Big companies are announcing huge layoffs.
$AMZN to cut 30,000 jobs, $META potentially 15,000 jobs.
$ORCL, $XYZ, $CRM, $ASML,… all announced cuts as well.
It’s not that those companies are doing badly financially, they report record earnings with growing margins.
They all expect a lot from AI. What we saw from perplexity yesterday is a first glimpse of what AI will be able to do in the near future.
With jobs being cut, more and more money will flow towards R&D and more importantly the CapEx.
Everyone is investing in AI and those numbers will only increase.
We are still in the early stages of AI and the supply chain is still evolving. There are some major bottlenecks forming that are slowing down the progress of AI.
The most profitable companies are spending billions to make sure they can control these bottlenecks. This creates possibilities for investors.
The major bottlenecks at the moment:
- Memory and HBM: SK Hynix, Samsung Electronics, $MU
- Packaging and OSAT: ASE Technology, $AMKR, JCET Group
- Server and Rack Integration: $SMCI, $DELL, $HPE, Foxconn
- Networking Silicon: $AVGO, $MRVL, $CSCO, $ANET
- Photonics and Optical Components: Ayar Labs, $ALAB, $CRDO, $COHR, $LITE
- Power, Thermal management and Grid: $VRT, $MOD, $NVT, $SU.PA, $IREN, $NBIS, $CIFR
No financial advice