Latest / Earn Your Leisure / Wall Street Insider Exposes The Private Equity Crisis (And The Next Massive AI Boom)

Transcript

Wall Street Insider Exposes The Private Equity Crisis (And The Next Massive AI Boom) · Earn Your Leisure

0:00
Speaker 1: So let's talk about ETF and as totality, because obviously
0:06
Speaker 1: your ETF strategies. So for people, let's start it. Let's
0:09
Speaker 1: start at this level, right, for people that are just
0:12
Speaker 1: getting into the stock market or people that's already been
0:15
Speaker 1: in the stock market, what, in your opinion makes ETFs
0:18
Speaker 1: attractive and why should people consider ETFs as opposed to
0:23
Speaker 1: just having all of that money invested in just individual stocks.
0:27
Speaker 2: Okay, so that's perfect. So so my point of what
0:30
Speaker 2: I was saying is like the ETF investment vehicle is
0:33
Speaker 2: just innovation to the entire space of investing. The most
0:37
Speaker 2: important thing for people to understand and know is they
0:42
Speaker 2: can get the same level of professional advice and exposure
0:46
Speaker 2: through the ETF rapper that they used to get with
0:47
Speaker 2: mutual funds, and you get to building more precision into
0:53
Speaker 2: what you want to hold and investments. So here's my
0:56
Speaker 2: example to the question that you guys were talking about before.
1:00
Speaker 2: The concentration of the S and P five hundred today
1:03
Speaker 2: forty percent is basically your mag seven of the S
1:06
Speaker 2: and P five hundred you're talking there's five hundred or
1:09
Speaker 2: so plus names in that. When you look at the queues,
1:12
Speaker 2: the exact same thing the concentrations north of forty five
1:15
Speaker 2: fifty percent and information technology. The market right now is
1:20
Speaker 2: priced in for perfection, meaning everyone's everyone knows what's going
1:25
Speaker 2: to happen with the AI trade. Most companies have basically
1:29
Speaker 2: provided guidance on what they're doing and why they're doing it.
1:32
Speaker 2: But if I'm a general person and I'm concerned about
1:34
Speaker 2: what's going on in the market, and there's a slight
1:37
Speaker 2: miss on any of those top companies, that will have
1:40
Speaker 2: a material impact on the overall index, both the S
1:43
Speaker 2: and P five hundred and the cues. So if I'm
1:46
Speaker 2: a general person just starting out and I say, you
1:48
Speaker 2: know what, I want to buy these same companies that
1:50
Speaker 2: everyone's talking about, you can just buy the index. I
1:52
Speaker 2: don't need to trade the individual securities on a day
1:54
Speaker 2: to day basis. So that's why the ETF is so important.
1:57
Speaker 2: More more importantly, though, it's completely trand parent. You know
2:01
Speaker 2: exactly what's inside of these investment vehicles right that that's
2:05
Speaker 2: critical for people to say, Okay, I know exactly what
2:07
Speaker 2: I hold, then I'll give you another opportunity to think
2:11
Speaker 2: about something else. Because it's so transparent, I can see
2:14
Speaker 2: what other companies that might be on the up and
2:17
Speaker 2: coming that I want to trade in the future that
2:20
Speaker 2: you may not be privy to that that even falls
2:22
Speaker 2: into a specific sector. So I just think like the
2:25
Speaker 2: etf rapper should be seen as innovation to the entire industry,
2:30
Speaker 2: and it creates space for the retail investor to participate,
2:34
Speaker 2: if that makes sense.
2:36
Speaker 1: Let me just because you just said something that was insightful,
2:40
Speaker 1: because when I used to be a financial advisor and
2:42
Speaker 1: do a lot of mutual funds, are mutual funds essentially over.
2:49
Speaker 3: The same thing nobody even talk about try to explain.
2:53
Speaker 3: I'm like, you know, what is no point?
2:54
Speaker 2: I mean, look for from an industry perspective, most asset managers,
2:59
Speaker 2: do you guys hear that? That was Most asset managers
3:04
Speaker 2: are not launching new mutual funds. Very seldom do you
3:08
Speaker 2: see a money manager say I'm going to launch a
3:09
Speaker 2: mutual fund, and it's because of the structure. So here,
3:13
Speaker 2: let me just break down a couple of things of
3:14
Speaker 2: the mutual fund that makes it a little more archaic.
3:17
Speaker 2: So one, if I'm an investor of a mutual fund,
3:20
Speaker 2: and let's just say the mutual fund has ten million
3:23
Speaker 2: dollars in it and a large investment or a trade
3:26
Speaker 2: comes in to sell a million dollars, so you're talking
3:28
Speaker 2: about a tenth of the overall assets need to be
3:32
Speaker 2: sold to liquidate. What happens is whatever positions that are
3:36
Speaker 2: held in that mutual fund, the gains or losses will
3:40
Speaker 2: need to be sold in the fund, and then those
3:43
Speaker 2: are passed off to the investors. Well why does that
3:46
Speaker 2: matter or why is that important? Well, if I didn't
3:48
Speaker 2: sell my fund, I don't want to pay capital gains
3:50
Speaker 2: on an investment that I was hoping like could be
3:53
Speaker 2: more tax efficient. So historically the mutual fund provided exposure,
3:57
Speaker 2: institutional management fees, and all these benefits that we typically
4:02
Speaker 2: didn't have. But now the innovation of the ETF, because
4:06
Speaker 2: of the structure of it, it's more tax efficient. People
4:09
Speaker 2: don't need to participate in the buying and selling of
4:12
Speaker 2: other people in the fund. More importantly, fees have come down.
4:15
Speaker 2: And then to your point, transparency. There's another important aspect
4:19
Speaker 2: of it, belowed because mutual funds actually report like thirty
4:22
Speaker 2: days or sixty days or even a quarter behind to
4:25
Speaker 2: show what securities they hold. That was one of the
4:28
Speaker 2: benefits of the money managers. So we kind of have
4:30
Speaker 2: seen basically passing of the torch. I don't want to
4:33
Speaker 2: say that they're completely dead, but it's a passing of
4:36
Speaker 2: the torch. That the ETF is a more efficient vehicle
4:39
Speaker 2: for the future.
4:41
Speaker 3: I agree with you, and I like what you said
4:43
Speaker 3: about finding new companies. I remember going inside of SMH
4:46
Speaker 3: maybe six years ago and just looking at the allocations
4:49
Speaker 3: and that's what you understand, Well, what is tsm Oh,
4:51
Speaker 3: let me go study what that company is because it's
4:53
Speaker 3: the number two allocation. Oh wait, wait, taxis instrument. Wait
4:56
Speaker 3: I used to do that as a calculator, Like, oh,
4:58
Speaker 3: that's good. And so you start finding company ETFs have
5:01
Speaker 3: I mean just blown up. I mean they're they're everywhere.
5:05
Speaker 3: What's at the forefront of a lot of people's minds
5:07
Speaker 3: right now, these leveraged ETFs we talked about a little earlier.
5:10
Speaker 3: We talked about South Korea. People will tell you it's
5:12
Speaker 3: too risky from europe expert opinion. Is there a way
5:16
Speaker 3: that they can be used in a beneficial manner?
5:19
Speaker 4: Yeah?
5:19
Speaker 2: Absolutely, So first is I think we need to just
5:22
Speaker 2: answer what is a leverage and an inverse product? Right
5:26
Speaker 2: to tell people and give them like scope of what's
5:28
Speaker 2: going on. And then the second thing is we need
5:30
Speaker 2: to just cover the entire ETF ecosystem and in totality.
5:34
Speaker 2: So I'll start with the second question and then dive
5:36
Speaker 2: into the inverse. So one, there are fifty five hundred
5:39
Speaker 2: ETFs in the market. Fifty five hundred. That's more than
5:43
Speaker 2: the publicly traded stops that are out there. Let's just
5:45
Speaker 2: be clear about that. So how do you determine which
5:48
Speaker 2: one is the appropriate one for you? So that's a
5:49
Speaker 2: big question. The second thing is ETFs are pulling in
5:54
Speaker 2: around one point two to one point five trillion dollars
5:57
Speaker 2: a year. That means people are allocating a lot more
6:00
Speaker 2: to ETFs than they've ever done before in history. So
6:04
Speaker 2: because of that, now we say, well, how many issuers
6:07
Speaker 2: are in the place in the marketplace like the black
6:09
Speaker 2: Rocks of the world or the direction ETFs. There's about
6:12
Speaker 2: five hundred ETF issuers that are coming in and they're
6:16
Speaker 2: launching products for people to invest in. So that's the
6:18
Speaker 2: size scope of the market. When it comes to leverage
6:21
Speaker 2: and inverse space. They've basically launched back during the financial crisis,
6:26
Speaker 2: and they were basically built for banks and institutional investors
6:30
Speaker 2: and traders, right so they were liquidity trading tools. They've evolved, really,
6:36
Speaker 2: I would say up until I would say, what is
6:40
Speaker 2: it twenty twenty when the whole COVID situation happened and
6:43
Speaker 2: retail really came to market. So what we call LNI
6:47
Speaker 2: or leveraged an inverse. There's only about five hundred levered
6:51
Speaker 2: ETFs in the market and maybe about one hundred and
6:54
Speaker 2: twenty inversed ETFs in the market. And the way that
6:57
Speaker 2: these products are structured. I'm going to say some terms
7:00
Speaker 2: that I don't want to lose people. I know you
7:01
Speaker 2: guys get it, but I don't want your audience to
7:03
Speaker 2: lose it. We're going to just talk about derivatives for
7:05
Speaker 2: a moment. Everyone knows derivatives because they trade options. I'm
7:09
Speaker 2: sure your audience, you guys have done a phenomenal job
7:11
Speaker 2: of educating people they trade options. The second derivative that
7:14
Speaker 2: people should know about is futures. Well, a lot of
7:17
Speaker 2: people trade futures, so I don't think that's too complex
7:19
Speaker 2: for people either. The third one, which is not talked
7:22
Speaker 2: about as much, and why levered ETFs make a lot
7:25
Speaker 2: of sense for people, is because we use swaps. Swaps
7:30
Speaker 2: are institutional bank contracts, or basically an agreement between two
7:34
Speaker 2: counter parties that one pledges to get exposure through the
7:39
Speaker 2: contract of said underlying security. However, you don't have to
7:43
Speaker 2: commit so much capital to get that exposure. So an
7:46
Speaker 2: example would be our SpaceX two X levered etf loft loff.
7:51
Speaker 2: We basically have a swap counter party. They give us
7:55
Speaker 2: and pledge us basically two x exposure to SpaceX. However,
7:59
Speaker 2: we don't have to commit all of the capital to
8:01
Speaker 2: buy a bunch of SpaceX to get that exposure. Does
8:04
Speaker 2: that make sense? So why is that important is because
8:08
Speaker 2: what we've seen is the explosion of sector and single
8:13
Speaker 2: stock ETFs because people really want to lean into the
8:17
Speaker 2: concentration opportunities that you guys were just talking about before.
8:20
Speaker 2: Can I get two X exposure on Microsoft? Can I
8:22
Speaker 2: get two X exposure on Nvidia? Can I get two
8:25
Speaker 2: x exposure on Micron? Because I've been following the trading pattern,
8:28
Speaker 2: I see what the opportunity is. I believe these levels
8:31
Speaker 2: from a technical perspective make a lot of sense. But
8:33
Speaker 2: now let me really show the precision of my conviction
8:37
Speaker 2: in this trade. So an example would be last week
8:41
Speaker 2: when Micron reported we have two. We have a two
8:45
Speaker 2: x levered Micron ETF as well as an inverse ETF.
8:49
Speaker 2: Just giving you raw numbers here, Micron was up fourteen percent.
8:53
Speaker 2: That ETF that we had was up twenty eight percent.
8:56
Speaker 2: So if you said, hey, Micron going in Micron was
8:59
Speaker 2: going to beat earnings, but you really wanted to lean
9:00
Speaker 2: into that trade, you could actually had an ETF to
9:02
Speaker 2: get you the exposure that you wanted and the performance
9:05
Speaker 2: that you probably were looking for. Now, those products, meaning
9:08
Speaker 2: levered in inverse, they are designed to be daily traded products.
9:13
Speaker 2: I want to be very clear the education daily traded.
9:16
Speaker 2: They are not designed to be held, bought and held
9:19
Speaker 2: like long term investment solutions, because there are other risks
9:22
Speaker 2: associated with them. Because the leverage that you exposure on
9:24
Speaker 2: the way up is the same leverage that you exposure
9:27
Speaker 2: that you get on the way down, and I think
9:29
Speaker 2: the audience should be familiar with that no matter what
9:32
Speaker 2: inverse or leverage product they buy.
9:38
Speaker 4: In your opinion, on the institutional side, between let's say
9:41
Speaker 4: AI crypto space private equity, which theme do you think
9:46
Speaker 4: is most over question private equities? Right now, it's.
9:50
Speaker 2: Not even a question. So here's here's why. Here's why
9:54
Speaker 2: so private equity right now, a lot of the firms
9:56
Speaker 2: are are basically seeking additional capital through loans to pay
10:02
Speaker 2: back investors because they need to meet redemptions. So a
10:06
Speaker 2: lot of the private equity firms are basically going out
10:09
Speaker 2: getting these private loans specific for private equity to make
10:12
Speaker 2: sure that they can pay back some investors. That's one yeah, yeah, yeah, yeah,
10:17
Speaker 2: it's basically special financing. You've probably read in the news
10:20
Speaker 2: all over the place that a lot of these have
10:24
Speaker 2: redemption issues. Why would you possibly have redemption issues? Yes, right,
10:29
Speaker 2: you would have redemption issues if you're not willing and
10:31
Speaker 2: ready to actually go price an asset back in the
10:34
Speaker 2: market where you think you can get the rate of
10:36
Speaker 2: return that you need to not only make your gains
10:38
Speaker 2: but also to pay out your investors. So that is
10:40
Speaker 2: a major issue and concern. Over the last five years,
10:43
Speaker 2: you've seen private equity try to tap into the wealth
10:46
Speaker 2: management space like you've never seen before because what happens
10:51
Speaker 2: with maturing assets is they tend to then go to
10:55
Speaker 2: the retail public as a way to provide liquidity into
10:59
Speaker 2: the market place. So right now, you think about the
11:02
Speaker 2: amount of private equity investors and people that you have.
11:04
Speaker 2: And I'm not saying all, not speaking for the entire category.
11:07
Speaker 2: I'm just saying from what we think where we are
11:09
Speaker 2: in a late stage cycle, does private equity have the
11:12
Speaker 2: ability to pass off the cost of an investment and
11:16
Speaker 2: get the premium that they want to meet the redemptions
11:19
Speaker 2: that they need. I just don't think so on the
11:21
Speaker 2: marketplace where it's already priced to perfection. So what are
11:25
Speaker 2: they going to offload? Where would they offload? Who's going
11:30
Speaker 2: to provide the liquidity at the end of the game.
11:31
Speaker 2: This is a liquidity conversation, right, So that's why I think.
11:34
Speaker 2: And then if you go so now, let's just look
11:36
Speaker 2: at the other asset classes that you asked me about.
11:38
Speaker 2: Take Crypto. Crypto's been beaten up pretty bad. I'm not
11:42
Speaker 2: a bigcoin maxi or anything like that. We provide trading
11:45
Speaker 2: vehicles so you can trade whatever you want. But if
11:48
Speaker 2: crypto's beating up to where it is, the market has
11:50
Speaker 2: kind of turned its back on it. You also have
11:52
Speaker 2: an administration that's extremely supportive, knowing that we need to
11:55
Speaker 2: win the crypto rails, just like we need to win
11:57
Speaker 2: the AI rails of the digital infrastr of the future.
12:03
Speaker 2: Something tells me that has a little more life than
12:05
Speaker 2: it than private equity fund or a vehicle. Right, that's
12:09
Speaker 2: at the later stage of an investment cycle. Think about
12:13
Speaker 2: the concentration right now in the marketplace. You guys are
12:16
Speaker 2: just talking about it, right, it's highly concentrated in the
12:18
Speaker 2: whole AI trade. After you get away from that, it's
12:21
Speaker 2: kind of breaks down fairly quickly. So that's why I
12:24
Speaker 2: think the private equity trade is a little longer though.
12:27
Speaker 4: Two, if I can do a follow up, why isn't
12:32
Speaker 4: this a bigger sket because the way you put it?
12:35
Speaker 4: I mean, if you read you knew. But if Michael
12:39
Speaker 4: Berry heard this, he would be forming a short right now.
12:42
Speaker 4: Why do you think some of this information is hidden
12:45
Speaker 4: for those who don't know if they can't pay out
12:47
Speaker 4: the addiction when they're getting the loan. If we did
12:49
Speaker 4: that correct, it would be unfavorable, to say the least.
12:53
Speaker 4: Why do you think this isn't a bigger sup of things?
12:56
Speaker 1: One?
12:56
Speaker 2: Because they are, Oh, I gotta be mindful because you
12:59
Speaker 2: guys put this up on YouTube. Yeah, so let's just
13:06
Speaker 2: look at it from a commercial perspective. The biggest selling
13:09
Speaker 2: point that President Trump and the administration is talking about
13:12
Speaker 2: is possibly having the ability to put private investments into
13:16
Speaker 2: retirement accounts and into more retail into the hands of retail.
13:21
Speaker 2: So just think about that for a second. With that
13:25
Speaker 2: being the case, you need a positive tail wind and
13:28
Speaker 2: storyline to make sure that the market absorbs that in
13:33
Speaker 2: an appropriate way. That's really really important. So I think
13:36
Speaker 2: they have an administrative support system to help commercialize why
13:41
Speaker 2: private equity is still a really attractive opportunity for people.
13:52
Speaker 1: Well played, we didn't need a chance to talk about
13:55
Speaker 1: like your bio and depth. Boy, can you explain like
13:58
Speaker 1: even how you got here in your role because I
13:59
Speaker 1: know in the past you had leadership roles at black
14:01
Speaker 1: Rock Harbor Capital, New York Stock Exchange. You recently served
14:05
Speaker 1: as a director of exchange traded Funds at the New
14:08
Speaker 1: York Stock Exchange. As I said, you're you're the leader.
14:11
Speaker 1: I think your current position is a global ETF strategist.
14:17
Speaker 1: So can you walk us through your career, your career journey.
14:21
Speaker 2: And yeah, thanks thanks for the setup. Allow love the
14:25
Speaker 2: name brother, Yeah good names, so yeah, very good. So look,
14:32
Speaker 2: I started in the career, my career in two thousand
14:34
Speaker 2: and six at Newburger Berman when it was a subsidiary
14:37
Speaker 2: of Lehman Brothers. So you know, probably similar to when
14:41
Speaker 2: you became an advisor. Back back then, I was just
14:43
Speaker 2: getting in the game, and I just wanted to get
14:45
Speaker 2: in the game, and we were working in the mutual
14:48
Speaker 2: fund business. And then in twenty ten, after the GFC,
14:51
Speaker 2: I moved out to California with the company to consult
14:55
Speaker 2: financial advisors. So you'll get a kick out of this.
14:57
Speaker 2: B I was a wholesaler, so I would actually go
15:01
Speaker 2: to the financial advisors and I was the advisor's advisor.
15:04
Speaker 2: I was consulting them on the different investment vehicles, solutions,
15:08
Speaker 2: and portfolio construction ideas that they needed to have to
15:12
Speaker 2: not only build durable portfolios, but also think differently about
15:15
Speaker 2: what they currently have. So I did that for fifteen years.
15:19
Speaker 2: I was in business school at USC, I did the
15:20
Speaker 2: executive program while I was out in California, and then
15:23
Speaker 2: I joined Blackrock in twenty fifteen. While I was at Blackrock,
15:27
Speaker 2: I was there for seven years. I was a director,
15:28
Speaker 2: I was a top sales rep. I had a wonderful
15:31
Speaker 2: run there, but my curiosity pulled me down the crypto
15:35
Speaker 2: rabbit hole. During I would say COVID in twenty twenty
15:40
Speaker 2: really around George Floyd. Floyd's murder, and what I realized
15:45
Speaker 2: was this was the complete future of security. And I
15:52
Speaker 2: would say, accounting right if we think about what it's
15:55
Speaker 2: used for from a utility perspective. And when I saw it,
15:57
Speaker 2: I couldn't unsee it. So I was at Blackrock. I'm like, hey,
16:00
Speaker 2: can I work in crypto? They're like, absolutely not. You
16:03
Speaker 2: raise money really well, so please continue to raise capital.
16:06
Speaker 2: So no problem. I said, Okay, Well I left and
16:08
Speaker 2: I went and did some things in tech. So I
16:11
Speaker 2: went and built a tech startup with a buddy. I
16:13
Speaker 2: also worked for a crypto startup, and then I had
16:16
Speaker 2: an opportunity to pursue a role at the New York
16:20
Speaker 2: Stock Exchange. When I went to the New York Stock Exchange,
16:24
Speaker 2: I already had a mast, a bunch of tools, meaning
16:27
Speaker 2: my background in crypto, my background at in the ETF
16:30
Speaker 2: space at Blackrock, my background of going to school to
16:33
Speaker 2: where the opportunity was just basically right for me to
16:36
Speaker 2: come in and do well in the sense of I
16:39
Speaker 2: was still me, my commercial self, if you will, but
16:41
Speaker 2: I had the technical background to really support the engine
16:45
Speaker 2: that was growing behind ETFs. So last year, obviously we
16:48
Speaker 2: raised eleven hundred ETFs launched in the market. This year
16:51
Speaker 2: it's probably going to be over eleven hundred and twelve
16:54
Speaker 2: hundred new ETFs. But I got to Direction because our
16:58
Speaker 2: CEO actually ran the ETF business at the New York
17:01
Speaker 2: Stock Exchange before I got there, and he and I
17:04
Speaker 2: were very friendly, and he actually recruited me to accept
17:07
Speaker 2: the role as global ETF strategist here at Direction, and effectively,
17:12
Speaker 2: what that means is, I'm sitting between our marketing department,
17:15
Speaker 2: our sales and distribution department, and our product development department
17:19
Speaker 2: to commercialize some of these complex stories and ideas and
17:23
Speaker 2: simplify them as we go out and communicate to the
17:25
Speaker 2: retail trading public.
17:29
Speaker 3: There definitely is an ETF boom, and obviously you just
17:32
Speaker 3: laid out the measurements for it, right you said twelve
17:35
Speaker 3: hundred listed last year, probably around twelve hundred this year.
17:39
Speaker 3: We're watching them being created and we can kind of
17:42
Speaker 3: see a theme, right Like I feel like every year,
17:44
Speaker 3: maybe every few years, there's a theme. Memory for sure
17:46
Speaker 3: is a theme this year. I wonder as you look
17:49
Speaker 3: at it from your landscape, is there a category, a
17:52
Speaker 3: sector that you see has the potential to be the
17:54
Speaker 3: next boom? Is it infrastructure, is it energy? Or do
17:58
Speaker 3: we look at how software has been beat down and saying,
18:00
Speaker 3: you know what, software has the potential when it gets
18:03
Speaker 3: to that level of the AI story to have a good.
18:06
Speaker 2: Question, Troy, Look, I think the way the investor public
18:09
Speaker 2: should think about the theme of the day is that
18:15
Speaker 2: AI infrastructure. That's the compounders, like that's not going anywhere.
18:19
Speaker 2: You're talking compute, memory, and power. Those are the three
18:22
Speaker 2: pillars that's going to stand on. Like it's going to
18:25
Speaker 2: be broader because you have the semiconductor conversation. You have
18:28
Speaker 2: like these additional layers that are important, but that bad
18:32
Speaker 2: that theme is not going anywhere, So we just need
18:34
Speaker 2: to like put that on the table. The second thing
18:37
Speaker 2: I think there's a part of the theme that's really
18:39
Speaker 2: important is you have the hyperscalers, the megacap tech, whatever
18:45
Speaker 2: you want to call them. That eight hundred billion dollars
18:48
Speaker 2: of capital deployment. It takes time to work through the system.
18:52
Speaker 2: The infrastructure needs to be built. So everyone's worried about
18:55
Speaker 2: and you guys were talking about Microsoft as an example,
18:59
Speaker 2: their cash number, their numbers are ridiculous, Their free cash
19:02
Speaker 2: flow may seem to obviously come down a little bit,
19:05
Speaker 2: but they put a major investment or capital commitment to
19:10
Speaker 2: building out more cloud and more obviously compute power and
19:13
Speaker 2: support for their current user base. So those themes should
19:17
Speaker 2: be intact. Troy that the AI theme is here, I
19:21
Speaker 2: think the play that's a deviation away from that would
19:25
Speaker 2: be the energy sector and how do we continue to
19:29
Speaker 2: fuel and cool these chips. So that's the narrative that
19:33
Speaker 2: I think you'll see come up next. So it's going
19:35
Speaker 2: to be okay, is it going to be liquid nec
19:37
Speaker 2: gas right, LNG? Is it going to be nuclear? We
19:41
Speaker 2: need more sustainable power because the draw on the energy
19:44
Speaker 2: grid is just too much. So what you saw with
19:46
Speaker 2: the memory side was a bottleneck being exposed, right. That
19:50
Speaker 2: bottleneck was there's only a handful of chip providers. That's
19:53
Speaker 2: how we got the a mds. We got the nvideas
19:55
Speaker 2: of the world, and then you said, what, here's the pivot,
19:58
Speaker 2: where's the memory opportunity. The memory op opportunity was your
20:01
Speaker 2: microns of the world s k Heniggs, right, and your
20:04
Speaker 2: Samsung and then you send this and then after that
20:08
Speaker 2: it's going to be like, well, where's the power play
20:11
Speaker 2: and the support behind the infrastructure because we know what
20:14
Speaker 2: we can compute now, we're going to have a supplied
20:16
Speaker 2: demand imbalance when it comes to energy and support