Intel: It’s not about the foundry, it’s not about packaging
I can believe Intel is on course for much better Xeon sales, but I don’t see it as a game-changer. They lost the game to Nvidia some time ago by taking their eyes off the ball.
www.thetechnologyletter.com
$INTC
Apple: The cash cliff after Tim Cook
As Apple faces a cash cliff next year, the question of where its product development is headed becomes somewhat more pressing.
www.thetechnologyletter.com
$AAPL
Accelsius CEO: Fighting conventional wisdom
“I have empathy for these [data center] architects. They have so much thrown at them, they’re simply asking, what are my friends doing.”
$INV
www.thetechnologyletter.com
They say these chip-equipment stocks have to “re-rate” to reflect the cyclical nature of the business. Maybe, but the business continues to get stronger and stronger. That’s what matters from an investment standpoint.
www.thetechnologyletter.com
$ASML
The TL20 group of stocks to consider, which I have curated since July of 2022, is up 382% in three years and nine months. Just this month, the group have “gone parabolic,” as they say, up 24% for the month of April.
www.thetechnologyletter.com
We are in a time of elevated expectations and elevated stock valuations for artificial intelligence-linked and data center-linked companies’ stocks. That includes Bloom, whose progress in clean energy is undeniable. Buyer beware.
www.thetechnologyletter.com
$BE
This is very typical of thematic investing: if there’s a theme, such as AI and AI “agents,” then every week or so, some investors will latch onto the presumably undiscovered corner of that theme.
Fastly, Akamai retreat as agentic AI fantasy fades
www.thetechnologyletter.com
$AKAM $FSLY $NET
You know, the landing page of The Technology Letter, which is free to browse, is like a daily map of what’s going on with tech stocks. Even if you’re not a subscriber, you can at a glance get a sense of some of the top stories affecting tech equities on any given day.
www.thetechnologyletter.com
When you chase a low valuation on some assets, it can be what’s called a “value trap." Simply put, I don’t think Intel is the best investment because it happens to be cheap.
A forty-percent return on Intel just for its factories
www.thetechnologyletter.com
$INTC
Many of the same arguments are made in favor of great software companies again and again. Those arguments fall on deaf ears with software investors.
Maybe Datadog won’t be destroyed by AI
www.thetechnologyletter.com
$DDOG $DT
I had a fascinating conversion this week with a computing pioneer, Matei Zaharia, the CTO of Databricks.
Databricks’s resident genius sees AI agents living ‘Groundhog Day’
www.thetechnologyletter.com
@databricks.bsky.social
About that 16,000-word piece on Sam Altman in The New Yorker
About that 16,000-word piece on Sam Altman in The New Yorker
New CFO for Oracle, brace for a new valuation
As Oracle goes deeper and deeper into sunk capital investment, and deeper in debt, the valuation has to go lower.
www.thetechnologyletter.com
$ORCL
Human not AI stock analysis
The major information providers such as FactSet and the rest have these automated forms of stock information.
The bolt-on AI stuff is basically turning out to be not very valuable. Stick with people not automatically-generated garbage.
Your chatbot is playing a character - why Anthropic says that's dangerous
Researchers found that part of what makes chatbots so compelling also makes them vulnerable to bad behavior. Here's why.
www.zdnet.com/article/anth...
@anthropic.com
TL20 bounces back
The week of April 2nd, an abbreviated trading week, saw a nice recovery for the TL20 group of stocks to consider, now up 6% for the year versus a decline of 6% for Nasdaq.
www.thetechnologyletter.com
$MU
OpenAI: Finally, a price on all the madness
We’ve seen this movie before. Recall the example of Snowflake, which had high growth, but also massive losses and an absurd stock valuation when it came public. The result was not pretty.
www.thetechnologyletter.com
@openaibot.bsky.social
Microsoft: What’s the value of the data?
Microsoft is the “trusted landlord” of some of the world’s most important data. But, the company has no monopoly on data, and it’s not certain it has the most crucial data that artificial intelligence needs.
$MSFT
www.thetechnologyletter.com
Google’s quantum crypto doomsday is not all it seems
No one bothered to talk about the fact that quantum computing has a scaling problem, and no one has proven a quantum computer big enough can even be built.
www.thetechnologyletter.com
$GOOGL
A billion here, two billion there: Nvidia has been spending like crazy for the past year. $37 billion in all in public and private equity. What does it all amount to?
Marvell Technology just the latest in Nvidia’s $37 billion equity pile
www.thetechnologyletter.com
$NVDA $MRVL
A very hot play on AI data centers, Accelsius, continues to be at the heart over the debate about conglomerate Innventure.
Innventure CEO says his stock is too cheap; it’s hard to say
www.thetechnologyletter.com
$INV
The TL Podcast for March 29th: Gains erased in a week
Reflecting on what is and is not working.
$KLAC $LRCX $SNDK $MU
www.thetechnologyletter.com
Or catch it on Apple Podcasts: bit.ly/40HBLJg
There’s a lot of activity around robotics, for sure. None of it points to an inflection.
No, even Tesla can’t bring us closer to humanoid robots
www.thetechnologyletter.com
$TSLA $PDYN $WATT
Keep the faith with Micron, SanDisk
I think most investors don’t have a lot of insight about semiconductors per se, and especially not about memory and storage technology.
$MU $SNDK
www.thetechnologyletter.com
Now that ARM is mortal, how about a much lower stock multiple?
ARM doesn’t deserve to trade this high if it is going to compete with its customers
How about $105, fifty percent lower, as a stock price target?
www.thetechnologyletter.com
$ARM
KLA, Lam are pricey for a reason
In an expensive market, we get to nit-picking about what’s really expensive and what’s not…
www.thetechnologyletter.com
$KLAC $LRCX $NVDA
Pushed into massive spending — $69 billion in debt come 2028, says Merrill — is a kind of enslavement. Maybe there’s a way out…
CoreWeave may end up just a software vendor
www.thetechnologyletter.com
$CRWV
Everyone is Waiting for Godot, in a sense, with software stocks, something to deliver the group from their misery. M&A is one possibility. Three names stand out as good acquisition candidates.
$TWLO $DOCN $NTNX
www.thetechnologyletter.com
Lumentum and Nvidia push ‘scale up,’ but is it real?
When Nvidia controls fiber optics, question everything.
www.thetechnologyletter.com
$LITE $COHR $NVDA
