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Sunday, November 8, 2026

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@aleabitoreddit

Serenity on X

It think it's stupid that "AI Bubble" gets used over and over. In infra names you have: - 1-3x fwd P/E memory companies from Samsung to $ESMT. With HBM players now having hyperscaler multi-year price floor LTAs. - Optical companies like $POET traded -$97M under net cash. Valuing the operating business very negatively, not even at $0. - While AI companies with larger premiums continue to record demand over the next 3-5 years. Such as the new $20B LTAs signed w/ $COHR to $5B LTAs signed w/ $LITE. Can someone in the media honestly see negative EV high-beta optical companies, where 2 years of burnrate would still value the company below $0. or single digit memory companies with contracted demand + price floors years out and say that's a bubble? Many of these names are extremely profitable today... But obviously there's other elements inside the theme, such as: - Certain startups like Instinct that look like a private valuation bubble. - Leveraged Neoclouds that didn't finance properly - and AI lab valuations and commitments, which should be viewed cautiously. But everything gets grouped into one with the boogyman of "leverage" or "debt". Yes, valuations can compress or correct from macro, potential regulatory uncertainty, or potential capex reductions. But for the companies physically powering the AI buildout, it looks more like the Great AI Deleveraging of 2026... Than anything like fundamental demand destruction. As more earnings come out and free cash flow accumulates over time. I'm confident in a recovery, especially in bottlenecks, and for markets to eventually discern durability + growth over frothy valuations tied to AI.
@aleabitoreddit

Serenity on X

The two things I'm excited about are Gen G vs. T1... and new NASA's $10 Billion contract to begin settling on the moon. NASA selected: - $SPCX (SpaceX) - Blue Origin - $FLY (Firefly) - $LUNR (Lunar) - $LMT (Lockheed Martin Space) - $NOC (Northrop Grumman Space) - $VOYG (Voyager) - iSpace US to compete for future lunar delivery missions - $1.3B in launch and orbital transportation orders awarded to Arrow Science, Blue Origin, and Impulse Space. - $94 million for Blue Origin to deliver NASA's nuclear powered PROMISE rover - Existing CLPS 1 contract ceiling raised from $2.6B to $4.2B. - NASA also announced awards to Honeybee Robotics, a Blue Origin company, $RDW for a lunar power and communications tower
@leevalueroach

Lee Roach on X

Any rational person should lever themselves up until infinity on 0% convertible debt when rates are pushing 6%. You would be irrational to not do that. Especially if you are any good at capital allocation. How do you think $GME got $5bn of cash on the balance sheet and 10% of eBay. Oh and they made over $1bn in mark to market returns on eBay so far. And 6% on the remaining $5bn is $300 million of interest income per year. All for a zero percent convert that is still out of the money. One of the best capital allocation moves I’ve ever seen on Wall Street.
@SouthernValue95

SouthernValue on X

When I do AI supply and demand modeling, everything ex-SPCX generally fits together and makes sense and is reasonably well funded. No individual large build looks too excessive because, for the most part, large projects are pre sold before they are built, or at least before they are completed… Anthropic can fund its ambitions for the next few years pretty easily with ARR and cash on hand. Even OpenAI is sitting on a mountain of cash and can fund the majority of compute with ARR. The hyperscale clouds are allocating between internal, lab, and enterprise use cases. This changed w/ $SPCX who is trying to build ~40% of 2026 capacity next year but without a secured buyer. Just a massive bet that industry capacity plans will undershoot realized demand by a wide margin. This is the most obvious way this becomes a glut. And everything else will mostly be contracted, with spcx holding most of the bag. They also have BY FAR the most financial upside if conditions remain tight, because of their chosen path to live and die by the spot market. But I find it puzzling that markets have really not challenged them more, particularly as broadly the risk of a cyclical peak comes into focus. When parties as risk seeking as OpenAI @sama have called them speculative (one of only 2-3 potential buyers of SPCX capacity…). Also SPCX two existing customers are abundantly clear that they view their contracts as short-term / bridge capacity and intend to churn off as new cheaper capacity comes online at ~1/5 of the price.

Investor Letters

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Axon 3Q26 Business Update

Axon cut full-year guidance after delayed federal Dedrone contracts slowed 3Q revenue growth to 28%, while software and services grew 43%.

AXON $31B
Speedwell Memos 3 clicks

AMD Q3 FY26, Annotated

AMD's Q3 revenue rose 45% to $13.4 billion as data center reached $8.5 billion, 64% of sales, driven by EPYC and Instinct ramps.

AMD $660B
Chipstrat 2 clicks

Research Roundup Vol. LV

OpenAI’s enterprise privacy push and Synopsys’s Factory 2 royalty model anchor a technology roundup, alongside oil above $100 and Bitcoin’s…

SNPS $89B
Monte Independent Investment Research
VEEV · long

Veeva Systems INC

Veeva Systems is a vertical software company valued as if its best growth years are behind it.

VEEV $49B
Value Investors Club

New Position (ONON): Game is On

On Holding (ONON) is gaining sportswear share, expanding store space and launching soccer with Kylian Mbappé as investors debate U.S.

ONON $13B
Aurelion Research 4 clicks

When the Ads Come to the Data

Meta’s Muse could place ads inside its AI agent by letting a private VM select offers from advertisers without sharing user data with…

META $1.6T
MBI Deep Dives 7 clicks

Deep Dive: Intuit ($INTU)

Intuit’s $21.4 billion software franchise faces AI-driven pricing pressure in tax and accounting, even as QuickBooks and TurboTax retain…

INTU $92B
Rebound Capital 4 clicks

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