The David Lin Report · Friday, July 3, 2026
Semiconductor stocks, including memory, GPUs, and CPUs, represent a significant portion of data center construction costs, driven by capital expenditures. Sam Roman believes Meta's announcement regarding its cloud business is more of an excuse than a primary reason for the recent sell-off in Korean and US tech stocks. He suggests Meta is searching for a new strategy, likening it to a search for another 'unicorn'.
“Well, certainly. So, you know, semiconductors, things like memory, GPUs, CPUs, are a large percentage of the bill of materials. If you build a data center, you have the shell, you have the power, uh, and the support functions around it. But a big part of the spend is the chips and the networks and the networking equipment that go into the racks, that go into the data centers.”
“You know, this is a CapEx boom. So CapEx drives the spending in those critical components. You know, this is going to be a long-term boom, but the stocks have clearly, you know, gone up a lot. What you're seeing right now is a little bit of a digestion. I don't think the CapEx is going to slow down anytime soon, uh, this year or next year.”
“Uh, as it relates to Meta, I think the Meta news is more of an excuse than a real reason for the big sell off in Korea and the tech stocks here today. To be honest, we can touch, we can talk about Meta and detail, but Meta is a company that is in search of a strategy. And the question I have when I when I thought about this company is, is Meta the next Oracle?”