eventually catching up to demand
- ▸Potential valuation distortion if profit growth slows
Hear it yourself
"Real quick, though, I just wanted to revisit, some of the key themes from last quarter and just get your reaction to them. And and no matter whether you were spot on or or totally off the mark, I'd give you a buy for last quarter because, you know, nobody expected the Iran war and the disruptions that it would cause. But if if we can really quickly, I do wanna see where you are on a couple of different things. And if it's in your slide deck, feel free to punt any of these to say, hey. I'll talk about it more in the slides. So last time, you you talked an awful lot about the exploding token"
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