
Multi-year, prepaid LTAs with high floors signal tight memory supply into 2030; AI semi theme stays best bet.
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Returning to the market, despite the volatility caused by hourly Iranian headlines, we think alpha remained clear. Some of our highlighted names hit new ATHs (such as LITE and TSEM), while others reached new 52-week highs (INTC). With macro uncertainty looming as we enter Mag7 earnings, we believe the best way to navigate market turbulence is to stick with the top AI semiconductor theme. Stay frosty!
Memory LTAs have fundamentally changed. Historically, long term agreements (LTAs) were tools for memory vendors to protect themselves. Now, customers use them to secure their own supply. Vendors are mandating multi-year contracts with prepayments and high floor prices. We believe supply constraints may persist through 2030.
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