Locator: 48686CHIPS.
AI: more proof, if you needed any, for investors, the story is real.
These companies have a lot of money and are consolidating -- this is like the Bakken boom. During the early stages of the boom, time is money and companies need to be fast to stake what they need. Later on, in the manufacturing stage, after the boom itself, deals will be fewer in number and it takes longer to close for many reasons. Earlier in the AI boom, the Mag-7 bought a lot of the upstarts, but now it's the second-tier companies that are buying upstarts, let's call these second-tier companies the Next-33. 33+7 = Coatue's Fantastic 40.
NVDA: look at this -- this is huge --
I don't think folks get it. Chips don't equal chips -- first of all there are at least four main classes: CPUs, GPUs, storage; and NPUs. Those four classes are not interchangeable. To some extent, within a class, chips made by one company are interchangeable with chips made by another company, and a lot of folks feel there may not be a lot of difference. I don't know. But once someone has "name recognition," let's say Nvidia, even if AMD's chips are just as good, a lot of folks are going to go with Nvidia vs AMD simply due to "name recognition." Sort of like Hertz and #2 Avis in the old days. And, exactly like brand name Coca-Cola and generic cola.
TSMC: link here to Beth --
