Topic
The company added generative features to its core product and then did something unusual, which was to disclose what running them costs. Gross margin has fallen nine points in six quarters.
Wafer fab equipment spending is on course for a fourth consecutive up year. Booking patterns at the equipment makers point to a pause that the chip price data has not caught up with yet.
Every great capital cycle in history was justified by demand that genuinely existed. The demand has never been the question. The question is what happens to returns once everybody can see it at the same time.
Front end capacity for the logic die is adequate and getting more so. The capacity to stack memory on top of that die and mount the result on a substrate is not, and it takes eighteen months to add.
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