EP 151: WFE Boom! Insight from the Clouds. Word of the year - constraints

The co-hosted podcast episode analyzes recent earnings reports and trends in the semiconductor industry, focusing on capacity constraints and cyclicality concerns. The discussion highlights the continued strength in Wafer Fab Equipment (WFE) due to the increasing complexity of advanced nodes requiring new equipment. Meta and Microsoft's earnings are examined, revealing a tension between internal software teams and cloud service businesses for compute resources. The hosts debate whether current AI investments are yielding sufficient returns, noting the narrow base of companies driving demand and the potential for overbuilding data centers. The conversation also covers Sandisk's impressive storage numbers and the possibility of long-term shifts in memory market dynamics, while also touching on TI's inventory build-up in anticipation of future demand.