Holy sht, $MRVL is in the final stages of a deal to acquire $LITE.
Attempting to vertically integrate the most supply constrained chokepoints… with lasers.
Is very big brain if they pull it off and suddenly makes other laser players more strategically valuable.
Woah, stellar earnings from and AI market projections...
1. SK Hynix: "Memory supply shortage to persist through 2030".
2. There's the $4.8B operating profit beat ($62.8B vs. ~$58B est)... 80% operating margins.
So you had:
- Revenue: $78.84B vs. $74.02B
- Operating profit:
Oh look… more memory durability evidence for $MU and co.
Following the news of $GOOGL, other CSPs such as Alibaba, Tencent, Bytedance, and are now negotiating memory LTAs with $SKHY and Samsung.
Some customers are reportedly pushing for 10 year contracts as well, into 2035.
I made a new “It’s All Over” portfolio today of even higher beta names than $AAOI.
The requirements:
1. Fell off a cliff
2. Lower than when they announced their catalysts
3. Increasing fundamentals
4. Looks like the chart
5. Short interest spiking
Stuff like $ALMU at $7,
Oh look… more memory durability evidence for $MU and co.
Following the news of $GOOGL, other CSPs such as Alibaba, Tencent, Bytedance, and are now negotiating memory LTAs with $SKHY and Samsung.
Some customers are reportedly pushing for 10 year contracts as well, into 2035.
$GOOGL is now discussing deals to extend their memory LTAs through 2035 from KeyBanc channel checks.
Samsung already has 70% of their capacity allocated through 2031, and this move would suggest a more durable cycle for $MU, $SKHY, and the others.
They also expect HBM prices
