Cameron Gleeson

An example would be, say, Intel, who have actually just increased their guidance for Q2 earnings by about 150%.

So massive uprating there.

SK Hynix, so they make memory chips.

So that's a really important part of doing AI is you need memory chips because ideally if you want to –

essentially generate good results, you need a really long context window or you need to be able to store, if you like, more context in terms of when you're doing an AI query and that requires memory chips.

SK Hynix, their earnings growth this year is over 300%, which is incredible.

I mean, the performance of share price has gone through the roof, but they still sit with a forward P of six, which is incredible.

So these, you know, foundries and the semiconductor companies have done exceptionally well this year.

And the constrained compute that we're currently seeing is seeing that the growth in CapEx is leading to strong profits for those companies.

Now, software, the application layer has suffered this year.

And those, some of the stories there have been well-documented.

We think that certainly there's going to be some good opportunities there.

The software sector is re-rated and some of those names look relatively cheap.

Their earnings haven't actually been hit.

It's more a question as to whether or not they will be able to grow earnings in the future at the same rate two or three years down the track.

But right now their earnings for this year, for example, have not been hit.

They're still great companies at least one year out.

And then there'll be obviously some winners and losers.

But I think the hyperscalers, you know, they are in a great position.

You know, semiconductors can be sometimes a cyclical industry, but owning the data, having some form of control over the models and obviously their relationship with the model providers is important there, puts them in a great place.