Not sure if analysts and estimates already take this into account, but if not, $10 Bn in CHIPS subsidies over next 4 years would change IRR significantly. Just messing around
The 70% figure for a hypothetical Nvidia and TSMC IDM's gross margin makes sense if you average their respective margins and weight by market cap. $2T * 0.75 + $500B*0.53 / ($2.5T) = 71%
Not sure if that's a fair way to calculate it though. Please correct me if I'm wrong.
Excellent article, very well structured, detailed, and written!
Wow. Super research and writing!
Not sure if analysts and estimates already take this into account, but if not, $10 Bn in CHIPS subsidies over next 4 years would change IRR significantly. Just messing around
https://docs.google.com/spreadsheets/d/153uIFb9mPFva8Cm3cVEagt0a9fRWsu5ETKeBv_3UYzQ/edit#gid=0
Just did a similar write up on the state of silicon
Would love your thoughts!
https://open.substack.com/pub/matthewharris/p/chips?r=298d1j&utm_medium=ios
Thanks for correction.
The 70% figure for a hypothetical Nvidia and TSMC IDM's gross margin makes sense if you average their respective margins and weight by market cap. $2T * 0.75 + $500B*0.53 / ($2.5T) = 71%
Not sure if that's a fair way to calculate it though. Please correct me if I'm wrong.
Yes that defines the risk
What would be your bear case estimate?