The Billion-Dollar AI Bottleneck — Why This Tech Giant Controls the Future of Nvidia

**SPEAKER_1** (0:00)
Let's talk about SK. Hynex. IPO this Friday, I believe. Big, big, big IPO. Something that's, a lot of people have different theories on this. Some people think it's gonna really hurt Micron. Some people think that it's a sign that this memory sector is coming to a halt. Because it's like, when you start to see a lot of IPOs, it's like, let's get in while there's still room. Like, let's get as much as we possibly can before the gig is up. Some people say that this is just the beginning of the memory sector, and this is something that's encouraging.
I don't know, Korean company.
This is probably gonna be another billion dollar, I mean trillion dollar.

**Ian** (0:51)
Well, it's already there.

**SPEAKER_1** (0:53)
I was on IPO, like it's soon like first day out, like, so this is like a SpaceX situation all over again. It's not as popular as SpaceX.

**Ian** (1:04)
Yeah.

**SPEAKER_1** (1:04)
But this is gonna be like a new SpaceX situation.

**Ian** (1:08)
I want to compare it to SpaceX in terms of, well, SpaceX is a new company that's IPO-ing and it had a $1.8 trillion violation. This is already a $1.1 trillion company that is IPO-ing to raise capital. Obviously, it's trading in South Korea. Yeah. So, the idea of raising capital, I get it from that standpoint. Well, why raise capital now? Well, they understand, and this is just my bull case on it, they understand the moment, right? Like we saw that the demand for GPUs was a bottleneck.
We've got that under control. Well, now the bottleneck is memory and they lead the world. Like I know we want to talk about Micron and we love Micron, but the world leader in high-bandwidth memory is SK Hynex. And so the US stock market is a place where you can raise capital and give exposure. Most people, if you've been watching this show, if you're in EYL University or if you're in Red Panda, you've already had exposure to SK Hynex, right? So if you bought DRAM, the ETF, that has a 24% allocation, so you've already been there. The idea that now you can individually have access to it is a game changer. And so that goal, they expect to raise additional 29 billion. Well, why would they want to raise 29 billion? Because of the demand, right? They have to build new fabs. They have to expand the high bandwidth. What's interesting is that they're actually talking about advanced packaging. So that's something that's pretty interesting to me, because when I think advanced packaging, I think Taiwan Semiconductor. So that talks about more demand in that space, but they're also directly going to start buying machinery, the EUV machines, from ASML, which is, we talked about that, that's a $400 million expense for one machine. So think about that. How many companies are even in the realm of buying one? So they're going to have multiple machines. They're expanding. They already talked about what they're doing in South Korea.
July 10th, they're supposed to IPO here. How will it affect the memory sector? I think it's a clear indication that demand is still here. The memory sector is still going to be an issue or definitely a high concern over the next two to three years from what we saw from Mike Brown's report. I see Samsung just reported.
I'll be interested to see how they did today. Obviously, they're doing on a COSPI index, so they're in South Korea.
And then this IPO Friday, it'll be a clear indication of, hey, either we're resetting the levels because the valuations are too high or we're going to match these levels and say, here we go on another run. So the idea of Samsung today or tonight or tomorrow, this morning, if you're watching, or on July 10th, which is Friday, SK Hynix, ISPOs, ASML will be reporting on Tuesday, TSM on Wednesday. The demand story will come to the forefront in the next five to seven days. And so that's what we should be watching for.

**SPEAKER_1** (3:59)
And yeah, for the people, people put in chat, it actually is not an IPO, it's an ADR. So it's already a public created company, but it's getting debuted to the American market.
On the American exchange. So it's not an initial, it's not an initial public offering, but similar as far as people in America now have access to invest in it. But Ian, what's your thoughts on this? And what's your thoughts on the memory sector? Like how does this impact the memory sector?

**SPEAKER_3** (4:26)
I think there's a lot of, and I went through this with Nvidia, Troy, I'm sure you're going to agree. A lot of people who missed out on the memory run up are doing the Michael Burry and they're requesting a crash. So because you missed out, you want these companies to fail. When we're talking about, let's say Micron falls 50 percent, which you want. Most people aren't going to buy it at 50 percent dip. I think will Micron lose some share? I think it adjusts. It'll be like Nvidia and AMD. I think both are incredibly valuable. The other argument is there's so much interest in this one.