WEBVTT - The Trillion-Dollar Chip War - Why Apple Is Worried About China?

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<v Speaker 1>Because, yeah, the China chip market surge. We've been talking

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<v Speaker 1>about chips for a long time and we've seen them

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<v Speaker 1>pull back. So hey, what's the deal with the China

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<v Speaker 1>chip market? Surgeon? Is this something to really be concerned

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<v Speaker 1>about if your if your portfolio has SMH heavy, or

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<v Speaker 1>you're in a chip sector heavy, is it time to

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<v Speaker 1>start being concerned?

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<v Speaker 2>It's time.

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<v Speaker 3>I mean you always I wouldn't say concerned, but you

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<v Speaker 3>should definitely be aware of what's happening. I think a

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<v Speaker 3>few things happened over the past a couple of days

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<v Speaker 3>and you might have missed them.

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<v Speaker 2>So we'll go over the strategically.

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<v Speaker 3>Esk Heinis signed a five hundred billion dollar deal with

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<v Speaker 3>in Vidia. Why is that important? Esk Hynis is the

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<v Speaker 3>leader in high bandwidth memory. They control sixty percent of

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<v Speaker 3>that market. In Vidia obviously the leader when it comes

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<v Speaker 3>to GPUs and obviously one of the top customers. What

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<v Speaker 3>does that do from a strategic standpoint? It makes them say, hey,

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<v Speaker 3>we're not just a customer anymore. We're gonna have to

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<v Speaker 3>partner on infrastructure going forward. What does that do for

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<v Speaker 3>the bottom line for in video? It brings down that

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<v Speaker 3>cost and it now has a strategic partner that they

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<v Speaker 3>can build out into the future. I think it's a

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<v Speaker 3>brilliant idea second piece, and this is important Micron not Micron.

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<v Speaker 3>Samsung signed a deal, a two hundred billion dollar deal

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<v Speaker 3>with Broadcom. And why is that important? Well, again, number

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<v Speaker 3>two in the high bend with the memory sector is Samsung.

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<v Speaker 3>But part of this deal is not just the memory piece.

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<v Speaker 3>They've signed it for packaging and manufacturing. So we talked

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<v Speaker 3>about TSM earlier. With packaging and manufacturing, that is what

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<v Speaker 3>they do. They're the world leader. It's not even a

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<v Speaker 3>close second. The fact that Samsung is saying, hey, we

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<v Speaker 3>wanted to do our own number one loosens the reliance

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<v Speaker 3>on TSM, but allows Broadcom to have a strategic partner

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<v Speaker 3>because they are making the custom ASIC silicone for.

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<v Speaker 2>Google. We're talking about TPUs right.

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<v Speaker 3>Companies are now saying, hey, in video, the GPU is great,

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<v Speaker 3>we can't afford it. We want to do this internally

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<v Speaker 3>and have our AI stack right here within our company.

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<v Speaker 3>Sits right in that market, so if you're trying to

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<v Speaker 3>do custom, they can help with the custom pieces.

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<v Speaker 2>That's a strategic partnership. I love it. What does it

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<v Speaker 2>say for Micron.

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<v Speaker 3>Micron has to have a very very calculated next move,

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<v Speaker 3>and I'll be interested to see what that partnership is.

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<v Speaker 2>Does it mean the end for them? Absolutely not.

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<v Speaker 3>They are still one of Nvidia's biggest customers because the

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<v Speaker 3>bandwidth memory demand.

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<v Speaker 2>Is very high.

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<v Speaker 3>So I think overall, has the demand change, No, has

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<v Speaker 3>a story changed. No, there are strategic moves that are

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<v Speaker 3>happening inside of the book though. Now this is why

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<v Speaker 3>I got a little bit of intellectual smoke for Apple,

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<v Speaker 3>because they did something. There's a report allegedly it was

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<v Speaker 3>in the journal yesterday. We're saying that there's a fight

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<v Speaker 3>between Micron and Apple. And the reason was Apple was saying, hey,

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<v Speaker 3>we have to raise our prices on our next age

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<v Speaker 3>of devices because the memory shores and the fact that

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<v Speaker 3>they've scaled price is going to affect our bottom line.

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<v Speaker 3>And I said, okay, that's interesting, right. The company that

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<v Speaker 3>used to dictate to people, Hey, whoever has the lowest price,

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<v Speaker 3>that's who we're going with. And so you were a

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<v Speaker 3>bully for ten years. You chose I'm gonna use asking Hiane,

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<v Speaker 3>So I'm gonna use Samsung, I'm gonna use Micron. Whoever

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<v Speaker 3>gives me the best deal I'm going with. The tables

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<v Speaker 3>have now flipped. Now they create the price, and now

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<v Speaker 3>they're saying, hey, well, how come you're charging that much?

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<v Speaker 3>In fact, you're charging so much. Now we have to

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<v Speaker 3>charge our customers more. That was the first piece. The

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<v Speaker 3>next piece was that again allegedly, and Tim Cook and

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<v Speaker 3>the Apple officials have gone to the White House say look,

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<v Speaker 3>we either we either need to figure out what they're

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<v Speaker 3>spending this money on because their profit margins are so high.

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<v Speaker 3>Either they're keeping it or they they're price scouging. This

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<v Speaker 3>is what their claim is on Micron. Because of that,

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<v Speaker 3>they've asked now the President's team to allow American companies

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<v Speaker 3>to buy Chinese memory chips.

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<v Speaker 2>Why is that important?

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<v Speaker 3>Well, if the Americans are allowed, the companies allowed to

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<v Speaker 3>buy a cheaper chip, right, which now becomes a quote

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<v Speaker 3>unquote national security issue. Is the reason why Nvidia couldn't

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<v Speaker 3>sell there, right, And now China said we're not allowing

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<v Speaker 3>you to sell and we're not even going to buy.

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<v Speaker 2>That changes the dynamics. So either the White.

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<v Speaker 3>House is going to have to decide allow Apple to

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<v Speaker 3>buy and allow other American companies to buy. At the

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<v Speaker 3>court of an American company like Micron.

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<v Speaker 2>So Micron, you can't do that.

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<v Speaker 1>You're talk about before as far as some people were saying,

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<v Speaker 1>sixteen hundred dollars yep, is that?

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<v Speaker 2>How do you feel about that?

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<v Speaker 1>Right now?

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<v Speaker 2>I'm still at that number. I think sixteen hundred is

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<v Speaker 2>still the number by the end of the year. Still

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<v Speaker 2>feel comfortable with sixteen A couple of reasons. Why all

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<v Speaker 2>those things I just said to you tells me that

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<v Speaker 2>the demand hasn't gone anywhere. Right.

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<v Speaker 3>If the demand hasn't gone anywhere, and they're sold out

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<v Speaker 3>to twenty twenty six and potentially sold out to twenty

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<v Speaker 3>twenty seven, that story doesn't change. Do I think an

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<v Speaker 3>administration will allow a company like Apple to buy from

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<v Speaker 3>a Chinese manufacturer.

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<v Speaker 2>When it comes to that, it will be financial fucking.

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<v Speaker 3>Treason exactly now if they don't allow it. Now, what

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<v Speaker 3>happens to Micron? Right once they say that you can't

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<v Speaker 3>do it? Well, back to the price that you're going

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<v Speaker 3>to pay until we figure out this bottlenecked situation. Now

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<v Speaker 3>c x mt IPO today it ran up four hundred

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<v Speaker 3>and fifty percent.

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<v Speaker 2>Why is that point?

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<v Speaker 3>Well, the Chinese are saying we're not going to use

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<v Speaker 3>your memory, Samsung, we're not going to use your memory SKX, Micron,

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<v Speaker 3>We're not using yours.

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<v Speaker 2>We'll build our own. And we just went over this.

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<v Speaker 3>When you're talking about building at scale, that takes time.

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<v Speaker 3>When you're talking about building with efficiency, that takes time.

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<v Speaker 3>Right now, these chips will only be used by government officials.

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<v Speaker 3>They're not selling these to companies. It takes money to

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<v Speaker 3>build an infrastructure. When you talk about capitals that's being raised.

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<v Speaker 3>Think about how much money Micron is now worth. A

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<v Speaker 3>year ago it was a two hundred billion dollar company.

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<v Speaker 3>This year it touched a trillion. This company IPO today

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<v Speaker 3>it hit eight billion. It was the largest land company

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<v Speaker 3>in the country for the semiconductor space at eight billion.

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<v Speaker 3>Do you think they have the scale to build out

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<v Speaker 3>infrastructure to now compete with trillion dollar companies?

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<v Speaker 2>Not yet, So we just got to be mindful of that.

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<v Speaker 4>The only people who are worried about the destruction of

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<v Speaker 4>SMAH and Micron or the people who are trading it

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<v Speaker 4>and not holding it. The value of the chips. I mean,

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<v Speaker 4>I love the clip before we even did Market Monday's

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<v Speaker 4>AMD and videos talked about in twenty twenty, you can

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<v Speaker 4>calculate the returns from there. That's the power of long

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<v Speaker 4>term holding. Do I think Micron will come down some more?

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<v Speaker 2>Yes?

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<v Speaker 4>Do I think that the company is incredibly valuable, Yes,

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<v Speaker 4>But the only people who are worried about it are

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<v Speaker 4>in the trade of it and not holding the stock.

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<v Speaker 4>This is not trading fucking Thursdays to us change for

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<v Speaker 4>market Monday. To hold the equities forever, hold forever.

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<v Speaker 3>But again, the vision for them is not can we

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<v Speaker 3>win July November, December. China's vision is can we win

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<v Speaker 3>in the next decade twenty years from now?

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<v Speaker 2>Right? Can we build our own stack and be self reliant.

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<v Speaker 3>We don't need South Korea, we don't need Taiwan, we

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<v Speaker 3>don't need America.

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<v Speaker 2>Can we do the independent? Yep? And that they also

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<v Speaker 2>got twenty years from now, not today.

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<v Speaker 4>But if you want to know what the market is

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<v Speaker 4>going to fall to an event, the months in advans

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<v Speaker 4>go to ininvest dot com and joint stock club prices

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<v Speaker 4>are I think I put out one hundred and twenty

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<v Speaker 4>prices and more to com.

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<v Speaker 2>You want to know when stock club stocks if.

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<v Speaker 4>You want to know what they do and get out

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<v Speaker 4>any contagion event that's going to and the other thing.

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<v Speaker 2>Y'all listen to too many people.

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<v Speaker 4>I'm not gonna fix any mistakes from anybody who didn't

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<v Speaker 4>make their millions from this.

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<v Speaker 2>Sorry.

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<v Speaker 4>So, whoever fucked up your portfolio, this is me talking.

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<v Speaker 4>Whoever fucked up your portfolio. Don't come to me and

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<v Speaker 4>say we'll fix this with your weekly rotation. Bullshit. Now

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<v Speaker 4>he got to be diplomat. I'm rockefellow. I don't have

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<v Speaker 4>time for it. If you fucked up your portfolio elsewhere,

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<v Speaker 4>then go to the person who fucked them up and

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<v Speaker 4>tell them to fix it. I've been telling you the

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<v Speaker 4>no stock or no sector goes up nineteen perpetuity, y'all

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<v Speaker 4>are you gambling? And even with the person say somebody

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<v Speaker 4>stole your money, y'all thought it was because I made

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<v Speaker 4>it look easy.

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<v Speaker 2>Y'all thought it was a bunch of means. It's not.

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<v Speaker 2>It's not.

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<v Speaker 4>I'll bunk record my ship. I was free when y'all

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<v Speaker 4>met me. I'm the only one who said I'm still

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<v Speaker 4>still staying on it. You go back to the early episodes.

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<v Speaker 4>What I loved then, I love now. You have to

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<v Speaker 4>hold for a long period of time. But some of

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<v Speaker 4>y'all don't want to hear it, and if you don't

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<v Speaker 4>want to hear it.

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<v Speaker 2>That's fine.

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<v Speaker 4>One day I'm a car shot bowed offer.

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<v Speaker 2>Up here.

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<v Speaker 4>Sometimes like okay, even David Stared and MJ had a

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<v Speaker 4>tumultuous little relationship, right, They made Mike sit down.

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<v Speaker 2>Okay, but then when Mike came back, he said, well,

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<v Speaker 2>you saw my values when we left. Allegedly the pipping

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<v Speaker 2>bulls shot the pip love you. I know you danguished.

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<v Speaker 4>It's different when Jordan in the league, and different when

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<v Speaker 4>he leading the team versus Scottie is doing it. I

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<v Speaker 4>am begging y'all also to the other part, and I

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<v Speaker 4>hate the part in light of Dui going away. There

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<v Speaker 4>are a lot of African American people who are paid

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<v Speaker 4>agents of the state to.

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<v Speaker 2>Tear down certain movements. I proved that before. Oh yeah,

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<v Speaker 2>the state wilder than ever. I didn't say that.

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<v Speaker 4>I said to state anyway, the state, so well, do

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<v Speaker 4>what y'all want. After investments, I'm going to be gone,

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<v Speaker 4>so