It’s the chip machines, stupid!

Let me tell you about something that probably isn’t on your radar.

Something so small in the grand arc of media narratives that it hasn’t quite bubbled to the surface.

Trust me, the people that care about this stuff…

They know.

And in this little box of a story, well, therein lies everything that our world is about.

This world, right now.

Enough bloviating Lachy…
get to the bloody point!

Fair enough, here’s the headline:

Source: Bloomberg

This story is the fate of markets, the fate of our way of life.

All of it…right here.

In a nutshell…

There’s an ongoing clash between the US government and Dutch company ASML, which makes the world’s most advanced chip‑making machines:

Source: Bloomberg

These are the little boxes that I’m talking about.

The ones that hold the fate of the world in their hands.

The punchline:

The US suspects that one of these highly restricted machines, or related equipment, may have ended up in China, even though sales of the top models to China are banned.

ASML flatly denies this, saying its big, complex machines are tightly tracked and cannot be moved or used in secret.

The dispute is straining relations between the US and Europe and raising questions about whether ASML puts profit ahead of security.

In response, US politicians are pushing new laws that could sharply limit what ASML can sell to China in the future.

You’ve heard about the machinations
around Taiwan.

Not too long ago (in October of last year), we showed you the mock-up of the Taiwanese presidential palace in a desert in China.

And, you know, it’s always the little headlines that matter…

But you might wonder, how the heck am I supposed to feel about this?

Should you be fearful?

Should you be greedy?

The investment thesis is clear…

Here’s what I’m talking about!

It’s critical minerals.

The future relies on these things.

It’s the stuff that goes into the technology that determines the contours of any future conflict.

The war may happen; it may not.

We all want peace.

But as tension ratchets, or if it reaches a crescendo…

You’ll likely want to be positioned in the companies that have the materials that shape the world.

In peace and in conflict.

Today, forget the budget. Forget SpaceX. Forget the AI hype beast.

It all hinges on what happens with the chips.

More precisely, the machines that make the best chips possible.

As an investor on the ASX, there are options to play the chip fulcrum that runs the world.

No critical minerals, no chips.

Any war in the (other) Strait would have massive implications for risk levels across the market.

So, if you’re worried about the AI bubble and how to manage risk in a market that’s on a knife-edge — learn about Murray Dawes’ work here.

I’ll be following this story closely in the weeks and months ahead.

You should too.