The Mother of All Cycles

This report examines the ongoing AI capital expenditure boom, highlighting the rapid rise of Chinese AI models and the structural benefits for Asian hardware and DRAM manufacturers. It also provides an updated analysis of Taiwan's AI-led economic surge and portfolio adjustments.

Key Takeaways

• 1.Chinese AI models are gaining market share due to lower costs, challenging US incumbents and encouraging corporate on-premise AI deployments.
• 2.The AI capex cycle continues unabated, benefiting 'picks and shovels' hardware providers in Asia, particularly DRAM manufacturers.
• 3.Taiwan's economic outlook remains exceptionally strong driven by the AI data center ramp-up, with TSMC significantly increasing capital expenditure.

Table of Contents

• The mother of all cycles
• Analyst Certification
• Investment Recommendation Record
• Explanation of Jefferies Ratings
• Valuation Methodology
• Jefferies Franchise Picks
• Risks which may impede the achievement of our Price Target
• Distribution of Ratings
• Other Important Disclosure

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