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Oguz Erkan

@oguzerkan • 120,626 subscribers

Investor | The founder & writer of the Capitalist-Letters newsletter read in +180 countries

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$AMD CEO: “We are 2 years into 10-year AI buildout.” Lisa Su said this last year and $AMD reached an all-time high this year as GPU and CPU demand is skyrocketing. We are still at just year 3 of a decade-long infrastructure buildout. McKinsey estimates AI infrastructure spending will reach $5-$8 trillion by 2030. And then we’ll still have at least a few more years of rapid buildout to reach sufficient capacity to train next-gen models and serve every inference demand at attractive prices. Then all this infrastructure will need to be renewed every 4-5 years. Selling $AMD here means selling it just at the beginning of the largest IT buildout.

$AMD CEO: “We are 2 years into 10-year AI buildout.” Lisa Su said this last year and $AMD reached an all-time high this year as GPU and CPU demand is skyrocketing. We are still at just year 3 of a decade-long infrastructure buildout. McKinsey estimates AI infrastructure spending will reach $5-$8 trillion by 2030. And then we’ll still have at least a few more years of rapid buildout to reach sufficient capacity to train next-gen models and serve every inference demand at attractive prices. Then all this infrastructure will need to be renewed every 4-5 years. Selling $AMD here means selling it just at the beginning of the largest IT buildout.

323,080 Aufrufe

2/ Global trade was the biggest driver of prosperity in the last 80 years. Marks likens it to a wave that lifted all boats. United States also massively benefited from this. How? It turned from an manufacturing economy to a service economy.

2/ Global trade was the biggest driver of prosperity in the last 80 years. Marks likens it to a wave that lifted all boats. United States also massively benefited from this. How? It turned from an manufacturing economy to a service economy.

790,550 Aufrufe

$OSCR CFO: “It’s a great time to enter the stock.” They are guiding for $750 million operating income this year and CEO said their stock price should be $45-$55. Even if his target is off by 50%, there is at least 70% upside from here. Why wouldn’t $OSCR work from here?

$OSCR CFO: “It’s a great time to enter the stock.” They are guiding for $750 million operating income this year and CEO said their stock price should be $45-$55. Even if his target is off by 50%, there is at least 70% upside from here. Why wouldn’t $OSCR work from here?

99,007 Aufrufe

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Charlie Munger: “I've had my Berkshire stock decline by 50% three times and it doesn't bother me. It's a part of the game.” Stay calm. We are just 4% away from the all-time high. The market is up 8% despite the war. It just needs a breather. It’s normal.

Charlie Munger: “I've had my Berkshire stock decline by 50% three times and it doesn't bother me. It's a part of the game.” Stay calm. We are just 4% away from the all-time high. The market is up 8% despite the war. It just needs a breather. It’s normal.

130,747 Aufrufe • vor 3 Tagen

$AMZN CEO: “If you are building a big inference business and want decent margings, not having your custom chips is a disadvantage.” 40% of $AMZN compute comes from its custom chips. Result? AWS margins climb higher while peers lag, according to SemiAnalysis.

$AMZN CEO: “If you are building a big inference business and want decent margings, not having your custom chips is a disadvantage.” 40% of $AMZN compute comes from its custom chips. Result? AWS margins climb higher while peers lag, according to SemiAnalysis.

202,020 Aufrufe • vor 12 Tagen

Bill Ackman: “If a company is increasing growth capex while earning above average returns, you should applaud.” This is why $AMZN is my biggest position. Invests $25 billion in Anthropic to get it to commit to $100 billion in AWS spending over the next decade, while the investment itself will likely double as well. $AMZN execution has been elite since early 2025. More to come. Long $AMZN.

Bill Ackman: “If a company is increasing growth capex while earning above average returns, you should applaud.” This is why $AMZN is my biggest position. Invests $25 billion in Anthropic to get it to commit to $100 billion in AWS spending over the next decade, while the investment itself will likely double as well. $AMZN execution has been elite since early 2025. More to come. Long $AMZN.

697,702 Aufrufe • vor 1 Monat

$OSCR CEO: “Our stock should be between $45-$55 a share by the end of 2026.” Yesterday, he disclosed his purchase of almost $12 million worth of shares. An insider putting a large sum of his own money where his mouth is. That’s all you need to know.

$OSCR CEO: “Our stock should be between $45-$55 a share by the end of 2026.” Yesterday, he disclosed his purchase of almost $12 million worth of shares. An insider putting a large sum of his own money where his mouth is. That’s all you need to know.

758,272 Aufrufe • vor 2 Monaten

$AMZN AWS CEO: “All Anthropic models out today were trained on Trainium.” Trainium 2 has been sold out, Trainium 3 is almost completely subscribed and a part of Trainium 4 is already reserved. Chip division is now at $20bn annual run rate. How can’t you be bullish on $AMZN?

$AMZN AWS CEO: “All Anthropic models out today were trained on Trainium.” Trainium 2 has been sold out, Trainium 3 is almost completely subscribed and a part of Trainium 4 is already reserved. Chip division is now at $20bn annual run rate. How can’t you be bullish on $AMZN?

662,874 Aufrufe • vor 2 Monaten

If you are wondering why asset prices are tanking watch this interview of Kevin Warsh. He dislikes quantitative easing as he believes it inflates asset prices and increases inequality between workers and asset owners. Expect a tighter Fed balance sheet, so less liquidity.

If you are wondering why asset prices are tanking watch this interview of Kevin Warsh. He dislikes quantitative easing as he believes it inflates asset prices and increases inequality between workers and asset owners. Expect a tighter Fed balance sheet, so less liquidity.

1,121,331 Aufrufe • vor 4 Monaten

Ray Dalio said we are in a bubble, but we need something to prick it for it to deflate. This is what pricks it. Japan has just approved a $265 billion stimulus package while the Yen is at its weakest in a year. They'll have to hike rates eventually, and those who borrowed Yen and bought US stocks will have to exit their positions to cover increased borrowing costs, a classic unwind of the carry trade. Time to get defensive rather than offensive. You should still buy no-brainers if the market gives them away for cheap, but be careful, keep your cash pile large and your systematic risk exposure low.

Ray Dalio said we are in a bubble, but we need something to prick it for it to deflate. This is what pricks it. Japan has just approved a $265 billion stimulus package while the Yen is at its weakest in a year. They'll have to hike rates eventually, and those who borrowed Yen and bought US stocks will have to exit their positions to cover increased borrowing costs, a classic unwind of the carry trade. Time to get defensive rather than offensive. You should still buy no-brainers if the market gives them away for cheap, but be careful, keep your cash pile large and your systematic risk exposure low.

1,553,466 Aufrufe • vor 6 Monaten

Charlie Munger: “I have had my Berkshire stock decline by 50% three times and it doesn’t bother me.” Drawdowns are natural consequences of owning stocks. An average stock swings by 100% from peak-to-trough every year. If you own good businesses, there is nothing to worry about.

Charlie Munger: “I have had my Berkshire stock decline by 50% three times and it doesn’t bother me.” Drawdowns are natural consequences of owning stocks. An average stock swings by 100% from peak-to-trough every year. If you own good businesses, there is nothing to worry about.

452,839 Aufrufe • vor 2 Monaten

$NVDA CEO: “Inference demand will go up by a billion times.” We are just in the very early innings. Compute demand will likely grow by another 10x over the next decade and current TAM projections for GPU/CPU will look too conservative in hindsight. $AMD $NVDA $INTC $ARM

$NVDA CEO: “Inference demand will go up by a billion times.” We are just in the very early innings. Compute demand will likely grow by another 10x over the next decade and current TAM projections for GPU/CPU will look too conservative in hindsight. $AMD $NVDA $INTC $ARM

197,950 Aufrufe • vor 1 Monat

$AMZN CEO: “There is a power shortage in the US and the world.” For new data centers, the most optimistic grid connection wait time is 3 years as power transformer lead times stretch to 12-24 months. So, most of the developers and hyperscalers are resorting to natural gas as it’s the fastest option. But even then, permitting is still an issue and risks delays and cancellations as is the case for $NBIS New Jersey data center. Power is now a bigger bottleneck for scaling AI than it’s ever been.

$AMZN CEO: “There is a power shortage in the US and the world.” For new data centers, the most optimistic grid connection wait time is 3 years as power transformer lead times stretch to 12-24 months. So, most of the developers and hyperscalers are resorting to natural gas as it’s the fastest option. But even then, permitting is still an issue and risks delays and cancellations as is the case for $NBIS New Jersey data center. Power is now a bigger bottleneck for scaling AI than it’s ever been.

293,516 Aufrufe • vor 1 Monat

Peter Thiel: “AI chips will get commoditized.” Yes, the value in AI has largely accrued to the semiconductor level so far amd concentrated largely in $NVDA. But this is bound to change. In chips, you can stay as a monopoly only if you have an exclusive partnership with the monopoly in a downstream market. This is how $INTC dominated CPUs for decades, by partnering up with $MSFT. We can’t see such a partnership in AI, industry dynamics don’t allow it: - Downstream market is fragmented. - Price/performance drives decisions. As a result, the more AI workloads shift to inference, the more fragmented the AI accelerator market will become as inference-specific chips or custom chips of hyperscalers will be used more. Yes, it looks like most of the value has accrued to $NVDA right now but it’s almost certainly not sustainable. This is why I don’t own it despite seemingly attractive valuation. Its base is already too high and it’ll certainly struggle to maintain it let alone grow.

Peter Thiel: “AI chips will get commoditized.” Yes, the value in AI has largely accrued to the semiconductor level so far amd concentrated largely in $NVDA. But this is bound to change. In chips, you can stay as a monopoly only if you have an exclusive partnership with the monopoly in a downstream market. This is how $INTC dominated CPUs for decades, by partnering up with $MSFT. We can’t see such a partnership in AI, industry dynamics don’t allow it: - Downstream market is fragmented. - Price/performance drives decisions. As a result, the more AI workloads shift to inference, the more fragmented the AI accelerator market will become as inference-specific chips or custom chips of hyperscalers will be used more. Yes, it looks like most of the value has accrued to $NVDA right now but it’s almost certainly not sustainable. This is why I don’t own it despite seemingly attractive valuation. Its base is already too high and it’ll certainly struggle to maintain it let alone grow.

398,677 Aufrufe • vor 2 Monaten

$AMD CEO: “We will need to add 100x more compute in the next 4-5 years.” McKinsey predicts that semiconductor market will double to $1.6 trillion by 2030. Lisa Su guides for 35% annual revenue growth for $AMD by 2030. $AMD is the most compelling opportunity in the chip space.

$AMD CEO: “We will need to add 100x more compute in the next 4-5 years.” McKinsey predicts that semiconductor market will double to $1.6 trillion by 2030. Lisa Su guides for 35% annual revenue growth for $AMD by 2030. $AMD is the most compelling opportunity in the chip space.

286,606 Aufrufe • vor 1 Monat

$NVDA CEO: “Demand for inference will go up by a billion times.” $AMD will be one of the biggest winners as it has the upper hand in inference thanks to larger memory bandwith and capacity of its chips. Stock is still at 22x 2027 earnings. How can’t you be bullish on $AMD?

$NVDA CEO: “Demand for inference will go up by a billion times.” $AMD will be one of the biggest winners as it has the upper hand in inference thanks to larger memory bandwith and capacity of its chips. Stock is still at 22x 2027 earnings. How can’t you be bullish on $AMD?

282,229 Aufrufe • vor 1 Monat

No wonder Jensen got so defensive over $NVDA GPUs against custom chips. $GOOG will start using different custom chips for inference and training. $AMZN has already adopted this approach as they have Trainium for training and Inferentia for inference. Hyperscalers obviously see better price/performance in this approach, and this is where the industry is headed. $AVGO and $MRVL are poised to be big winners, while $NVDA dominance will be under increasing pressure.

No wonder Jensen got so defensive over $NVDA GPUs against custom chips. $GOOG will start using different custom chips for inference and training. $AMZN has already adopted this approach as they have Trainium for training and Inferentia for inference. Hyperscalers obviously see better price/performance in this approach, and this is where the industry is headed. $AVGO and $MRVL are poised to be big winners, while $NVDA dominance will be under increasing pressure.

223,244 Aufrufe • vor 1 Monat

Ray Dalio: “Debt problem is followed by devaluation of the currency.” Looks like this is exactly how the US will handle its debt problem. Kevin Warsh’s Fed will peg short-term rates to artificially low levels, and buy treasuries to keep them down, inflating the debt away. We saw this play out in the three decades following World War II, and it’s plausible that the US is preparing for a similar maneuver as Debt/GDP is currently over 120%. This is why central banks are dumping US debt and buying gold instead.

Ray Dalio: “Debt problem is followed by devaluation of the currency.” Looks like this is exactly how the US will handle its debt problem. Kevin Warsh’s Fed will peg short-term rates to artificially low levels, and buy treasuries to keep them down, inflating the debt away. We saw this play out in the three decades following World War II, and it’s plausible that the US is preparing for a similar maneuver as Debt/GDP is currently over 120%. This is why central banks are dumping US debt and buying gold instead.

548,382 Aufrufe • vor 3 Monaten

Stanley Druckenmiller on Copper: “It’s in the tightest position I have ever studied.” He said this in 2023 but didn’t take a position because he believed a hard landing was coming. He was wrong about the hard landing, but right about copper. Demand is exploding.

Stanley Druckenmiller on Copper: “It’s in the tightest position I have ever studied.” He said this in 2023 but didn’t take a position because he believed a hard landing was coming. He was wrong about the hard landing, but right about copper. Demand is exploding.

609,981 Aufrufe • vor 4 Monaten

$SOFI CEO: “We didn’t raise the guidance because we don’t expect any rate cuts this year.” This is a great time to enter $SOFI at a discount. They are always more conservative than the consensus, so they tend to surprise on the upside if macro conditions end up being better than they expected. We get a single cut this year and $SOFI will go brrr.. The upside vastly outstrips the downside here. Long $SOFI.

$SOFI CEO: “We didn’t raise the guidance because we don’t expect any rate cuts this year.” This is a great time to enter $SOFI at a discount. They are always more conservative than the consensus, so they tend to surprise on the upside if macro conditions end up being better than they expected. We get a single cut this year and $SOFI will go brrr.. The upside vastly outstrips the downside here. Long $SOFI.

156,675 Aufrufe • vor 1 Monat

Elon Musk: "We'll have the chip shortage now, voltage transformer shortage in a year, followed by electricity shortage." Elon said this two years ago, and we are now seeing it play out. Transformer lead times have stretched from weeks to 1-2 years, so grid connection wait times have also jumped to years. Both Goldman Sachs and Morgan Stanley are predicting a power shortage by 2028. Energy is the AI trade now. $TLN $CEG $ET $SEI $DY $BE $MTZ $PWR $MTZ

Elon Musk: "We'll have the chip shortage now, voltage transformer shortage in a year, followed by electricity shortage." Elon said this two years ago, and we are now seeing it play out. Transformer lead times have stretched from weeks to 1-2 years, so grid connection wait times have also jumped to years. Both Goldman Sachs and Morgan Stanley are predicting a power shortage by 2028. Energy is the AI trade now. $TLN $CEG $ET $SEI $DY $BE $MTZ $PWR $MTZ

589,747 Aufrufe • vor 4 Monaten

Ray Dalio: "Global monetary order is breaking." Dalio thinks the US and the allies are losing trust in one another, so central banks don't want to hold the US bonds. This is why commodities are skyrocketing, and it's not going to reverse anytime soon. His advice? Buy gold.

Ray Dalio: "Global monetary order is breaking." Dalio thinks the US and the allies are losing trust in one another, so central banks don't want to hold the US bonds. This is why commodities are skyrocketing, and it's not going to reverse anytime soon. His advice? Buy gold.

490,986 Aufrufe • vor 4 Monaten

$ORCL CEO: “If OpenAI can’t buy, we can sell to others. I am considering going long $ORCL. I was skeptical of their OpenAI exposure, but it’s irrelevant now. The demand is so excessive that they can easily sell to someone else. What are you thinking? $ORCL long sounds good?

$ORCL CEO: “If OpenAI can’t buy, we can sell to others. I am considering going long $ORCL. I was skeptical of their OpenAI exposure, but it’s irrelevant now. The demand is so excessive that they can easily sell to someone else. What are you thinking? $ORCL long sounds good?

183,004 Aufrufe • vor 1 Monat