I really enjoyed reading this, I'm always learning something new when reading your work! This aligns with what I've thought despite me not being a tech person by any means. It's *very* interesting to me that banks + PE houses are underwriting billlions in chip-backed loans (or collateralised chip obligations [CCOs] as I like to call them) based on rapidly depreciating tech. I'm publishing a piece that explores the math of CCOs in a few days too.
Financing end of this world, yes ...well that's where my mind went (after having been exercised by all the physics and electrical engineering calisthenics) :)
Nice comment. But, might we substitute for "rapidly depreciating" (advanced depreciation tax code aside) "rapidly obsoleting"? NVDA five year old chips are still in full use even though after a five year depreciation schedule are financially measured at disposable value.
Movellus develops intelligent clock networks for chips: https://finance.yahoo.com/news/movellus-partners-synopsys-deliver-power-150000615.html Intel seems to have a similar DVFS.
I really enjoyed reading this, I'm always learning something new when reading your work! This aligns with what I've thought despite me not being a tech person by any means. It's *very* interesting to me that banks + PE houses are underwriting billlions in chip-backed loans (or collateralised chip obligations [CCOs] as I like to call them) based on rapidly depreciating tech. I'm publishing a piece that explores the math of CCOs in a few days too.
thanks! excited to read it. yes, the financing end of this world is pretty wild....
Hey Meg, I’ve finally published the CCO post I mentioned in my original comment. Let me know what you think!
https://lesbarclays.substack.com/p/collateralized-chip-obligations?r=rq26d&utm_medium=ios
Financing end of this world, yes ...well that's where my mind went (after having been exercised by all the physics and electrical engineering calisthenics) :)
Nice comment. But, might we substitute for "rapidly depreciating" (advanced depreciation tax code aside) "rapidly obsoleting"? NVDA five year old chips are still in full use even though after a five year depreciation schedule are financially measured at disposable value.
A lot of genius here... but my brain goes wondering to wondering what the investment opportunity is in the short-term (if I may)?