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The Trillion-Dollar Chip War - Why Apple Is Worried About China? · Earn Your Leisure

• 0:00
  Speaker 1: Because, yeah, the China chip market surge. We've been talking
• 0:04
  Speaker 1: about chips for a long time and we've seen them
• 0:06
  Speaker 1: pull back. So hey, what's the deal with the China
• 0:09
  Speaker 1: chip market? Surgeon? Is this something to really be concerned
• 0:11
  Speaker 1: about if your if your portfolio has SMH heavy, or
• 0:14
  Speaker 1: you're in a chip sector heavy, is it time to
• 0:17
  Speaker 1: start being concerned?
• 0:19
  Speaker 2: It's time.
• 0:20
  Speaker 3: I mean you always I wouldn't say concerned, but you
• 0:22
  Speaker 3: should definitely be aware of what's happening. I think a
• 0:24
  Speaker 3: few things happened over the past a couple of days
• 0:27
  Speaker 3: and you might have missed them.
• 0:28
  Speaker 2: So we'll go over the strategically.
• 0:31
  Speaker 3: Esk Heinis signed a five hundred billion dollar deal with
• 0:36
  Speaker 3: in Vidia. Why is that important? Esk Hynis is the
• 0:39
  Speaker 3: leader in high bandwidth memory. They control sixty percent of
• 0:42
  Speaker 3: that market. In Vidia obviously the leader when it comes
• 0:45
  Speaker 3: to GPUs and obviously one of the top customers. What
• 0:48
  Speaker 3: does that do from a strategic standpoint? It makes them say, hey,
• 0:51
  Speaker 3: we're not just a customer anymore. We're gonna have to
• 0:53
  Speaker 3: partner on infrastructure going forward. What does that do for
• 0:56
  Speaker 3: the bottom line for in video? It brings down that
• 0:58
  Speaker 3: cost and it now has a strategic partner that they
• 1:01
  Speaker 3: can build out into the future. I think it's a
• 1:03
  Speaker 3: brilliant idea second piece, and this is important Micron not Micron.
• 1:08
  Speaker 3: Samsung signed a deal, a two hundred billion dollar deal
• 1:12
  Speaker 3: with Broadcom. And why is that important? Well, again, number
• 1:15
  Speaker 3: two in the high bend with the memory sector is Samsung.
• 1:20
  Speaker 3: But part of this deal is not just the memory piece.
• 1:24
  Speaker 3: They've signed it for packaging and manufacturing. So we talked
• 1:27
  Speaker 3: about TSM earlier. With packaging and manufacturing, that is what
• 1:31
  Speaker 3: they do. They're the world leader. It's not even a
• 1:33
  Speaker 3: close second. The fact that Samsung is saying, hey, we
• 1:36
  Speaker 3: wanted to do our own number one loosens the reliance
• 1:39
  Speaker 3: on TSM, but allows Broadcom to have a strategic partner
• 1:43
  Speaker 3: because they are making the custom ASIC silicone for.
• 1:48
  Speaker 2: Google. We're talking about TPUs right.
• 1:51
  Speaker 3: Companies are now saying, hey, in video, the GPU is great,
• 1:54
  Speaker 3: we can't afford it. We want to do this internally
• 1:56
  Speaker 3: and have our AI stack right here within our company.
• 2:00
  Speaker 3: Sits right in that market, so if you're trying to
• 2:02
  Speaker 3: do custom, they can help with the custom pieces.
• 2:04
  Speaker 2: That's a strategic partnership. I love it. What does it
• 2:07
  Speaker 2: say for Micron.
• 2:09
  Speaker 3: Micron has to have a very very calculated next move,
• 2:15
  Speaker 3: and I'll be interested to see what that partnership is.
• 2:18
  Speaker 2: Does it mean the end for them? Absolutely not.
• 2:20
  Speaker 3: They are still one of Nvidia's biggest customers because the
• 2:23
  Speaker 3: bandwidth memory demand.
• 2:25
  Speaker 2: Is very high.
• 2:26
  Speaker 3: So I think overall, has the demand change, No, has
• 2:29
  Speaker 3: a story changed. No, there are strategic moves that are
• 2:32
  Speaker 3: happening inside of the book though. Now this is why
• 2:35
  Speaker 3: I got a little bit of intellectual smoke for Apple,
• 2:40
  Speaker 3: because they did something. There's a report allegedly it was
• 2:44
  Speaker 3: in the journal yesterday. We're saying that there's a fight
• 2:48
  Speaker 3: between Micron and Apple. And the reason was Apple was saying, hey,
• 2:52
  Speaker 3: we have to raise our prices on our next age
• 2:55
  Speaker 3: of devices because the memory shores and the fact that
• 2:59
  Speaker 3: they've scaled price is going to affect our bottom line.
• 3:02
  Speaker 3: And I said, okay, that's interesting, right. The company that
• 3:05
  Speaker 3: used to dictate to people, Hey, whoever has the lowest price,
• 3:08
  Speaker 3: that's who we're going with. And so you were a
• 3:11
  Speaker 3: bully for ten years. You chose I'm gonna use asking Hiane,
• 3:15
  Speaker 3: So I'm gonna use Samsung, I'm gonna use Micron. Whoever
• 3:18
  Speaker 3: gives me the best deal I'm going with. The tables
• 3:20
  Speaker 3: have now flipped. Now they create the price, and now
• 3:22
  Speaker 3: they're saying, hey, well, how come you're charging that much?
• 3:26
  Speaker 3: In fact, you're charging so much. Now we have to
• 3:28
  Speaker 3: charge our customers more. That was the first piece. The
• 3:30
  Speaker 3: next piece was that again allegedly, and Tim Cook and
• 3:34
  Speaker 3: the Apple officials have gone to the White House say look,
• 3:39
  Speaker 3: we either we either need to figure out what they're
• 3:42
  Speaker 3: spending this money on because their profit margins are so high.
• 3:46
  Speaker 3: Either they're keeping it or they they're price scouging. This
• 3:49
  Speaker 3: is what their claim is on Micron. Because of that,
• 3:51
  Speaker 3: they've asked now the President's team to allow American companies
• 3:56
  Speaker 3: to buy Chinese memory chips.
• 4:00
  Speaker 2: Why is that important?
• 4:01
  Speaker 3: Well, if the Americans are allowed, the companies allowed to
• 4:04
  Speaker 3: buy a cheaper chip, right, which now becomes a quote
• 4:06
  Speaker 3: unquote national security issue. Is the reason why Nvidia couldn't
• 4:10
  Speaker 3: sell there, right, And now China said we're not allowing
• 4:13
  Speaker 3: you to sell and we're not even going to buy.
• 4:16
  Speaker 2: That changes the dynamics. So either the White.
• 4:18
  Speaker 3: House is going to have to decide allow Apple to
• 4:20
  Speaker 3: buy and allow other American companies to buy. At the
• 4:23
  Speaker 3: court of an American company like Micron.
• 4:25
  Speaker 2: So Micron, you can't do that.
• 4:27
  Speaker 1: You're talk about before as far as some people were saying,
• 4:30
  Speaker 1: sixteen hundred dollars yep, is that?
• 4:32
  Speaker 2: How do you feel about that?
• 4:33
  Speaker 1: Right now?
• 4:33
  Speaker 2: I'm still at that number. I think sixteen hundred is
• 4:35
  Speaker 2: still the number by the end of the year. Still
• 4:37
  Speaker 2: feel comfortable with sixteen A couple of reasons. Why all
• 4:41
  Speaker 2: those things I just said to you tells me that
• 4:42
  Speaker 2: the demand hasn't gone anywhere. Right.
• 4:44
  Speaker 3: If the demand hasn't gone anywhere, and they're sold out
• 4:46
  Speaker 3: to twenty twenty six and potentially sold out to twenty
• 4:48
  Speaker 3: twenty seven, that story doesn't change. Do I think an
• 4:51
  Speaker 3: administration will allow a company like Apple to buy from
• 4:54
  Speaker 3: a Chinese manufacturer.
• 4:56
  Speaker 2: When it comes to that, it will be financial fucking.
• 4:58
  Speaker 3: Treason exactly now if they don't allow it. Now, what
• 5:01
  Speaker 3: happens to Micron? Right once they say that you can't
• 5:04
  Speaker 3: do it? Well, back to the price that you're going
• 5:06
  Speaker 3: to pay until we figure out this bottlenecked situation. Now
• 5:09
  Speaker 3: c x mt IPO today it ran up four hundred
• 5:13
  Speaker 3: and fifty percent.
• 5:14
  Speaker 2: Why is that point?
• 5:15
  Speaker 3: Well, the Chinese are saying we're not going to use
• 5:18
  Speaker 3: your memory, Samsung, we're not going to use your memory SKX, Micron,
• 5:21
  Speaker 3: We're not using yours.
• 5:22
  Speaker 2: We'll build our own. And we just went over this.
• 5:25
  Speaker 3: When you're talking about building at scale, that takes time.
• 5:28
  Speaker 3: When you're talking about building with efficiency, that takes time.
• 5:31
  Speaker 3: Right now, these chips will only be used by government officials.
• 5:36
  Speaker 3: They're not selling these to companies. It takes money to
• 5:38
  Speaker 3: build an infrastructure. When you talk about capitals that's being raised.
• 5:43
  Speaker 3: Think about how much money Micron is now worth. A
• 5:46
  Speaker 3: year ago it was a two hundred billion dollar company.
• 5:48
  Speaker 3: This year it touched a trillion. This company IPO today
• 5:51
  Speaker 3: it hit eight billion. It was the largest land company
• 5:54
  Speaker 3: in the country for the semiconductor space at eight billion.
• 5:58
  Speaker 3: Do you think they have the scale to build out
• 6:00
  Speaker 3: infrastructure to now compete with trillion dollar companies?
• 6:02
  Speaker 2: Not yet, So we just got to be mindful of that.
• 6:06
  Speaker 4: The only people who are worried about the destruction of
• 6:09
  Speaker 4: SMAH and Micron or the people who are trading it
• 6:11
  Speaker 4: and not holding it. The value of the chips. I mean,
• 6:17
  Speaker 4: I love the clip before we even did Market Monday's
• 6:20
  Speaker 4: AMD and videos talked about in twenty twenty, you can
• 6:23
  Speaker 4: calculate the returns from there. That's the power of long
• 6:26
  Speaker 4: term holding. Do I think Micron will come down some more?
• 6:30
  Speaker 2: Yes?
• 6:31
  Speaker 4: Do I think that the company is incredibly valuable, Yes,
• 6:34
  Speaker 4: But the only people who are worried about it are
• 6:36
  Speaker 4: in the trade of it and not holding the stock.
• 6:40
  Speaker 4: This is not trading fucking Thursdays to us change for
• 6:45
  Speaker 4: market Monday. To hold the equities forever, hold forever.
• 6:51
  Speaker 3: But again, the vision for them is not can we
• 6:54
  Speaker 3: win July November, December. China's vision is can we win
• 6:59
  Speaker 3: in the next decade twenty years from now?
• 7:02
  Speaker 2: Right? Can we build our own stack and be self reliant.
• 7:05
  Speaker 3: We don't need South Korea, we don't need Taiwan, we
• 7:08
  Speaker 3: don't need America.
• 7:09
  Speaker 2: Can we do the independent? Yep? And that they also
• 7:12
  Speaker 2: got twenty years from now, not today.
• 7:15
  Speaker 4: But if you want to know what the market is
• 7:16
  Speaker 4: going to fall to an event, the months in advans
• 7:18
  Speaker 4: go to ininvest dot com and joint stock club prices
• 7:21
  Speaker 4: are I think I put out one hundred and twenty
• 7:23
  Speaker 4: prices and more to com.
• 7:24
  Speaker 2: You want to know when stock club stocks if.
• 7:28
  Speaker 4: You want to know what they do and get out
• 7:30
  Speaker 4: any contagion event that's going to and the other thing.
• 7:32
  Speaker 2: Y'all listen to too many people.
• 7:33
  Speaker 4: I'm not gonna fix any mistakes from anybody who didn't
• 7:36
  Speaker 4: make their millions from this.
• 7:38
  Speaker 2: Sorry.
• 7:39
  Speaker 4: So, whoever fucked up your portfolio, this is me talking.
• 7:41
  Speaker 4: Whoever fucked up your portfolio. Don't come to me and
• 7:44
  Speaker 4: say we'll fix this with your weekly rotation. Bullshit. Now
• 7:49
  Speaker 4: he got to be diplomat. I'm rockefellow. I don't have
• 7:53
  Speaker 4: time for it. If you fucked up your portfolio elsewhere,
• 7:57
  Speaker 4: then go to the person who fucked them up and
• 7:59
  Speaker 4: tell them to fix it. I've been telling you the
• 8:02
  Speaker 4: no stock or no sector goes up nineteen perpetuity, y'all
• 8:09
  Speaker 4: are you gambling? And even with the person say somebody
• 8:12
  Speaker 4: stole your money, y'all thought it was because I made
• 8:15
  Speaker 4: it look easy.
• 8:16
  Speaker 2: Y'all thought it was a bunch of means. It's not.
• 8:19
  Speaker 2: It's not.
• 8:21
  Speaker 4: I'll bunk record my ship. I was free when y'all
• 8:23
  Speaker 4: met me. I'm the only one who said I'm still
• 8:26
  Speaker 4: still staying on it. You go back to the early episodes.
• 8:28
  Speaker 4: What I loved then, I love now. You have to
• 8:32
  Speaker 4: hold for a long period of time. But some of
• 8:35
  Speaker 4: y'all don't want to hear it, and if you don't
• 8:36
  Speaker 4: want to hear it.
• 8:37
  Speaker 2: That's fine.
• 8:38
  Speaker 4: One day I'm a car shot bowed offer.
• 8:42
  Speaker 2: Up here.
• 8:45
  Speaker 4: Sometimes like okay, even David Stared and MJ had a
• 8:48
  Speaker 4: tumultuous little relationship, right, They made Mike sit down.
• 8:53
  Speaker 2: Okay, but then when Mike came back, he said, well,
• 8:55
  Speaker 2: you saw my values when we left. Allegedly the pipping
• 8:59
  Speaker 2: bulls shot the pip love you. I know you danguished.
• 9:04
  Speaker 4: It's different when Jordan in the league, and different when
• 9:05
  Speaker 4: he leading the team versus Scottie is doing it. I
• 9:08
  Speaker 4: am begging y'all also to the other part, and I
• 9:10
  Speaker 4: hate the part in light of Dui going away. There
• 9:13
  Speaker 4: are a lot of African American people who are paid
• 9:15
  Speaker 4: agents of the state to.
• 9:18
  Speaker 2: Tear down certain movements. I proved that before. Oh yeah,
• 9:22
  Speaker 2: the state wilder than ever. I didn't say that.
• 9:26
  Speaker 4: I said to state anyway, the state, so well, do
• 9:29
  Speaker 4: what y'all want. After investments, I'm going to be gone,
• 9:34
  Speaker 4: so