“There is fine print that is a little bit buried here, and that’s that the Arizona-made wafer still needs to be shipped back to Taiwan for the advanced packaging.” – 01:21
Evelio Silvera, Co-Founder of Bull Street Media, joins Remy Blaire to discuss the latest developments in the semiconductor industry and the evolving landscape of Bitcoin mining.
The segment begins with a focus on NVIDIA and Taiwan Semiconductor Manufacturing Company (TSMC), which have successfully produced the first Blackwell chip wafer in Arizona. Remy highlights this achievement as a significant milestone for American semiconductor manufacturing, especially in the context of the ongoing AI race and trade tensions with China. Evelio provides insights into the implications of this development, noting that while the wafer is made in the U.S., it still requires advanced packaging in Taiwan. He emphasizes that this reveals a gap between the political narrative surrounding U.S. manufacturing and the current manufacturing realities, indicating that full domestic production is still a few years away.
The conversation then shifts to the trend of Bitcoin miners transitioning to AI data centers. Evelio explains how these companies are pivoting due to the economic challenges faced in crypto mining, particularly after the recent halving event. He discusses how miners are leveraging their existing infrastructure and access to cheap power to meet the growing demands of AI, with some companies, like Marathon Digital and Core Scientific, already making significant moves in this direction. Evelio points out that while Bitcoin ASICs are not suitable for AI workloads, the miners are well-positioned to adapt and invest in the necessary technology.
As the segment progresses, Remy and Evelio turn their attention to the ongoing earnings season, discussing what to watch for in reports from major consumer and tech companies, including Netflix and Tesla. Evelio outlines key indicators to monitor, such as consumer resilience, the sustainability of AI capital expenditures, and the impact of rising labor costs on profitability. He warns that while many anticipate a soft landing for the economy, subtle signals in earnings reports could indicate potential weaknesses.