Locator: 50186ARCHIVES.
Completely random.
A non sequitur.
Like the blog's disclaimer.
Inappropriately excited about the fourth (sixth) industrial revolution.
When you look at the numbers being thrown about, it's simply amazing.
What's a new oil refinery likely to cost? Three to four billion dollars. How many oil refineries will be built in the US next year? One? Two? I have no idea but I'm sure it will be less than five.
How much does an LDC cost? $20 billion. Compare that to the three to four billion dollars for an oil refinery.
How many LDCs will be built over the next few years? It's anybody's guess but it's gonna be 10x the number of new refineries that will be built in the same time period. [Wow, lousy grammar, but you get the point.]
META plans to add an additional 10 LDCs per year for the next three years. Sounds like a lot. Do the math. 30 / 4010 = 0.7% -- that's less than 1% of existing LDCs in the US right now.
In the past year:
- Texas added: 60
- Ohio added: 16
- Louisiana added 9
These are not empty warehouses waiting to be filled. They are going to be filled with "blades." Very expensive blades. Nvidia and AMD blades requiring a lot of Micron LPPDRAMS.
Much of this stuff fabricated by TSMC whose sales increased 30% y/y in the first two months of this year, if I recall correctly.
I was reminded of all this with the story that came today about Elon Musk's LDC in Mississippi.
Look at the number of LDCs -- compare with the number of LDCs one year ago and how many there are now.
Truly amazing.
What a great time to be a young investor!
