AI and Energy Infrastructure, Explained Plainly, The Physical Layer

The Physical Layer

AI and Energy Infrastructure, Explained Plainly

A journal on the physical constraints behind the AI buildout: power, grid connection, data centres, cooling and the supply chains that gate them. Written to be understood by anyone.

Thematic (Sector/Industry)

<ul><li>Nvidia's B200, one of the chips behind today's AI boom, is designed in California but built by dozens of companies in at least five countries.</li><li>Some of those suppliers could be swapped out in months.</li><li>Others would take years, because a replacement needs new factories or years of testing before anyone trusts it.</li></ul>

Nvidia's B200, one of the chips behind today's AI boom, is designed in California but built by dozens of companies in at least five countries.Some of those suppliers could be swapped out in months.Others would take years, because a replacement needs new factories or years of testing before anyone trusts it.

Nobody makes an Nvidia B200 alone, and the weak links are measured in years

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Applied Materials reported a third quarter of fiscal 2026 marked by record revenue of $9.1 billion, reflecting a 15% sequential and 25% year-over-year increase.</li><li>The company achieved its highest quarter-on-quarter revenue growth in history, driven primarily by strong demand for semiconductor equipment linked to the acceleration of artificial intelligence (AI) infrastructure build-out.</li><li>Applied Materials notably experienced growth in its Semiconductor Systems segment by 18% sequentially and 27% year-over-year, with particular strength in leading-edge foundry-logic, dynamic random-access memory (DRAM), and advanced packaging.</li></ul>

Applied Materials reported a third quarter of fiscal 2026 marked by record revenue of $9.1 billion, reflecting a 15% sequential and 25% year-over-year increase.The company achieved its highest quarter-on-quarter revenue growth in history, driven primarily by strong demand for semiconductor equipment linked to the acceleration of artificial intelligence (AI) infrastructure build-out.Applied Materials notably experienced growth in its Semiconductor Systems segment by 18% sequentially and 27% year-over-year, with particular strength in leading-edge foundry-logic, dynamic random-access memory (DRAM), and advanced packaging.

Applied Materials Builds a Semiconductor Powerhouse — Logic, DRAM and Packaging All Accelerate!

CEO / Founder, Crea8

Kim-Hwa Lim

CEO / Founder

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Crea8

Crea8 blends AI-driven precision, big data scalability, and rigorous quantitative frameworks with seasoned human insight. By extracting actionable intelligence from vast global datasets, we eliminate emotional bias and deliver optimal risk-adjusted returns. Our hybrid approach uncovers hidden market efficiencies and ensures your capital is dynamically positioned across markets.

Cross Asset Strategy

<ul><li>Dividends are a key component of overall returns. The strategy seeks to invest in high dividend and Shariah compliant stocks globally.</li><li>By adopting a portfolio of stocks instead of individual stocks, the strategy is diversified across countries and industries; and optimised with respect to their expected risks and returns.</li><li>Previous portfolio returned -2% vs. MSCI World (-1.3%) – underperformed the benchmark by -0.7%.</li></ul>

Dividends are a key component of overall returns. The strategy seeks to invest in high dividend and Shariah compliant stocks globally.By adopting a portfolio of stocks instead of individual stocks, the strategy is diversified across countries and industries; and optimised with respect to their expected risks and returns.Previous portfolio returned -2% vs. MSCI World (-1.3%) – underperformed the benchmark by -0.7%.

Global Income (Shariah) Portfolio (14-Sep-2026)

<ul><li>The strategy seeks to invest in global companies with sustainable competitive advantages and are Shariah compliant.</li><li>By adopting a portfolio of stocks instead of individual stocks, the strategy is diversified across countries and industries; and optimised with respect to their expected risks and returns.</li><li>Previous portfolio returned -0.2% vs. MSCI World (-1.3%) – outperformed the benchmark by 1.2%.</li></ul>

The strategy seeks to invest in global companies with sustainable competitive advantages and are Shariah compliant.By adopting a portfolio of stocks instead of individual stocks, the strategy is diversified across countries and industries; and optimised with respect to their expected risks and returns.Previous portfolio returned -0.2% vs. MSCI World (-1.3%) – outperformed the benchmark by 1.2%.

Global Competitive Barrier (Shariah) Portfolio (14-Sep-2026)

Asia and Global Semiconductor and Tech Research

Andrew Lu

<ul>
<li>During MOI correction period, global semi equipment and manufacturing vendors might under-perform semi product companies on sales/earnings and share price performance in next 6 months given utilization remains below 80%.</li>
<li>A healthy MOI correction in PC/smartphone semi might result in global logic MOI to fall to 3.7-3.8 months in 3Q23, down 15% q/q and 8% y/y, heading to historical low. </li>
<li>China fabless reduced MOI to 6.4 months in 3Q23, down 16% q/q and 26% y/y. Although 2x over 3.5 months low, we expect 4-5 months in future due to restrictions.</li>
</ul>


During MOI correction period, global semi equipment and manufacturing vendors might under-perform semi product companies on sales/earnings and share price performance in next 6 months given utilization remains below 80%.
A healthy MOI correction in PC/smartphone semi might result in global logic MOI to fall to 3.7-3.8 months in 3Q23, down 15% q/q and 8% y/y, heading to historical low. 
China fabless reduced MOI to 6.4 months in 3Q23, down 16% q/q and 26% y/y. Although 2x over 3.5 months low, we expect 4-5 months in future due to restrictions.


More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction

United States

Applied Materials, Inc. develops, manufactures, markets, and services semiconductor wafer fabrication equipment and related spare parts for the worldwide semiconductor industry.  The Company's customers include semiconductor wafer and integrated circuit manufacturers, flat panel liquid crystal displays, solar photovoltaic cells and modules and other electronic devices manufacturers.

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Applied Materials (AMAT US)

Nobody makes an Nvidia B200 alone, and the weak links are measured in years

Nvidia's B200, one of the chips behind today's AI boom, is designed in California but built by dozens of companies in at least five countries.

The Physical Layer

Applied Materials Builds a Semiconductor Powerhouse — Logic, DRAM and Packaging All Accelerate!

Applied Materials reported a third quarter of fiscal 2026 marked by record revenue of $9.1 billion, reflecting a 15% sequential and 25%...

Baptista Research

Global Income (Shariah) Portfolio (14-Sep-2026)

Dividends are a key component of overall returns. The strategy seeks to invest in high dividend and Shariah compliant stocks globally. By adopting...

Crea8

Global Competitive Barrier (Shariah) Portfolio (14-Sep-2026)

The strategy seeks to invest in global companies with sustainable competitive advantages and are Shariah compliant. By adopting a portfolio of...

Crea8

More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction

More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction. During the period, global semi equipment and manufacturing...

Andrew Lu

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