Theme
Every model release is paid for in silicon, power and concrete. This theme follows the companies that sell the picks and shovels: accelerators, the equipment that makes them, and the networking that ties a data centre together.
What the theme is made of.
Calls on its names, and commentary on them with no call.
Who publishes here most. No ranking, no score.
No argument with the business. The entry is the problem: the multiple already discounts two more years of a capex cycle that has historically run three.
Contract pricing held firm while the commodity tier rolled over. There is no second source at the required specification, which makes this structural rather than cyclical.
Large buyers are writing second-source clauses into every accelerator contract. In a supply-constrained market the alternative prices far closer to the incumbent than the model assumes.
Lead times have started extending again at the component level. That has preceded every upturn in this industry and it has never once been priced early.
Lead times have started extending again at the component level. That has preceded every upturn in this industry and it has never once been priced early.
Attach on the adjacent silicon has risen for four consecutive quarters off a much smaller base. Mix alone carries the gross margin without a single extra unit shipped.