Group 1 - The presentation is led by Atif Malik, who covers U.S. semiconductors, semiconductor equipment, and networking equipment stocks [1] - Doug Bettinger, EVP and CFO of Lam Research, is present at the Citi Global TMT Conference [1] - Ram Ganesh is also mentioned as part of the investor relations team [1] Group 2 - The session begins with an invitation for audience questions, indicating an interactive format [2] - Both presenters have arrived at the conference via a red-eye flight, suggesting a busy schedule [2]

Group 1 - The ProShares Ether ETF (NYSEARCA: EETH) has gained over 100% since early April, trading around $76.8, but remains below its March 2024 levels [1] - The analyst has a background in IT and investment, focusing on themes such as automated supply chains, Generative AI, and telcos Capex, with a contrarian approach [1] - The analyst emphasizes a moderate investment strategy aimed at capital preservation, influenced by past losses during the Global Financial Crisis [1] Group 2 - The analyst has extensive experience in virtualization, cloud, and telecommunications, having transitioned from an implementer to a team leader and project lead [1] - The investment journey began with mutual and indexed funds, later shifting to individual stocks, with significant learning from the 2008/2009 financial crash [1] - The analyst values unique perspectives and insights from platforms like Seeking Alpha for informed investment decisions [1]

Government Incentives and Investment - The US government provided Intel with an $11 billion grant to support semiconductor manufacturing in America [3] - The previous administration intended to secure 10% equity in Intel, equating to $11 billion, in exchange for the grant [4] - TSMC initially received $65 billion (65,000 million) to build plants in America, which was later negotiated [7] - TSMC subsequently announced a $165 billion (165,000 million) investment after discussions with the Commerce Secretary [8] - Micron initially received a $25 billion (25,000 million) grant, which was later increased to $200 billion (200,000 million) [9] - Texas Instruments' investment increased from $23 billion (23,000 million) to $60 billion (60,000 million) [9] Policy and Negotiation - The CHIPS Act aimed to incentivize companies to invest in US-based manufacturing due to perceived economic disadvantages [5] - The Commerce Secretary questioned the initial terms of the TSMC deal, deeming the $65 billion grant a "corporate giveaway" [8] - The administration emphasizes the importance of securing favorable terms for the US in exchange for government incentives [9] - The discussion revolves around whether the US government should receive equity stakes in companies benefiting from tariffs or other government support [11] - The US government should consider obtaining a stake in patents resulting from research funded by public money [13]

Industry Focus - Semiconductors are crucial for the 21st century [1] - America needs allies to maintain its technological leadership in chipmaking [1] Geopolitics and Strategy - Donald Trump's approach to chipmaking is counterproductive [1]

Geopolitics and Technology - Semiconductors are crucial in the AI competition between the US and China [1] - The US, under Donald Trump's policies, risks losing the AI race [1]

Government Investment & Ownership - US government acquired approximately 10% stake in Intel [1][6] - The US government is now the largest shareholder in Intel [6] - The equity stake is funded by $57 billion (5.7%) in grants previously awarded under the CHIPS Act [5] - Additionally, $32 billion (3.2%) was awarded to Intel as part of the Secure Enclave Program [5] Deal Structure & Valuation - The US government paid nothing new for the shares, utilizing previously committed funds [4][6] - The shares are valued at approximately $11 billion [1] - The government agreed to purchase 4333 million (4333%) Intel shares at a price of $2047 per share [4] Strategic Importance - Building leading-edge semiconductors and chips is fundamental to the future of the nation [2]

Group 1 - The analyst has 25 years of experience in investing, with a background in IT and a focus on technology-related themes such as automated supply chains and Generative AI [1] - The analyst emphasizes a moderate approach to investing, particularly after experiencing losses during the Global Financial Crisis (GFC) [1] - The analyst has a diverse career history, including roles in virtualization, cloud, and telecommunications, and has also ventured into real estate and farming [1] Group 2 - The analyst's investment journey began with mutual and indexed funds before transitioning to individual stocks, influenced by past experiences during the 2008/2009 financial crash [1] - The analyst values unique perspectives and insights from platforms like Seeking Alpha, which provide access to various analysts and investment strategies [1]

Intel's Challenges and Needs - Intel faces technological and customer acquisition challenges, not just financial ones [1] - Intel needs external capital infusion, whether from customers or the government, to secure its foundry for the long term [6] - Intel requires tens of billions of dollars to reach 14nm production, in addition to its own investment and customer contributions [6] - Intel needs to secure customer wins to build confidence, even though its technology is considered good on paper [8] - Intel's capital needs are at the root of its current situation [9] Government and Industry Perspectives - The U S government should support a U S company like Intel to make leading-edge chips for national security reasons [3] - The U S government taking equity in Intel could incentivize others to support and buy from them [7] - Tariffs or regulations could encourage customers to use Intel, but winning on technological merit is preferable [11] - TSMC is unlikely to bring leading-edge technology to the U S, making Intel the best bet for advanced chip manufacturing in the U S [10] Potential Solutions and Considerations - A combination of private equity and government investment in Intel makes sense to protect that investment [11] - Structuring a government investment in a fair way, such as divesting shares or paying back the investment, is crucial [12][13] - The government's involvement in investments is very tricky [13] - Intel's stock has increased 27% over the course of five days [4]

Core Insights - The analyst emphasizes a tech-focused approach to investment research, leveraging 25 years of experience in IT and investment to provide unique insights [1] - The research methodology includes analytics and charts to support investment positions, with a focus on capital preservation strategies [1] - The analyst has a diverse background, including roles in virtualization, cloud, and telecommunications, and covers themes such as automated supply chains, Generative AI, and the semiconductor industry [1] Investment Philosophy - The analyst's investment journey began with mutual and indexed funds, transitioning to individual stocks after experiencing significant losses during the 2008/2009 financial crisis [1] - A contrarian perspective is often adopted, particularly in sectors like biotech with a "techbio" focus [1] - The analyst values the unique perspectives offered by platforms like Seeking Alpha, which aids in informed investment decisions [1]

Reuters reporting today that US authorities have been placing secret trackers into shipments of advanced semiconductors in an attempt to find chips that are being diverted into China. Christina Partzilla is digging into that story for today's tech check. And Christina, this is this is interesting.Wonder how effective that is. Yeah, it's a good point. Well, US authorities, like you said, just they may be tracking devices on shipments of advanced AI chips, but industry sources tell me we shouldn't expect to s ...