Solid analysis on the compounding effects here. The insight about network effects at the infrastructure level is what most miss because people still think about chip manufacturing as a commodity market. Once you realize the whole stack from manufacturing to distribution is getting locked in together the competitive moat becomes almost impossible to cross. We saw something similar with Intel in the 90s but this is happening at a much more integrated level acrossentire ecosystems.
Solid analysis on the compounding effects here. The insight about network effects at the infrastructure level is what most miss because people still think about chip manufacturing as a commodity market. Once you realize the whole stack from manufacturing to distribution is getting locked in together the competitive moat becomes almost impossible to cross. We saw something similar with Intel in the 90s but this is happening at a much more integrated level acrossentire ecosystems.
Exactly, it’s on a much more intense scale than back then.