What I really want to get your perspective on is China's domestic supply right now and how much you've long been concerned about our exposure in the US to Taiwan and the like. How much is China making strides. Yeah, well, I think when we talk about China's ability to have an advanced semiconductor sector, the question is, can China make fabs.Can they make equipment. The question has always been, will they have access to EUV lithography tools or be able to make their own. And the reporting that came out yest ...

Core Insights - Giverny Capital Asset Management reported a third-quarter return of 6.78%, underperforming the S&P 500's 8.12% return, with a year-to-date return of 12.57% compared to the index's 14.83% [1] Group 1: Company Performance - Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) achieved a one-month return of 3.67% and a remarkable 57.27% increase in value over the last 52 weeks [2] - As of December 08, 2025, TSM's stock closed at $301.87 per share, with a market capitalization of $1.566 trillion [2] Group 2: Investment Strategy - Giverny Capital Asset Management initiated a 3.5% position in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) during the third quarter [3] - TSM operates as a foundry, manufacturing chips designed by others, contrasting with Intel's model of designing and manufacturing its own chips [3] - The company has been recognized for its leadership in semiconductor manufacturing since its founding in 1987 by Morris Chang [3]

Core Insights - Applied Materials (AMAT) anticipates significant growth in its memory segment, particularly in advanced dynamic random-access memory (DRAM) technologies, with projected revenue growth of over 40% in fiscal 2025 driven by demand for DDR5 and high-bandwidth memory [1][9] Group 1: Company Performance - In the second quarter of fiscal 2025, AMAT's advanced DRAM customers are expected to contribute to a revenue increase of more than 40% [1][9] - The Sym3 Magnum etch system has generated over $1.2 billion in revenues since its launch in February 2024 [2][9] - AMAT achieved record revenues in its Process Diagnostics and Control Business, supported by Cold Field Emission eBeam technology and advancements in 3D DRAM [3][9] Group 2: Strategic Focus - Management emphasized a focus on critical steps for next-generation DRAM, which has helped establish a strong leadership position in the market [4] - The company projects substantial increases in leading-edge DRAM investments through 2025, driven by investments in wafer fab equipment and 3D DRAM [4] Group 3: Competitive Landscape - Lam Research (LRCX) reported that DRAM accounted for 23% of its systems revenues in the third quarter of fiscal 2025, supported by customer investments in DDR5 and high-bandwidth memory [5] - ASML Holding (ASML) noted strong customer demand for its products, particularly from DRAM and logic customers utilizing its NXE:3800E EUV systems [6] Group 4: Valuation and Estimates - AMAT shares have increased by 6.8% year to date, outperforming the Electronics - Semiconductors industry, which grew by 4.3% [7] - The company trades at a forward price-to-sales ratio of 4.65X, lower than the industry average of 8X [10] - The Zacks Consensus Estimate for AMAT's fiscal 2025 and 2026 earnings implies year-over-year growth of 9.48% and 5.48%, respectively, with upward revisions in estimates for fiscal 2026 and 2027 [13]