Silicon Roads Saga: The Arrakis Portfolio Unveiled
"He who controls the spice controls the universe." The control of semiconductors, the contemporary elixir, dictates the rise and fall of nations.The Silk Roads have metamorphosed into Silicon Roads.
In the tumultuous dance of geopolitics, imagine a clandestine portfolio, a hidden tapestry of power woven with threads of silicon NVDA, TSM, LRCX, ASML, SMCI This cryptic ensemble, dubbed the Arrakis Portfolio, possesses the elusive key to global influence – a mystique reminiscent of the ancient Silk Roads that once interconnected civilizations.
In the shadows of history, the Silk Roads endured, serving as the world's windscreen wipers, clearing the path for revelations and forging connections through trade, ideas, and cultures. However, as the 20th century unfurled, the narrative shifted from the silk-clad caravans to the control of oil routes, steering geopolitical powers and shaping the outcomes of global conflicts.
Fast forward to the present, where the script has evolved once again. The stage is now adorned with the "7 Magnificent" – Microsoft, Meta, Google, Tesla, Apple, Amazon, and Nvidia. Their dominion is no longer over spices and oil but over a far more potent commodity – semiconductors, the modern-day spice.
Blue the 7 Magnificent Vs Red the Arrakis Portfolio.
Enter the Arrakis portfolio, an elusive ensemble of critical semiconductor companies poised to seize control of the silicon roads. In the esoteric world of geopolitics, this clandestine collection holds the secrets to mastering the universe, echoing the prophetic words: "He who controls the spice controls the universe."
Ben Hunt, elucidating through the Epsilon Theory Newsletter, sheds light on Taiwan as the epicenter – the Arrakis of our time. Taiwan's TSMC, reigning as the chief supplier of semiconductors, holds the coveted spice, becoming a linchpin in the delicate equilibrium of global power. Recent events, such as the bans on Huawei and restrictions on ASML's technology exports to China, underscore the geopolitical chess game unfolding around semiconductor dominance.
As we decipher the codes of power, we witness a profound shift. Governments worldwide craft policies and initiatives, such as the U.S. CHIPS and Science Act, seeking to secure their semiconductor manufacturing capacities, recognizing that control over this modern alchemy is paramount for national security and technological sovereignty.
The Silk Roads have metamorphosed into Silicon Roads, with the Arrakis portfolio assuming a central role in the unfolding drama. The control of semiconductors, the contemporary elixir, dictates the rise and fall of nations, casting a veil of mystery over the geopolitical stage where the players vie for supremacy on the silicon chessboard.
Thanks for reading,
Guillermo Valencia A .
Co-founder of Macrowise.
Miami, February 4th, 2024.
Disclaimer:
This commentary is being provided to you as general information only and should not be taken as investment advice. The opinions expressed in these materials represent the personal views of the author(s). It is not investment research or a research recommendation, as it does not constitute substantive research or analysis. Any action that you take as a result of information contained in this document is ultimately your responsibility. Consult your investment advisor before making any investment decisions. It must be noted, that no one can accurately predict the future of the market with certainty or guarantee future investment performance. Past performance is not a guarantee of future results.