Good analysis on the semiconductor secttor momentum and AI infrastructure dynamics. Your point about "ancillary tech areas (data centres, servers, memory)" benefiting from AI hardware demand is crucial for understanding the broader semiconductor landscape beyond just the headline GPU makers. Companies like Analog Devices (ADI) are perfectly positioned here - they provide the essential analog and mixed-signal components (power management ICs, signal processing, precision converters) that enable data center infrastructure and AI systems to function. While Nvidia gets the AI spotlight, ADI's high-performance analog products are quietly enabling the power delivery, thermal management, and signal integrity that AI accelerators require. Your observation about trade/export risk is particularly relevant for ADI since they have significant exposure to industrial and automotive markets in China - any escalation in chip sanctions could impact their revenue mix. The easing inflation backdrop you mention could be a tailwind for ADI's valuation, as their long-cycle industrial and automotive design wins (which have been in inventory correction) start to recover in 2026. The risk you note about valuations being high is fair - many analog semis trade at elevated multiples despite the cyclical downturn, so margin for error is slim. Appreciate the balanced perspective on opportunities and risks in the semiconductor space.
Good analysis on the semiconductor secttor momentum and AI infrastructure dynamics. Your point about "ancillary tech areas (data centres, servers, memory)" benefiting from AI hardware demand is crucial for understanding the broader semiconductor landscape beyond just the headline GPU makers. Companies like Analog Devices (ADI) are perfectly positioned here - they provide the essential analog and mixed-signal components (power management ICs, signal processing, precision converters) that enable data center infrastructure and AI systems to function. While Nvidia gets the AI spotlight, ADI's high-performance analog products are quietly enabling the power delivery, thermal management, and signal integrity that AI accelerators require. Your observation about trade/export risk is particularly relevant for ADI since they have significant exposure to industrial and automotive markets in China - any escalation in chip sanctions could impact their revenue mix. The easing inflation backdrop you mention could be a tailwind for ADI's valuation, as their long-cycle industrial and automotive design wins (which have been in inventory correction) start to recover in 2026. The risk you note about valuations being high is fair - many analog semis trade at elevated multiples despite the cyclical downturn, so margin for error is slim. Appreciate the balanced perspective on opportunities and risks in the semiconductor space.