Chip is the new Oil
The whole world was anxiously, waiting for the earnings report from Nvidia, as if Nvidia was bearing the weight of the global economy on its shoulders, if Nvidia had returned negative results that would have had an impact on the market and global economy at least on temporary basis. This is a kind of realisation that the chips have taken place of oil to control the global economy, even it has come into the centre stage with regards to the geopolitics and power struggle, especially between US and China. Every developing country in the world wants to be self reliant in terms of chip production and chip consumption and they are looking at it, as a life blood of their own sustainability and progress. The demand is rising for AI based computing and current supplies are inadequate to meet these whopping forecasted demands. Theres are limited suppliers like TSMC and INTC currently in this area and they would have the power to decide who gets the supply. This would have a direct impact on supply chains of every electronics products and will lead to a fight for securing growing demands just like Oil. Companies like Microsoft are increasingly concerned about this dependency on chip manufacturers. The US chips act intends to promote local chip production of chips with incentives and tax credits for investments. Japan also has launched a series of measures in the same line. Growing economies like India have domestic chip production high on their agenda and they have already announced establishment of large scale production facilities
Meanwhile the current market dominance of all chip companies will continue for several years until alternate brands and OEMs come into play with reasonable knowhow and product maturity and strong R&D.
Until then let us embrace the new era of AI based companies influence on stock market and ride the waves. Happy trading
Meanwhile the current market dominance of all chip companies will continue for several years until alternate brands and OEMs come into play with reasonable knowhow and product maturity and strong R&D.
Until then let us embrace the new era of AI based companies influence on stock market and ride the waves. Happy trading
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