Tae Kim
AI/Semiconductor Journalist, Author of Key Context
Foxconn, Nvidia's AI server maker, should outperform as AI demand keeps growing. On September 5, 2026, Foxconn said third-quarter operations should gain momentum as ICT products enter their second-half peak season, that visibility has improved from the prior month and that overall performance is expected to beat market expectations. x.comÂ
Alphabet's AI growth is harder to turn into cash because capacity shortages require rented compute while TPU system sales tie up inventory before delivery. Cloud grew 103%, with system sales contributing meaningfully; management expects rented compute to pressure Q4 Cloud margins. Q3 free cash flow was -$9.1B, partly reflecting inventory build and a one-off EU fine, while AI Mode monetizes less effectively than traditional Search. The dip is probably a buy with a reasonable timeframe. x.com … Show more
Wiwynn's AI-rack revenue reflects orders placed months earlier, showing spending kept flowing through September despite financing fears. September revenue doubled at Wiwynn to NT$172.6B, rose 87% at Wistron and 77% at Quanta year over year. A six-provider GPU rental index rose about 17% in a month, supporting a financing scare rather than a turn in AI demand so far. Next to watch: whether Microsoft, Alphabet and Amazon capex guidance holds or rises in the week of October 28. x.com x.comÂ
Anthropic's customer growth gives AI compute suppliers firmer demand evidence than capacity plans. Its S-1 reports $16.3B in H1 2026 revenue and about 900% net retention as of September 30, the strongest evidence yet of adoption. Over $500B in commitments include a roughly $125B five-year Broadcom equipment lease plus Amazon, Google and Microsoft arrangements; Nvidia GPUs are in its mix. Long-term obligations could outlast usage revenue. x.comÂ
Jan Zuazo Pfingsten
Thematic Investor, Physical Scarcity & AI Infrastructure, Primary-Source Research
AI infrastructure suppliers still have healthy demand despite tense financing. Q4's spending pace contradicts the reading that flat capex means a slowdown, while Cloud growth is 103%. Alphabet's negative free cash flow and share issuance are what punish its stock; a supplier selloff tomorrow would be an opportunity, not an exit signal. x.comÂ
Anthropic's compute commitments point to future revenue for Alphabet, Amazon, Microsoft, Broadcom and Nvidia. Its S-1 reports 14-fold revenue growth, positive second-quarter 2026 EBIT and more than $600 billion committed to compute through 2045. The AI trade is alive and well, more than expected, provided demand keeps pace with those commitments. x.comÂ
The broad AI trade is among the most undervalued markets in years on a growth-adjusted basis because demand for intelligence keeps rising. Usage of open-weight and closed frontier models keeps climbing, while GPU rental prices are up around 80% this year despite exploding supply. Nvidia, AMD and SpaceX share this demand bet as long as both lines keep rising. x.comÂ
TSMC's latest results point to AI chip demand still running ahead of supply, supporting the semiconductor and equipment trade. Cantor says TSMC raised its 2026 revenue outlook again, guided December-quarter sales above consensus and held 65-67% gross-margin guidance through the N2 ramp; its bullish sector read names Nvidia, Broadcom, AMD, ASML, Applied Materials, Lam Research and KLA. Jensen Huang says AI labs need not reach trillions in revenue to justify the buildout. x.com x.comÂ
TSMC's capex plans suggest the AI chip trade is not over for semiconductors, Nvidia, AMD and Micron. CFO Wendell Huang cites robust multi-year demand, including agentic AI, behind $60-64 billion of 2026 capex; TSMC expects 2026-28 spending to be even more significantly higher than in the prior three years. Hyperscaler earnings should reinforce the higher AI capex trajectory. CoreWeave-driven fears feel overdone, though the neocloud model does not appeal long term. x.com x.comÂ
TSMC's AI-chip foundry role is translating into another record quarter of profit. Third-quarter revenue reached NT$1.49 trillion, up 51% year over year, and net income NT$763 billion, up 69%, its sixth straight record-profit quarter; the attached results show a 51.1% net margin and a 2.2% beat against the cited consensus. This strengthens the existing bullish view that AI chip demand runs through TSMC. x.com x.comÂ
Hon Hai has little bear case if it is Nvidia's sole CPO supplier with supply already maxed before Q3 mass production. Per @aleabitoreddit, Foxconn's shareholder meeting said CPO switch products start in Q3, with 10,000 units in 2026 and explosive growth next year, and that it aims to be number one globally. x.comÂ
