The cost of chip designs has risen at an incredibly rapid pace.
From the 28nm design in 2011 to 3nm in 2022, the cost of designing a chip increased by 12x – benefiting design tool and IP giants such as $SNPS, $CDNS, and $ARM. Source: Quartr
Massive money pours into the Invesco S&P 500 Top 50 ETF
Source: Bloomberg
FT article: "The rate at which US start-ups are going bust is more than seven times higher than in 2019, threatening millions of jobs and risking spillover to the wider economy"
Source: FT
Is long AI short yen the same trade?
Gray line is 30-year T-bond yield relative to tech 12 month forward earnings yield ratio Dotted green line is EUR/JPY Source: www.zerohedge.com
US Chips Act is reshaping global semiconductor landscape
• America looks set to produce around one-third of global supply for leading-edge chips by 2032 • US rise will come at expense of South Korea, which could become minor player for top-notch chips Source: Agathe Demarais
Bank of America survey shows continued optimism on Big Techs
Source: Bloomberg
Has the Magnificent 7's earnings growth peaked?
In Q2 2024, the Magnificent 7' net income, excluding Nvidia, $NVDA, rose by 30% year-over-year, the slowest growth since Q2 2023. This is down from 51% in Q1 2024 and below the record 57% seen in Q4 2023. It is estimated that the growth rate will decelerate further to ~17% in Q3 2024. Source: The Kobeissi Letter
As the Mag 7 slow the rest of the SP500 is showing signs of improving growth
Source: Bloomberg intelligence, Markets & Mayhem
