Microsoft

Meritz Securities: CSPs flooding requests to secure HBM supply for 2028.

$Alphabet(GOOGL.US) $Microsoft(MSFT.US) $Meta Platforms(META.US) $Amazon(AMZN.US) $DRAM $Micron Tech(MU.US) $EWY

A TON OF THINGS HAPPENED IN THE STOCK MARKET TODAY.

Here's a full recap:

1. Moderna $Moderna(MRNA.US) and Merck $Merck(MRK.US) said their personalized mRNA cancer vaccine, intismeran, combined with Keytruda slowed melanoma recurrence and spread in a late-stage trial. The Phase 3 study was stopped at its first interim analysis after positive results, though detailed efficacy data have not yet been released. If the benefit holds, this would mark the first randomized Phase 3 validation of a personalized neoantigen cancer vaccine and could significantly expand the use case for mRNA technology beyond traditional vaccines. $Moderna(MRNA.US) surged 175% today, became the 2nd-best performing stock in the S&P 500 this year, and triggered an estimated $4.8B loss for short sellers. It was also the largest one-day percentage gain ever for an S&P 500 stock.

2. Crypto rallied sharply today as $Grayscale Bitcoin Mini Trust ETF(BTC.US) Bitcoin jumped roughly 8%, briefly touching about $70,000 for its biggest move since March, before settling near $68,500–$69,500. The move liquidated an estimated $1.4B–$1.7B of short positions and was driven by a mix of lower-yield pressure from Treasury buybacks, regulatory optimism, and today’s White House crypto meeting. $ETH Ethereum, $Emeren(SOL.US) Solana, and other major alts also traded higher, while crypto-linked stocks like Coinbase and Circle rallied. President Trump urged Congress to pass a “fair version” of the Clarity Act, said the U.S. should remain the leader in Bitcoin, crypto, prediction markets, and AI, and said he would listen to recommendations on whether the U.S. should accumulate more Bitcoin or crypto. Trump also said the CFTC is working to bring Hyperliquid into the U.S. in a fully compliant way, helping send HYPE higher. Overall, the tone was strongly pro-crypto, though the Clarity Act still faces political hurdles in the Senate.

3. Nebius $Nebius(NBIS.US) announced a proposed private offering of $4.5B of convertible senior notes. The offering includes $2.75B of notes due 2030 and $1.75B of notes due 2034, with an option for an additional $675M. Key terms, including interest rates and conversion prices, will be determined at pricing. Nebius was down 9.87% today.

4. U.S. national debt just crossed $40T, with the latest $10T added in roughly 4.5 years. The debt now equals about $116,481 per citizen and $360,794 per taxpayer, while the debt-to-GDP ratio sits around 122.7%. Federal spending is running at roughly $7.26T, compared to federal tax revenue of about $5.59T, leaving a federal budget deficit near $1.68T. Net interest on the debt is now running above $1.1T, making it one of the largest line items in the federal budget.

5. The U.S. Treasury announced it will double the size of long-term government debt buybacks after the rapid surge in Treasury yields. Repurchases of $2B will now increase to at least $4B, with the Treasury saying the move is meant to provide “liquidity support” for bonds maturing in 10 to 30 years as total U.S. debt nears $40T. The situation is like someone with a 30-year mortgage at 3.25% refinancing into a 1-year adjustable-rate loan at 5.75% because the market won’t absorb the longer-term debt cleanly. In other words, longer-duration, lower-cost debt is being replaced with shorter-term, higher-cost financing. Now apply that dynamic across trillions of dollars in U.S. government debt. That is the pressure Treasury is trying to manage as long-term yields keep rising.

6. Starlink is reapplying for India approval for its Gen 2 network, seeking authorization for nearly 30,000 LEO satellites operating at 340–615 km, including direct-to-device connectivity. India previously approved only Starlink’s 4,408-satellite Gen 1 network after rejecting the earlier Gen 2 application. The move comes as India is still finalizing D2D rules and satellite spectrum pricing, with Jio, Amazon Leo, and OneWeb also competing for the market, according to ET.

7. Goldman Sachs is preparing a roughly $1.15B junk bond to finance a Virginia data center leased to CoreWeave $Coreweave(CRWV.US). The deal is expected in September, with Goldman moving forward even as investors demand higher yields for AI infrastructure debt tied to CoreWeave. The financing comes after a separate $3.5B CoreWeave-backed deal recently priced at a 10% yield, underscoring how capital-intensive AI data center buildouts have become and how much credit markets are now focused on AI infrastructure risk.

8. The top 10 most active options today by contracts traded were $Tesla(TSLA.US) with 2.9M contracts, $NVIDIA(NVDA.US) with 2.6M contracts, $Apple(AAPL.US) with 1.9M contracts, $Amazon(AMZN.US) with 1.0M contracts, $Intel(INTC.US) with 932K contracts, $Micron Tech(MU.US) with 886K contracts, $Strategy(MSTR.US) with 789K contracts, $Microsoft(MSFT.US) with 745K contracts, $SpaceX(SPCX.US) with 694K contracts, and $Meta Platforms(META.US) with 658K contracts.

9. Nvidia $NVIDIA(NVDA.US) has reportedly discussed investing in AI data supplier Mercor as part of a funding round that would value the startup at $20B, according to The Information. Mercor hires specialists across science, law, finance, and other fields to train and evaluate AI models, producing higher-quality data for complex tasks. Nvidia paid Mercor tens of millions of dollars last quarter and used its data to develop its two latest Nemotron models, with several Mercor employees now reportedly focused almost entirely on Nvidia-related work. The relationship is expanding as Nvidia invests more heavily in Nemotron, its open AI model family. Mercor has also worked with OpenAI, Google, and Anthropic, while annualized gross revenue reportedly reached $2B in June, double its level from the start of the year.

10. Webull $Webull(BULL.US) reported Q2’26 revenue of $198.8M, beating estimates of $181M, up 51% YoY and 24% sequentially. Adjusted EPS came in at $0.12 versus $0.03 expected, up 140% YoY, while net income reached $24.4M and adjusted operating profit was $62.6M, representing a 31.5% margin. Trading-related revenue rose 66% YoY to $147.7M. Customer assets grew 79% YoY to $28.5B, registered users reached 28.2M, funded accounts hit 5.13M, equity notional volume rose 73% YoY to $279B, and options contract volume increased 68% YoY to 213M. Webull also launched Vega Analyst and announced the acquisition of Pi Securities in Thailand.

11. President Trump is reportedly set to reduce tariffs on automobiles imported from Canada from 25% to 15% as part of a broader trade deal, according to Bloomberg. The current tariff applies to the non-U.S. content of vehicles produced in Canada, and that same content provision is expected to apply under the new 15% rate. U.S. and Canadian negotiators have also discussed whether to expand the exemption to include additional content, though no final decision has been made.

12. U.S. margin debt fell by a record $85B in July to $1.42T, marking the largest monthly decline ever and the first monthly drop since March. For context, the prior record decline was $80B in January 2022, right as the bear market began. The pullback follows a massive $198B surge in margin debt across May and June, the largest two-month increase on record. Even after July’s historic decline, margin debt is still up $518B, or 58%, since the start of 2025.

WALL STREET IS THE GREATEST SHOW ON EARTH.

Source: amit

Three of Taiwan’s top chip design houses have invested in new data centers for more R&D compute, media report:

-MediaTek (smartphone chips, custom ASICs, more): Opened the first of three phases at its new Tongluo R&D data center in May, aimed at R&D across AI and high performance computing, advanced node chip designs and advanced packaging.

-Global Unichip (GUC, custom ASICs, more): Its Zhunan data center began trials in the 2nd quarter and is for chip design work on advanced 3nm, 2nm and below nodes, custom ASICs and advanced packaging design.

-Novatek (custom ASICs, more): Broke ground July 28 on an NT$2.9B R&D data center for own product designs and custom ASIC design service. $NVIDIA(NVDA.US) $Alphabet(GOOGL.US) $Microsoft(MSFT.US) $Meta Platforms(META.US) #semiconductors

Source: Dan Nystedt

WSJ: Nine top tech companies had some $3 trillion of off-balance-sheet commitments mostly related to AI.

A lot of spending going into this buildout...

$Meta Platforms(META.US) $Amazon(AMZN.US) $Microsoft(MSFT.US) $Alphabet(GOOGL.US)

Just some TLDRs of stuff I found interesting:

- $Sandisk(SNDK.US) 80% adjusted gross margins projections through 2030, ~75% operating margins and ~50% adjusted FCF margins from investor day.

LTAs already 2/3rd of 2028 output. Minimum contracted revenue reaches $93B (MC is currently ~$239B)... Hard to be a cyclical stock when your revenue/targets are expected to continue 4Y later into 2030.

- $Coreweave(CRWV.US) signs contracts for 6Y old $NVIDIA(NVDA.US) A100 GPUs through 2029.

For Neoclouds like Nebius/Iren, this is positive, since it's a counterargument for eg. Burry depreciation short thesis

- conventional DRAM gross margins eg. Micron is estimated to reach an unprecedented 95% by 2027, surpassing HBM GMs per UBS

read through for legacy/standard dram players like Nanya/Winbond should go brrrr if projections are correct.

- Anthropic reportedly achieved 14x+ YoY growth and roughly 2.4x sequential revenue growth q2 to >$11.5B,. estimating growth to $190–200B in 2028r evenue numbers.

Your frontier labs keep growing at stupidly fast paces, it would be worrisome if they didnt.

- $NVIDIA(NVDA.US) reportedly in talks to invest $3B in SB Energy (Softbank subsidiary), creates a >$500B compute financing push with Apollo, BlackRock, Blackstone, Brookfield, Goldman, and others. $NVIDIA(NVDA.US) Feynman reportedly moves to TSMC A16 + SoIC + custom HBM + CPO in H2 2028

Just more nvidia news every day

- $Microsoft(MSFT.US) Maia 300 discussed $Taiwan Semiconductor(TSM.US) capacity for >300k units in 2027, with expansion to 1m+. Unveils as soon as September.

Likely $Marvell Tech(MRVL.US) should be more happy from this news. For what's happening right now:

- maybe GUC for Microsoft current ASIC ramp.

- For the Amazon party, stuff like Alchip (I do own shares), likely is ramping now with $Amazon(AMZN.US) ASIC program H2 2026...

So might be a good idea to look at hyperscaler ASIC ramp timelines + their beneficiaries.

- $Taiwan Semiconductor(TSM.US) VP of Advanced Packaging stated "the industry is likely to face not only memory shortages but also tight ABF substrate supply over the next few years"...

Emphasis on few years for memory + ABF substrates for bottlenecks.

Even upstream abf substrate equipment providers are happy, eg. Eternal Precision which uses vacuum lamination equipment stated orders surged, their plants have been running at full capacity, and 20%+ price hikes.

- $Applied Materials(AMAT.US) expects advanced packaging revenue to grow >70% in 2026, versus prior >50%, and said customer discussions now extend all the way to 2030

(not too familiar with this company, but found their growth rate from 2025 Q4 $6.8B ->$7.01B -> 7.91B -> $9.12B -> $10.25B Q4 2026 projections pretty interesting)

- Google said at OCP APAC said conventional 48V is running out of headroom. $NVIDIA(NVDA.US) detailed an 800VDC MGX-compatible rack H2 2026 (timeline, Delta / Lite-On beneficaries)

- Aside from $Sandisk(SNDK.US), Nanya LTAs cover 50% of capacity. CXMT signed multi-year DRAM agreements last month, so entire memory industry seems to be following same playbook as ur big 3.

- Probe cards remain a bottleneck, MPI(6223) said their probe card capacity remains fully utilized because demand exceeds supply.

Already covered the CW laser bottleneck with $Applied Optoelectronics(AAOI.US), $SIVE, and $Lumentum(LITE.US) earlier this week, but that's another fun one.

- some MLCC/component lead times have hit 36 weeks per Nichidenbo.

Your Samsung Electro-Mechanics, Taiyo Yuden, Murata, players should be very happy to hear this.

TLDR: AI supply chains go brrr.

Impressive...but at the same time hard to believe that by 2029, the market share for GPUs will be ~21% compared to ~79% for ASICs. Also implying a 17.5% market share for Nvidia lol.

I don't buy that a single bit.

$NVIDIA(NVDA.US) $AMD(AMD.US) $Intel(INTC.US) $Alphabet(GOOGL.US) $Amazon(AMZN.US) $Microsoft(MSFT.US)

Terry Smith - Fundsmith Portfolio Updates:

New Positions (Buy): 13

$Uber Tech(UBER.US) $Mastercard(MA.US) $Taiwan Semiconductor(TSM.US) $Netflix(NFLX.US) $GE Vernova(GEV.US) $AppLovin(APP.US) $TJX(TJX.US) $Nextpower(NXT.US) $Visa(V.US)eeva Systems -CL(VEEV.US) $Yum! Brands(YUM.US) $Fair Isaac(FICO.US) $InterDigital Comm(IDCC.US) $OReilly Automotive(ORLY.US)

Added to Existing Positions: 4

$Napco Security(NSSC.US) $Mastercard(MA.US)NH $Badger Meter(BMI.US) $Clorox(CLX.US)

Reduced Positions: 21

$Church & Dwight(CHD.US) $Procter & Gamble(PG.US) $Stryker(SYK.US) $Doximity(DOCS.US) $Nutanix(NTNX.US) $Medpace(MEDP.US) $MSCI(MSCI.US) $Meta Platforms(META.US) $Microsoft(MSFT.US) $Mastercard(MA.US)R $Waters(WAT.US) $IDEXX Labs(IDXX.US) $Texas Instruments(TXN.US) $Automatic Data Process(ADP.US) $Visa(V.US) $Alphabet(GOOGL.US) $Fortinet(FTNT.US) $Phillip Morris(PM.US) $Visa(V.US)RSN $Visa(V.US)RT $Paycom Software(PAYC.US)

Fully Exited / Sold 100%: 6

$Mettler Toledo(MTD.US) $Zoetis(ZTS.US) $Otis Worldwide - WI(OTIS.US) $Catalyst Pharma(CPRX.US)-OLD $Qualys(QLYS.US) $Home Depot(HD.US)

A TON OF THINGS HAPPENED IN THE STOCK MARKET TODAY.

Here's a full recap:

1. SanDisk $Sandisk(SNDK.US) laid out its investor day targets, guiding for mid-to-high teens revenue growth, roughly 80% non-GAAP gross margins, and about 50% adjusted free cash flow margins. The company also expects to return 100% of excess cash to shareholders. SanDisk highlighted its HBF technology as a potential major efficiency unlock for AI inference, saying internal testing showed 1 HBF GPU could run the same model that required 8 HBM GPUs, implying 8x CapEx efficiency, while 4 HBF GPUs matched the token output of 8 HBM GPUs, implying 2x GPU efficiency. $Sandisk(SNDK.US) was up 14%.

2. U.S. PPI came in slightly cooler on the headline number, rising 4.7% YoY versus 4.9% expected and 0.0% MoM versus 0.2% expected. Core PPI was mixed, rising 4.2% YoY versus 4.1% expected, but only 0.2% MoM versus 0.3% expected. Initial jobless claims came in at 209K versus 202K expected, while continued claims were 1.777M versus 1.794M expected.

3. Norway’s $2.3T sovereign wealth fund, the world’s largest, generated a record $184.3B profit in H1 2026. The fund returned 9.4% over the period, with its 72.1% equity allocation up 13.0%. In Q2 alone, the portfolio gained 11.5%, its strongest quarter since Q2 2020, led by equities returning 16.0% as AI-related names drove performance. Nvidia $NVIDIA(NVDA.US) remained the fund’s largest holding at the end of H1, followed by Microsoft $Microsoft(MSFT.US) and Apple $Apple(AAPL.US). Norway’s fund now owns roughly 1.5% of all publicly listed companies globally and has become one of the world’s largest institutional investors in AI-related stocks.

4. OpenAI’s annualized revenue has reportedly topped $40B, roughly doubling its run rate from the end of 2025, according to Bloomberg. July run-rate revenue rose more than 20% MoM, driven by strength in Codex, subscriptions, and early ad sales, highlighting how quickly OpenAI’s monetization is scaling across both consumer and business lines.

5. Reddit $Reddit(RDDT.US) is set to join the S&P 500 before the open on August 18, replacing AvalonBay Communities $AvalonBay Communities(AVB.US). AvalonBay is being acquired by Equity Residential $Equity Residential(EQR.US), with the combined company expected to remain in the index under the new name Vivmark Residential $Vivmark Residential(VMRK.US). S&P Dow Jones Indices also announced that Sun Communities $Sun Communities(SUI.US) will join the S&P MidCap 400 before the open on August 20, replacing Webster Financial $Webster Financial-Waterbury(WBS.US), which is being acquired by Banco Santander $Banco Santander SA-Spon(SAN.US).

6. The top 10 most active options today by contracts traded were $NVIDIA(NVDA.US) with 2.4M contracts, $Tesla(TSLA.US) with 2.0M contracts, $SpaceX(SPCX.US) with 1.2M contracts, $Micron Tech(MU.US) with 1.0M contracts, $Apple(AAPL.US) with 881K contracts, $Intel(INTC.US) with 863K contracts, $Super Micro Computer(SMCI.US) with 843K contracts, $Netflix(NFLX.US) with 681K contracts, $Palantir Tech(PLTR.US) with 625K contracts, and $Amazon(AMZN.US) with 600K contracts.

7. Ondas $Ondas(ONDS.US) reported Q2’26 revenue of $83.8M, beating estimates of $68M and up 67% QoQ. Adjusted gross margin came in at 50.4%, while adjusted EBITDA was -$50.6M versus -$32M expected. Backlog reached $613M, or $757M pro forma including DZYNE and Cyberhawk, with $175M of new orders in Q2 and another $105M already in Q3 to date. Ondas raised FY26 revenue guidance to $525M–$550M versus $509M expected and guided Q3 revenue to $140M–$155M. The company also pulled forward its profitability timeline, now targeting platform-level adjusted EBITDA profitability by Q4 2026 and company-wide profitability by Q4 2027. Key wins included a $52.9M lethal unmanned strike order, more than $240M of captured orders under a $982M Army IDIQ program, and NASA raising its Stratollite IDIQ ceiling from $45M to $395M.

8. Nu Holdings $NU Holdings(NU.US) reported Q2’26 revenue of $5.51B, beating estimates of $5.23B, up 50.3% YoY. Diluted EPS came in at $0.216 versus $0.20 expected, while net income rose 66.8% YoY to $1.06B. Gross profit increased 51.6% YoY to $2.35B, total assets grew 31.9% YoY to $82.75B, and total interest income and gains reached $4.76B, up 52.1% YoY. On the balance sheet, deposits rose 23.7% YoY to $45.33B, credit card receivables increased 42.1% YoY to $21.49B, loans to customers grew 43.8% YoY to $11.32B, and total equity reached $13.25B.

9. Elon Musk disclosed ownership of 6,418,547,515 SpaceX $SpaceX(SPCX.US) shares in a new SEC filing, representing a 48.4% stake in the company. Based on the filing, Musk’s stake is valued at roughly $908.35B.

10. Nebius $Nebius(NBIS.US) is facing permitting-related delays at its Vineland data center after Hunterbrook reported a second stop-construction order at the site. The first order, issued on August 6, paused LNG tank work, while the second, issued on August 10, paused Bloom Energy $Bloom Energy(BE.US) fuel-cell work after the city said required approvals and permits had not been secured. Nebius said on August 12 that it does not expect a material impact to the project timeline and confirmed that Vineland capacity remains included in its 2026 connected power targets. The main building structure was completed earlier this summer, engineering fit-out is underway, and fuel-cell installation is expected to move quickly once the permitting issues are resolved.

11. OpenAI is replacing chief revenue officer Denise Dresser less than a year after she joined the company. Dresser is leaving to pursue other opportunities, while Dali Rajic, president and COO of Alphabet-owned Wiz, will take over the role. The move marks another major leadership change as OpenAI scales revenue across enterprise, subscriptions, APIs, and new monetization channels.

12. Hedge funds bought $6.8B of U.S. equities last week, the largest weekly purchase in 18 years. As a share of S&P 500 market cap, it ranked as the 9th-largest weekly buy since 2008. This follows $4.8B of purchases the week before, bringing total hedge fund buying to $11.6B over the last 2 weeks, the largest two-week purchase on record. The 4-week average of hedge fund purchases has now risen to $1.8B. Meanwhile, institutional investors sold $1.1B, their second straight weekly sale, while retail investors sold $4.1B, pushing their 4-week average selling to $500M.

WALL STREET IS THE GREATEST SHOW ON EARTH.

Source: amit

Quanta, the AI server giant, said order visibility extends into 2028, and the CFO is “very excited” about the next 2-years, at its 2nd quarter investors’ conference, media report:

-Capex raised to NT$40 billion from NT$30 billion

-AI server capacity will double by end-2026 vs last year.

-2028 AI server capacity to double again vs 2026.

-AI servers accounted for 75-80% of total server revenue

-In the 3rd quarter, AI server revenue will grow by a double-digit percent vs Q2

-For full year 2026, AI server revenue will double vs 2025

-Top 5 CSPs/Hyperscalers are all Quanta clients

-It has also won AI server and ASIC server orders from Neo Clouds

-Quanta made a US$973 million cash injection into US operations for further expansion

-Full year laptop shipments are expected to drop by a double digit % $NVIDIA(NVDA.US) $Amazon(AMZN.US) $Alphabet(GOOGL.US) $Microsoft(MSFT.US) $Meta Platforms(META.US) $Oracle(ORCL.US) #AIservers #laptops

Source: Dan Nystedt

📊 𝐈𝐍𝐕𝐄𝐒𝐓𝐎𝐑 𝐍𝐎𝐓𝐄: Steve Eisman Warns AI Boom Hinges Heavily on OpenAI and Anthropic - $NVIDIA(NVDA.US) $Amazon(AMZN.US) $Microsoft(MSFT.US) $Oracle(ORCL.US) $Alphabet(GOOGL.US)

👉 𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀:

➤ 𝗦𝘁𝗲𝘃𝗲 𝗘𝗶𝘀𝗺𝗮𝗻 says AI boom largely depends on 𝗢𝗽𝗲𝗻𝗔𝗜 and 𝗔𝗻𝘁𝗵𝗿𝗼𝗽𝗶𝗰.

➤ Startups represent roughly 𝟳𝟬% of AI-related revenue at major cloud companies.

➤ They account for about 𝟮𝟱%–𝟯𝟱% of those companies' cloud revenue.

➤ Exposure includes 𝗠𝗶𝗰𝗿𝗼𝘀𝗼𝗳𝘁, 𝗔𝗺𝗮𝘇𝗼𝗻, 𝗔𝗹𝗽𝗵𝗮𝗯𝗲𝘁's Google, and 𝗢𝗿𝗮𝗰𝗹𝗲.

➤ Eisman identifies cheaper 𝗖𝗵𝗶𝗻𝗲𝘀𝗲 𝗼𝗽𝗲𝗻-𝘄𝗲𝗶𝗴𝗵𝘁 𝗔𝗜 models as a key threat.

➤ Growing Chinese model adoption could trigger an 𝗔𝗜 𝗽𝗿𝗶𝗰𝗲 𝘄𝗮𝗿.

➤ 𝗠𝗶𝗰𝗵𝗮𝗲𝗹 𝗕𝘂𝗿𝗿𝘆 has separately questioned the sustainability of AI demand.

➤ Burry has disclosed bearish positions involving 𝗡𝘃𝗶𝗱𝗶𝗮 and broader semiconductors.

👉 𝗪𝗵𝘆 𝗧𝗵𝗶𝘀 𝗠𝗮𝘁𝘁𝗲𝗿𝘀:

➤ Eisman's estimates suggest significant 𝗔𝗜 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 concentration among two startups.

➤ A model price war could pressure 𝗰𝗹𝗼𝘂𝗱 𝗔𝗜 economics and margins.

➤ Slower OpenAI or Anthropic growth could affect major 𝗰𝗹𝗼𝘂𝗱 providers.

➤ The warning highlights potential risks to elevated 𝗔𝗜 and semiconductor expectations.

👉 𝗘𝘅𝗽𝗲𝗿𝘁 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁𝘀:

𝗦𝘁𝗲𝘃𝗲 𝗘𝗶𝘀𝗺𝗮𝗻:

"The futures of these massive companies, in a sense, are a bet that OpenAI, Anthropic are going to succeed,"

𝗦𝘁𝗲𝘃𝗲 𝗘𝗶𝘀𝗺𝗮𝗻:

"The Achilles’ heel of this whole story ... is if something bad happens to Anthropic and OpenAI ... the Chinese open-end models, open-weight models are much cheaper. And if they start really taking a lot of market share and it sounds like, from what I’m hearing, that they’re starting to, you could have a big price war. And then we have a problem,"