Rene Haas announced he's increasingly confident about meeting $2 billion in customer demand. Not confident. Not very confident. Increasingly confident. This is what passes for executive communication in 2024.
The chip designer needs to secure supply. Supply of chips. For chip designers who design chips but apparently don't have enough chips. The business model writes itself.
Haas previously existed in some lower state of confidence. Maybe he was moderately confident. Perhaps cautiously optimistic. He has now graduated to increasingly confident, which in CEO-speak means he still has no f*cking idea but the earnings call is next week.
Two billion dollars in customer demand sits on the table. Customers want the AI chips. They have money. Arm designs the chips. The only missing piece is supply, which is the entire thing. It's like being increasingly confident you can make dinner once you find food.
Retail traders will read this headline and think it's bullish. A CEO said he's more confident than he was before about doing the thing his company is supposed to do. They'll buy calls. They'll tell their cousin about it. Their cousin will buy calls. Everyone will lose money in ways that have nothing to do with Rene Haas or his confidence level.
The word "loftier" appears in this headline. As if $2 billion is some aspirational moonshot for a company with a market cap that probably makes that look like couch change. But sure, loftier. Very lofty. The summit of Mount Slightly-Better-Than-Before.
Haas will give another interview in three months where he's "very confident" or "highly confident" or maybe even "supremely confident" and we'll do this again.
Photo by Enchanted Tools on Unsplash
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