And so, the shares are fluttering upwards again, enjoying a further 3.7% gain this morning. The instigator? Northland Capital, naturally. Analysts, you see, are like fortune tellers, except they use spreadsheets instead of crystal balls – and are paid handsomely for the privilege of being wrong.
The question, as always, isn’t whether the performance is acceptable (it is, demonstrably), but whether one should take the spoils or, heaven forbid, invest further. A tiresome dilemma, really. Let’s have a look, shall we?
These ‘AI chips,’ as they are so breathlessly termed, require something called high-bandwidth memory – HBM – a rather pedestrian name for a component that is, apparently, the key to unlocking the secrets of the digital universe. It’s a curious thing, this HBM; a specialized form of memory that allows these chips to store and process data with a speed that would, one suspects, quite overwhelm the average human brain. The demand, naturally, is exceeding supply, and prices are soaring. It’s a simple equation, really: scarcity breeds opportunity, and opportunity, alas, often breeds vulgarity.
The market, in its capricious nature, has turned its gaze from Sirius XM. A two-thirds diminution of value over three years – a harsh judgement, certainly. Yet, it was during this very period of public disaffection that Berkshire Hathaway, under the still-watchful eye of its former steward, continued to accumulate shares. A curious paradox. The accumulation, a silent rebuke to the prevailing sentiment. One must ask: what does Berkshire see that others do not? Or, perhaps more accurately, what is it willing to see? The company is a provider of a solitary, curated auditory experience in an age of overwhelming, indiscriminate noise. A dwindling resource, perhaps, but one generating over a billion dollars annually in free cash flow. A stubborn resilience, if nothing else. The dividend yield, exceeding 5%, is a palliative, a small recompense for the anxieties of a declining platform. To speak of a “forward earnings multiple of 6.6” feels almost… indecent, given the broader market valuations. Either the stock will find a new trajectory, or the yield will bear the burden of expectation. The key, as always, lies in reversing the decline, in attracting a new generation of listeners – a task requiring more than mere technological adaptation, but a fundamental understanding of the human desire for connection, for a voice in the wilderness.
The premise, as presented, is that a return is possible by the year 2030. A decade. A curiously arbitrary endpoint, yet one we are compelled to consider, given the prevailing currents of speculation. The justification hinges on two factors, each more labyrinthine than the last.
These five, the most substantial of the ‘Magnificent Seven’ as they are rather fancifully termed, have matured beyond mere revenue accumulation. They have become, one might say, comfortably established, generating profits with an ease that invites both admiration and, perhaps, a degree of cautious scrutiny.
Originally, this marvel was to bear fruit by the year 2025. Alas, time, that relentless critic, has forced repeated postponements. One begins to suspect that the entire enterprise is a phantom, a magnificent delusion constructed to appease shareholders and distract from more pressing concerns. When the new steward, one Lip-Bu Tan, assumed command, whispers arose questioning whether these structures would ever see the light of day. He decreed that the ’14A’ process, a key to this foundry’s supposed success, would only proceed if external patrons—those willing to pay for Intel’s services—were secured. As of this moment, the target date for the first chips emerging from Ohio is a distant 2030 – a delay that smacks of desperation, or perhaps, a polite admission of difficulty.
ExxonMobil, a rather ostentatious offspring of Rockefeller’s dismantled empire, has dutifully increased its dividend for forty-three years. A predictable performance, naturally. The truly interesting companies are those that defy expectation, not confirm it.
It is a truth universally acknowledged, that a gentleman of substantial fortune must be in want of an investment. Such is the case with Mr. Michael Saylor, the proprietor of a most intriguing enterprise, known to many as Strategy (formerly MicroStrategy), who has recently indulged in a most extravagant acquisition of no less than 22,305 … Read more
The point is this: someone has to generate all this power. And that, my friends, presents a rather interesting opportunity for those of us with a penchant for spotting a good investment. It’s not about the algorithms themselves, you see. It’s about the utterly mundane, yet utterly vital, business of keeping the lights on. So, let’s examine three companies poised to benefit from this… shall we say, ‘digital gluttony’.