Buy Semiconductor CapEx Instead of Memory You Monkey (DD on $VECO)
Dear regards,
I am writing to you to inform you on the next best degen ticker for the most restarted regards. No financial advice here buddy, invest at your own risk. I gave you [BITF](https://www.reddit.com/r/wallstreetbets/comments/1nesqr3/dd_on_bitf_a_speculative_but_undervalued_company/) at $2.2 last year, KEEL (the new ticker) peaked at $7.37 (+235%).
Now, I present to you Veeco Instruments (VECO) at a measly $3.5b market cap.
First, some background on the market dimension. According to SemiAnalysis, Samsung is expected to add 175k in additional DRAM wafer capacity, Micron is expected to add 235k, and SK Hynix with 210k in the coming 3 years. China is expanding rapidly into memory – CXMT will have 235k in additional capacity. Elon’s new fab is expected to cost $119b – Elon is a fantasy man living in dream land but this has been verified to be real by reports of channel checks.
So how do you capitalize on this without taking on the risk of memory prices collapsing? By investing in companies that make equipment fueling this buildout. And this is where VECO comes in. VECO is the leader of laser spike annealing (LSA) equipment used in the most cutting edge fabs.
* LSA improves the density, bandwidth, yield, and power per bit for memory -> incredibly necessary for newer generations of GPU as there is no signs of the needs of memory decreasing
* LSA solves the challenge of increasing the number of DRAM stacks for HBM, directly enabling next generation memory
* Memory CapEx, as previously established, is only increasing
* They are the "Tool of Record" for laser annealing, aka rated as the standard for this type of tech by 2+ leading companies
* Axcelis merger pending approval from only China (approved in other jurisdictions)
* Exposure to China revenue -> VECO can capitalize on CXMT and YMTC buildouts
At a their current FWD P/E, they are incredibly undervalued. Using AMAT, LRCX, KLAC, ONTO, FORM, ACMR, and ACLS as comps, I get to a sexy $145 blended valuation.
Can VECO 10x? Yes, it can. Can VECO go to bag-holder land? Yes, it can. Invest at your own risk.
Have fun
Regards,
Checazzo
https://preview.redd.it/sgzqs765c9ch1.png?width=538&format=png&auto=webp&s=ebbac656147cb7ddbcdd371d2fd79ab4d593bb12