Manufacturing

Inside every smartphone, laptop, PC, smart speaker, smart TV, digital camera, USB flash drive and gaming console is a memory chip. And then there are industrial, medical and military applications. As an aside, Dramatic Random Access Memory (DRAM) and Not And (NAND) are the high-volume, commodity memory semiconductor components, working together in every device. DRAM requires power and manages your data, while NAND, which does not require power, stores your data. continue…

by Roger Montgomery Posted in Insightful Insights, Manufacturing, Market commentary, Technology & Telecommunications.

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In this video insight, I explain why I believe investors should look beyond the strong earnings and seemingly reasonable valuations driving enthusiasm for artificial intelligence (AI). I examine questions surrounding optimistic market assumptions, insider selling incentives, the economics of AI, rising debt levels, weakening cash flows, and whether reported earnings are overstating the sector’s underlying profitability. I also argue that low price-to-earnings (P/E) ratios do not necessarily protect markets from significant corrections and suggest the real bubble may lie in AI earnings expectations rather than share prices. continue…

by Roger Montgomery Posted in Economics, Editor's Pick, Global markets, Investing Education, Manufacturing, Market commentary, Video Insights.

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The rush to Electric Vehicle (EV) ‘adoption’ surged globally following the outbreak of the war in Iran and the subsequent spike in fuel prices. In Europe, new EV registrations rose by roughly 34 per cent year-on-year (YoY) across 17 major markets, while some automakers like Renault reported a 50 per cent jump in their EV order books. 

Here in Australia, new EV uptake jumped nearly 50 per cent in the first month of the conflict, nearly doubling YoY sales to account for 14.6 per cent of all new car sales.

That these buyers weren’t buying before the war began might say something about motivations: less about being environmentally friendly and more about saving the hip pocket. continue…

by Roger Montgomery Posted in Manufacturing, Market commentary.

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Scott Galloway is an American academic, author, podcast host, and serial entrepreneur. He’s best known as a Clinical Professor of Marketing at the New York University Stern School of Business and a prominent commentator on big tech, modern economics, and social trends.

Galloway has recently and publicly joined the ranks of stock market bears, predicting we’re on the precipice of a US$10 trillion wipeout while immediately noting he, “gets this wrong all the time [so] this is not financial advice.” continue…

by Roger Montgomery Posted in Energy / Resources, Manufacturing, Market commentary, Market Valuation.

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There’s a thesis many investors are now positioning for: The artificial intelligence (AI) infrastructure buildout being led by the hyperscalers can’t proceed without copper, silver, and other critical metals, such as scandium. Their conclusion is that commodity prices will rocket higher if the the A.I. revolution continues.

Current forecasts suggest the combined capital expenditure of Amazon, Google, Meta, and Microsoft will reach US$715 billion in 2026, up 98 per cent on 2025 and nearly three times their combined capital expenditure (capex) in 2024. continue…

by Roger Montgomery Posted in Energy / Resources, Manufacturing, Market commentary, Technology & Telecommunications.

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Trump recently boasted on Truth Social of the US$45 billion he made for the U.S. by investing in Intel. continue…

by Roger Montgomery Posted in Manufacturing, Market commentary, Technology & Telecommunications.

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An oft-made and persistent mistake investors make is assuming what’s worked recently will continue to work indefinitely.

Referred to as ‘representativeness” it’s a psychological recency bias trap. Essentially, the comfort of the current winners prompts us to ‘bottom drawer’ them and simultaneously blinds us to the inevitability of economic cycles. Indeed, despite historical evidence of economic cycles and industry leadership change, we prefer the path of least resistance, which means hanging onto current winners, hoping they will always be so. continue…

by Roger Montgomery Posted in Companies, Manufacturing, Market Valuation.

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Should persistent inflation drive a portfolio shift?

Helped by a 12 per cent rally since the war-inspired low recorded on March 30, the U.S. S&P 500 index is now at new all-time highs and more than two per cent above its previous all-time high recorded in February. 

It’s reasonable to conclude the global and U.S. economies are healthy and booming, as is the AI rollout. But those booms, along with the shocks stemming from war in the Middle East, may be sowing the seeds of a pivot and an inflation threat that could have serious implications for portfolio construction. continue…

by Roger Montgomery Posted in Economics, Editor's Pick, Energy / Resources, Global markets, Insightful Insights, Manufacturing, Market commentary, Market Valuation, Technology & Telecommunications.

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I joined ABC News to discuss the market reaction to the escalating conflict in the Middle East. Surging oil prices and concerns about supply disruptions have rattled global markets, prompting investors to reassess risks and reduce exposure to equities.

Watch here: ABC The Business. continue…

by Roger Montgomery Posted in Economics, Energy / Resources, Global markets, Manufacturing, Market commentary, TV Appearances.

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Last year, I posted a blog entitled ‘But Nothing’s Changed’, describing how the artificial intelligence (AI) bubble and market boom could end. I explained how investors will realise that even though AI technology – hailed as the 4^th Industrial Revolution – will change the course of human history, it probably won’t do so tomorrow. And therefore, share prices were at risk of setbacks because there will be commercial bumps (delays in data centre builds, changes in interest rates, shortages of energy and water, and not all companies can win) along the way to an AI ‘utopia’. While timing a change in sentiment is impossible, the hype surrounding general-purpose technologies, including AI, makes such a change inevitable. It’s always been so. continue…

by Roger Montgomery Posted in Manufacturing, Market commentary, Technology & Telecommunications.

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