00:00 Speaker A
the market is just rotating back and forth. It’s really hard to make sense of like uh the day-to-day moves, but I think that there was probably some crowded positioning and I think that, you know, this earnings is going to be really important in terms of uh what is the return on AI like, you know, the back seven, you know, they’re spending a lot in general the spenders, um, like Google, Meta, Microsoft. And so, I think it depends on the the durability of growth here and that will also power kind of like, you know, the the return on that spend on spending on some of these. And so, um, you know, I think that the moves have been probably pretty frenetic and I think earning season is going to probably, you know, clear up what’s going on over the next uh few quarters.
01:03 Speaker A
Results are probably going to be really good. I think at this point is just like how good and I would say that the bulls are probably arguing that, look, like, you know, we’re on a multi-year kind of big gigantic journey on AI and AI is so early innings and, you know, in terms of memory, like it is becoming like the bottle act and um, you know, as a result, um you’re going to need more HPM and you’re going to need a lot more supply and this is going to be more structural. I think is what the bulls are arguing. I think on the bear side, it’s it’s the view that, you know, the pricing supply is going to catch up and uh this is like unsustainable. That’s why it trades at this type of earnings multiple.
02:04 Speaker B
SK Hynix coming to the US and their IPO listing. Bloomberg reporting that this is company is seven times oversubscribed. How should you be thinking about this heading into tomorrow?
02:26 Speaker A
Yeah, it’s always like uh um, you know, tricky to just just, you know, paint a straight line on the oversubscribed number. Um but, you know, I think it comes at a good time in the memory cycle. Uh it gives them more optionality. Uh you know, helps the company like recenter into the US and so and develop a new shareholder base. Um so I think it it totally makes sense. Uh I I I don’t think about it as too much of a fundamental thing, um necessarily, but uh, you know, I I think it’s just a, you know, a mark that, you know, they think that it’s a good time to come to to the US to list.
