The bill for AI chips is being paid by customers
TSMC has posted its highest profit in six quarters. Micron has locked in $32 billion through 2030 with a single “take-or-pay” agreement, while Nvidia has gone even further, putting up $250 billion upfront to secure production capacity—paying before picking up the goods. Since October 6, the Philadelphia Semiconductor Index has plunged nearly 14%. Profits are still soaring, but share prices have already admitted the cycle got it wrong.
These long-term contracts shift inventory and demand risks onto customers’ financial statements ahead of time. The moment the AI narrative catches a cold, liquidity gets sucked out of AI-themed stocks across the supply chain first. Every rebound in these hype-driven names is an opportunity for market makers to unload shares. In the end, capital will retreat to safety. AI stocks may spike and then pull back in the short term—don’t chase them and end up holding the bag.
Anyone still holding AI-themed coins, tell me your cost basis. Let’s see who’s signaling to me from the mountaintop.
$TAO $FET $BTC
TSMC has posted its highest profit in six quarters. Micron has locked in $32 billion through 2030 with a single “take-or-pay” agreement, while Nvidia has gone even further, putting up $250 billion upfront to secure production capacity—paying before picking up the goods. Since October 6, the Philadelphia Semiconductor Index has plunged nearly 14%. Profits are still soaring, but share prices have already admitted the cycle got it wrong.
These long-term contracts shift inventory and demand risks onto customers’ financial statements ahead of time. The moment the AI narrative catches a cold, liquidity gets sucked out of AI-themed stocks across the supply chain first. Every rebound in these hype-driven names is an opportunity for market makers to unload shares. In the end, capital will retreat to safety. AI stocks may spike and then pull back in the short term—don’t chase them and end up holding the bag.
Anyone still holding AI-themed coins, tell me your cost basis. Let’s see who’s signaling to me from the mountaintop.
$TAO $FET $BTC