Meet The VCs Digging for Gold in the Gutter with Dan Teran & James Gettinger

**Guy Adami** (0:00)
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**Dan Nathan** (0:28)
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**Guy Adami** (0:31)
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**Dan Nathan** (0:36)
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**Guy Adami** (0:43)
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**Guy Adami** (0:58)
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**Dan Nathan** (1:27)
All right, welcome to the OK Computer Podcast. I am Dan Nathan, that is Guy Adami. Hi, Guy.

**Guy Adami** (1:31)
Hi, Dan, how are you?

**Dan Nathan** (1:32)
I'm doing great. We have a very special edition today, largely because you are here and you and I are going to take a rip around what's going on in the Nasdaq. Semiconductors having a day and it's not a great day, but they are coming off an all time high from yesterday. We are recording this at noon on Tuesday. So lots going on there. We're going to kind of break down what we think is going on in the major AI tech trade. I am also joined by great friends of mine. These are the founders of Gutter Capital. That would be Dan Teran and James Gettinger. Welcome back to the podcast, actually. They just launched Fund3, big cap raise there. We're going to talk a little bit about what they see in the private tech markets and their views on what's going on in the AI infrastructure build because they've taken a slightly different tack than many others in the VC community about how they are expressing views there. And they also launched their second edition of Elbow Grease. This is a accelerator for young private companies. They have a great, great program down there. They are in Chinatown and they have, I think, a couple dozen founders and operators in their offices that they help kind of accelerate their companies. So a lot of great stuff there. All right, Guy, you and I again are recording this noon on Tuesday. The SOX, the Semiconductor Index, made an all time high just yesterday. It's down 7%.
This comes after the COSPE, the South Korean Equity Index, was down 10% overnight. Now, by the way, this is an index that had doubled in the last couple of months, much like the SOX. The difference is that that is the entire South Korean stock market, and it is levered highly to Samsung and HK Hynix, which are competitors to Micron in the memory space. Guy, you see a move like we saw in the semis over the last couple of months here. You know, it's easy to call it a bubble. Everyone else is saying it's different this time. It's very clear to us what's been going on there. But when you start seeing what we saw last night in Korea, you have to start saying to yourself, wait a minute, what is the potential for this to snowball around the world?

**Guy Adami** (3:28)
I think that's exactly right. When you see a 10% move, be it up or down, in this case down, in the index of a country, in this case South Korea, you have to take notice because obviously it's not something that happens every day. We talk about four or five standard deviation moves. This is what we're seeing now.
I think a lot of people dismiss it for the reasons you just said, the fact that it's gained so much over the last month, month and a half, but that doesn't dismiss what we've seen over the last couple of days. When you see volatility both up and down the way we've been seeing it around indices, around individual names over the last couple of weeks, that to me is either emblematic of a low, in this case though, I think it's emblematic of a high, given some of the levels we've reached in some of these individual names and these indices, specifically the semiconductors. And I will tell you, the damage that's been done technically, I think over the last eight to ten trading sessions, I think it's something we'll be talking about for a long time to come.