AkhenOsiris
The rich will get richer...top 10% will need to do 90%+ of the consumer spending
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The rich will get richer...top 10% will need to do 90%+ of the consumer spending
Hill I will die on:
AI = Permanent Massive Job Losses Ahead
Yes, new industries will be born but will it be enough to make up for the reckoning ahead.
1.Jim Farley (CEO, Ford): “AI will replace half of all white-collar workers in the US.”
2.Dario Amodei (CEO, Anthropic): “White-collar bloodbath” — up to 50% of entry roles gone in 5 yrs.
3.Andy Jassy (CEO, Amazon): “We will need fewer people … this will reduce our total corporate workforce.”
4.Allison Kirkby (CEO, BT Group): AI could make layoffs “even deeper” than planned.
5.Arvind Krishna (CEO, IBM): ~7,800 roles could be automated out; paused hiring in replaceable areas.
6.Doug McMillon (CEO, Walmart): “AI is going to change literally every job.”
7.Marc Benioff (CEO, Salesforce): Cut 4,000 support jobs; AI now handles ~50% of calls.
8.Sebastian Siemiatkowski (CEO, Klarna): Workforce shrank from ~5,500 to ~3,000 via AI efficiency.
9.Jamie Dimon (CEO, JPMorgan Chase): AI will “take over jobs in certain departments” while creating others.
10.Sam Altman (CEO, OpenAI): Entire job categories will be “totally, totally gone.”
11.Jensen Huang (CEO, Nvidia): “Some jobs will be lost.”
12.Satya Nadella (CEO, Microsoft): AI will automate parts of many jobs.
13.Sundar Pichai (CEO, Alphabet/Google): AI will “transform jobs,” including eliminating some.
14.Elon Musk (CEO, Tesla / SpaceX / X): Warns AI / automation could “destroy jobs.”
15.Bill Gates (Co-founder, Microsoft): Automation / AI may wipe out many roles; has advocated policies to manage it.
https://t.co/1eK22p8MxM Gawdat (former Google X exec): “AI will wipe out jobs … even CEOs might be replaced.”
17.Geoffrey Hinton (AI pioneer): Warns of a future where “we may no longer be needed.”
18.Andrew Ng (AI researcher / entrepreneur): Says routine legal, clerical, coding work is under threat.
19.Kai-Fu Lee (CEO, Sinovation Ventures / ex-Google China): Predicts “routine cognitive work” will vanish.
20.Dilip Shanghvi (MD, Sun Pharma): Warns AI / automation will shrink roles in pharma / industry.
21.Eric Schmidt (former CEO, Google): Has cautioned that AI’s evolution has trade-offs, including job displacement.
22.Steve Wozniak (co-founder, Apple): Warned superintelligence may bring unprecedented disruption to work and society.
23.Yoshua Bengio (AI researcher / leader): Has voiced concerns about automation and risks to employment systems.
24.Stuart Russell (CS / AI leader): Argues AI control must address displacement and job risk.
25.Dov Seidman (former CEO, LSI / author): Has spoken publicly about AI’s threat to professional jobs and ethics.
26.Reid Hoffman (co-founder, LinkedIn): Warned AI tools will outpace many incumbents, displacing roles.
27.Jensen Huang (again, to emphasize contrast): even he concedes “some jobs will be lost.”
28.Mark Cuban (entrepreneur / investor): Frequently warns AI will disrupt many professions and reduce demand for human labor.
29.Jack Ma (co-founder, Alibaba): Historically warned that automation will replace people if they don’t upskill.
30.Eric Yuan (CEO, Zoom): Has acknowledged that machine intelligence / automation could “replace many tasks people do today.” tweet
Offshore
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Dimitry Nakhla | Babylon Capital®
RT @DimitryNakhla: A quality valuation analysis on $LRCX 🧘🏽♂️
•NTM P/E Ratio: 16.66x
•10-Year Mean: 20.20x
•NTM FCF Yield: 6.80%
•10-Year Mean: 5.51%
As you can see, $LRCX appears to be trading below fair value
Going forward, investors can receive ~21% MORE in earnings per share & ~23% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $LRCX is a good business
BALANCE SHEET✅
•Cash & Short-Term Inv: $5.67B
•Long-Term Debt: $4.48B
$LRCX has a strong balance sheet, an A- S&P Credit Rating & 25x FFO Interest Coverage
RETURN ON CAPITAL✅
•2021: 40.0%
•2022: 46.8%
•2023: 39.3%
•2024: 31.3%
•LTM: 34.9%
RETURN ON EQUITY✅
•2021: 69.8%
•2022: 74.8%
•2023: 62.3%
•2024: 45.7%
•LTM: 50.4%
$LRCX has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2014: $4.61B
•2024: $14.91B
•CAGR: 12.45%
FREE CASH FLOW✅
•2014: $571.55M
•2024: $4.26B
•CAGR: 22.24%
NORMALIZED EPS✅
•2014: $0.44
•2024: $3.03
•CAGR: 21.28%
PAID DIVIDENDS✅
•2019: $0.44
•2024: $0.80
•CAGR: 12.70%
SHARE BUYBACKS✅
•2015 Shares Outstanding: 1.77B
•LTM Shares Outstanding: 1.30B
By reducing its shares outstanding ~26%, $LRCX increased its EPS by ~35% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 47.7%
•LTM Operating Margins: 29.7%
•LTM Net Income Margins: 26.5%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~21% MORE in EPS & ~23% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $LRCX has to grow earnings at an 8.33% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2025 - 2028 EPS growth over the next few years to be more than the (8.33%) required growth rate:
2025E: $3.75 (23.7% YoY) *FY Jun
2026E: $3.88 (3.6% YoY)
2027E: $4.65 (19.8% YoY)
2028E: $5.50 (18.3% YoY)
$LRCX has a decent track record of meeting analyst estimates ~2 years out, but let’s assume $LRCX ends FY 2028 with $5.50 in EPS & see its CAGR potential assuming different multiples:
20x P/E: $110.00💵 … ~20.2% CAGR
19x P/E: $104.50💵 … ~18.3% CAGR
18x P/E: $99.00💵 … ~16.4% CAGR
17x P/E: $93.50💵 … ~14.3% CAGR
16x P/E: $88.00💵 … ~12.2% CAGR
While it’s certainly reasonable for $LRCX to trade for 18x - 20x, I wouldn’t want to rely on that assumption as it doesn’t leave us with a substantial margin of safety
Yet, $LRCX still appears to have attractive return potential if we assume 16x - 17x, a multiple that’s justified by its excellent capital allocation, wide moat & growth rate
Moreover, $LRCX derives a large portion of its revenues from memory chip production, which is a strong growth driver for the company
~40% of revenue comes from recurring-like services, making $LRCX more predictable softening sector volatility
Today at $63💵 $LRCX appears to be a great consideration, with some margin of safety
Given its high uncertainty, I’d buy in tranches and leave some room to add more if it declines further, e.g. 1/3 at $63, 1/3 at $55, 1/3 at $50
___
𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭.
𝐓𝐡𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐢𝐬 𝐢𝐧𝐭𝐞𝐧𝐝𝐞𝐝 𝐟𝐨𝐫 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐫𝐩𝐨𝐬𝐞𝐬 𝐨𝐧𝐥𝐲 𝐚𝐧𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐛𝐞 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐞𝐝 𝐚𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐝𝐯𝐢𝐜𝐞 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐭𝐡𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐧𝐞𝐞𝐝𝐬 𝐨𝐟 𝐚𝐧𝐲 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐨𝐫 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧. 𝐏𝐚𝐬𝐭 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐢𝐬 𝐧𝐨 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐨𝐟 𝐟𝐮𝐭𝐮𝐫𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬.
𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐨𝐛𝐭𝐚𝐢𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞, 𝐛𝐮𝐭 𝐢𝐬 𝐧𝐨𝐭 �[...]
RT @DimitryNakhla: A quality valuation analysis on $LRCX 🧘🏽♂️
•NTM P/E Ratio: 16.66x
•10-Year Mean: 20.20x
•NTM FCF Yield: 6.80%
•10-Year Mean: 5.51%
As you can see, $LRCX appears to be trading below fair value
Going forward, investors can receive ~21% MORE in earnings per share & ~23% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $LRCX is a good business
BALANCE SHEET✅
•Cash & Short-Term Inv: $5.67B
•Long-Term Debt: $4.48B
$LRCX has a strong balance sheet, an A- S&P Credit Rating & 25x FFO Interest Coverage
RETURN ON CAPITAL✅
•2021: 40.0%
•2022: 46.8%
•2023: 39.3%
•2024: 31.3%
•LTM: 34.9%
RETURN ON EQUITY✅
•2021: 69.8%
•2022: 74.8%
•2023: 62.3%
•2024: 45.7%
•LTM: 50.4%
$LRCX has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2014: $4.61B
•2024: $14.91B
•CAGR: 12.45%
FREE CASH FLOW✅
•2014: $571.55M
•2024: $4.26B
•CAGR: 22.24%
NORMALIZED EPS✅
•2014: $0.44
•2024: $3.03
•CAGR: 21.28%
PAID DIVIDENDS✅
•2019: $0.44
•2024: $0.80
•CAGR: 12.70%
SHARE BUYBACKS✅
•2015 Shares Outstanding: 1.77B
•LTM Shares Outstanding: 1.30B
By reducing its shares outstanding ~26%, $LRCX increased its EPS by ~35% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 47.7%
•LTM Operating Margins: 29.7%
•LTM Net Income Margins: 26.5%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~21% MORE in EPS & ~23% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $LRCX has to grow earnings at an 8.33% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2025 - 2028 EPS growth over the next few years to be more than the (8.33%) required growth rate:
2025E: $3.75 (23.7% YoY) *FY Jun
2026E: $3.88 (3.6% YoY)
2027E: $4.65 (19.8% YoY)
2028E: $5.50 (18.3% YoY)
$LRCX has a decent track record of meeting analyst estimates ~2 years out, but let’s assume $LRCX ends FY 2028 with $5.50 in EPS & see its CAGR potential assuming different multiples:
20x P/E: $110.00💵 … ~20.2% CAGR
19x P/E: $104.50💵 … ~18.3% CAGR
18x P/E: $99.00💵 … ~16.4% CAGR
17x P/E: $93.50💵 … ~14.3% CAGR
16x P/E: $88.00💵 … ~12.2% CAGR
While it’s certainly reasonable for $LRCX to trade for 18x - 20x, I wouldn’t want to rely on that assumption as it doesn’t leave us with a substantial margin of safety
Yet, $LRCX still appears to have attractive return potential if we assume 16x - 17x, a multiple that’s justified by its excellent capital allocation, wide moat & growth rate
Moreover, $LRCX derives a large portion of its revenues from memory chip production, which is a strong growth driver for the company
~40% of revenue comes from recurring-like services, making $LRCX more predictable softening sector volatility
Today at $63💵 $LRCX appears to be a great consideration, with some margin of safety
Given its high uncertainty, I’d buy in tranches and leave some room to add more if it declines further, e.g. 1/3 at $63, 1/3 at $55, 1/3 at $50
___
𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭.
𝐓𝐡𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐢𝐬 𝐢𝐧𝐭𝐞𝐧𝐝𝐞𝐝 𝐟𝐨𝐫 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐫𝐩𝐨𝐬𝐞𝐬 𝐨𝐧𝐥𝐲 𝐚𝐧𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐛𝐞 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐞𝐝 𝐚𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐝𝐯𝐢𝐜𝐞 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐭𝐡𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐧𝐞𝐞𝐝𝐬 𝐨𝐟 𝐚𝐧𝐲 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐨𝐫 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧. 𝐏𝐚𝐬𝐭 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐢𝐬 𝐧𝐨 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐨𝐟 𝐟𝐮𝐭𝐮𝐫𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬.
𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐨𝐛𝐭𝐚𝐢𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞, 𝐛𝐮𝐭 𝐢𝐬 𝐧𝐨𝐭 �[...]
Offshore
Dimitry Nakhla | Babylon Capital® RT @DimitryNakhla: A quality valuation analysis on $LRCX 🧘🏽♂️ •NTM P/E Ratio: 16.66x •10-Year Mean: 20.20x •NTM FCF Yield: 6.80% •10-Year Mean: 5.51% As you can see, $LRCX appears to be trading below fair value Going…
�𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐝 𝐚𝐬 𝐭𝐨 𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐧𝐞𝐬𝐬 𝐨𝐫 𝐚𝐜𝐜𝐮𝐫𝐚𝐜𝐲.
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Offshore
Video
Umesh
Facts! 😹
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Facts! 😹
We continue to burn billions so that we can train AI models to make cute cat videos! https://t.co/ftaFRFkqRe tweet
Offshore
Photo
Umesh
Awesome prompt! https://t.co/ra4OXDZhqo
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Awesome prompt! https://t.co/ra4OXDZhqo
🎨 OBSCURED BY LIGHT 🎨
Prompt :
[SUBJECT] Obscured by Light. The subject is almost entirely hidden by an overwhelming light source, with only its edges and faint details visible. Employ [COLOR1] and [COLOR2] to define the blinding light
Check ALTS https://t.co/kHScAlfa90 tweet
Offshore
Video
Umesh
Take 12!
Prompt ⤵️ https://t.co/q9l0J7Uv8C
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Take 12!
Prompt ⤵️ https://t.co/q9l0J7Uv8C
Take 11!
Text to video : @Hailuo_AI
Creative Upscale : @topazlabs Astra
SFX : ElevenLabs
Prompt ⤵️ https://t.co/YC3LvKL5pG tweet
Offshore
Video
David Colombo
I’d been pretty skeptical about Sora 2 over the past couple of days, but after finally trying it, I’m blown away. Everything I included in the prompt actually showed up — it’s incredible. Prompt in comments. https://t.co/AWA2K5DUMM
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I’d been pretty skeptical about Sora 2 over the past couple of days, but after finally trying it, I’m blown away. Everything I included in the prompt actually showed up — it’s incredible. Prompt in comments. https://t.co/AWA2K5DUMM
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