Matt Frankel

You know, AMD already has enough capacity for what it's doing now.

It has somewhat of a backlog, but it's very managed.

And I mean, the big question is, you know, how long can we see this exponential growth go for?

And how much are they going to invest in infrastructure and production capacity and things like that before things turn?

And that's really, you know, because right now supply and demand are clearly not in equilibrium, right?

I mean, there's far more demand than there is supply in the chip making industry.

That's why we're seeing companies like Micron, you know, the memory companies, you know, they literally can't build their products fast enough.

Same with NVIDIA and AMD.

You know, NVIDIA used the word sold out in its latest earnings report several times to talk about products.

So,

For now, yes, there is a backlog on the ASML, the equipment that the chip makers are using to make their products.

But right now, it's working out in the favor of AMD and NVIDIA.

With ARM, and I'm curious to get John's thoughts here, it's a little bit of a different animal.

Can they scale quickly enough while the demand is still on the rise, while they still have the ability to turn this into a significant revenue stream?

And I don't know the answer to that.

First of all, everything you said was right.

And it's also rare for a company to miss revenue expectations on top of everything you just mentioned and then rise the next day.

That's pretty rare.

I mean, in addition to Q2 guidance was a little stronger than expected.

That's usually not enough to completely offset a revenue miss and rising costs.