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Oct 21, 2022Liked by Antonio Linares

Cool post Antonio! Simple and valuable way to think about the world and investments.

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Thanks a lot, Erik

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Antonio, I know that you saw asymmetric investing opportunity in $AMD especially when it was significantly undervalued years ago and was rewarded accordingly. One may argue valuation has caught up to $AMD since then, although recently whole semiconductor space has taken a beating. Given current climate with semiconductor business (China geopolitical tensions/ US Chip Act/ cyclical nature/ competitions such as $NVDA, $INTL), do you still feel that $AMD specifically is still the company with asymmetric investment upside? As opposed to $NVDA, $TSM, $ASML, etc.

Also, I know that $DNA was significantly overvalued when you reviewed them last year, but since then their valuation has significantly decreased, and they are still in a promising field with great financials ($2 billion cash run way, which is more comforting in current economic crisis), although not vertically integrated like $AMRS. Do you see any asymmetric upside in $DNA now?

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Oct 22, 2022·edited Oct 22, 2022Author

Hey investorMD! Yes, I do feel like $AMD has a long way to go over the next 5-10 years. I will be posting my deep dive on the company next week.

About $DNA, my issue with the company was as you say valuation on one end and on the other, the fact that they can´t actually make things with their technology. I think the market brushes over the difficulty of manufacturing in syn bio. I have a second look at $DNA in my pipeline, so stay tuned.

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Thanks Antonio. I agree that the vertical integration can be attractive - in the case of $TSLA and $AMRS. That said, in the case of semiconductors, $AMD and $NVDA only specialize in designing but not manufacturing their products, yet they are profitable, so it can seem a bit inconsistent when we look for the vertical integration. Will be looking forward to your DD's!

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The difference between semis and syn bio is that in the latter, the methods of production are alive - so the design is an intrinsic part of the manufacturing and viceversa. Thanks, excited to share soon!

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