Money Talks with Terry Sandvold and Blake Sandvold
Aug 18, 2026 · 40 min · 13 segments
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Blake SandvoldHost
Terry SandvoldHostKellyHost
[laughs] Uh, yeah, so I, I mean, uh, th- this was something that I, you know, I always kind of en- en- enjoy starting off with a little bit of a thought-provoking type piece.
And, uh, you know, so the theme that I, I started off with was, you know, a slide showing a semiconductor, uh, the AI network, and oil, and saying, you know, "What do they have in common right now?" And, you know, those are three of the largest factors kind of in the near term driving the market.
Yep.
And, you know, you think about semiconductor chips, demand has exploded higher, and we've got some stats in a little bit that we'll talk about how much the hyperscalers are really spending on, on CapEx and, and what that's looking like, and it's massive numbers, right? So they need massive amounts of chips.
And, you know, I think, so you've got a, a ton of demand coming in, uh, supply shortage right now, um, uh, that I think w- will work its way through.
You've got, um, oil, uh, generally speaking, I mean, obviously that's more of a supply-side shock.
Maybe it's faded a little bit in certain areas, uh, try to have some, uh, re- replacement or some general economic slowdown in select countries.
So you've got two things that are supply-demand imbalances right now, uh, working in the market that in our view, the market is kind of extrapolating that too far into the future and saying that these supply-demand imbalances are gonna, uh, stay with us for too long of a period of time.
And you look at, uh, the chip space in general, uh, historically, it's a very cyclical area where prices right now have been pushed higher very fast just because demand has come online so fast.
And, you know, I think we have somewhat of a recency bias to say that trend is gonna keep continuing forever, and we're not gonna bring on capacity.
And, you know, I think with the AI network, there's a lot of, uh, token use that's incredibly inefficient that will probably change, and, um, you know, people may use more open networks, um, a- as opposed to just the large language models, uh, where it's kind of domestically sourced.
And, you know, that may, uh, require less tokens, so you may see some of that energy cost change, uh, and decrease over time as well.
So largely of saying there's a lot of supply-demand imbalances out there that I think could work their way through the system.
Okay, if I can just be the guy in the audience here for just one second.
We all hear about data centers being the buzzwords and all of that sort of thing.
I mean, Blake, you just went right underneath it-
... um, down into a level that actually moves, you know, the, the rest of the pieces, and that is your job.
[laughs]
[laughs] Uh, yeah, so I, I mean, uh, th- this was something that I, you know, I always kind of en- en- enjoy starting off with a little bit of a thought-provoking type piece.
And, uh, you know, so the theme that I, I started off with was, you know, a slide showing a semiconductor, uh, the AI network, and oil, and saying, you know, "What do they have in common right now?" And, you know, those are three of the largest factors kind of in the near term driving the market.
Yep.
And, you know, you think about semiconductor chips, demand has exploded higher, and we've got some stats in a little bit that we'll talk about how much the hyperscalers are really spending on, on CapEx and, and what that's looking like, and it's massive numbers, right? So they need massive amounts of chips.
And, you know, I think, so you've got a, a ton of demand coming in, uh, supply shortage right now, um, uh, that I think w- will work its way through.
You've got, um, oil, uh, generally speaking, I mean, obviously that's more of a supply-side shock.
Maybe it's faded a little bit in certain areas, uh, try to have some, uh, re- replacement or some general economic slowdown in select countries.
So you've got two things that are supply-demand imbalances right now, uh, working in the market that in our view, the market is kind of extrapolating that too far into the future and saying that these supply-demand imbalances are gonna, uh, stay with us for too long of a period of time.
And you look at, uh, the chip space in general, uh, historically, it's a very cyclical area where prices right now have been pushed higher very fast just because demand has come online so fast.
And, you know, I think we have somewhat of a recency bias to say that trend is gonna keep continuing forever, and we're not gonna bring on capacity.
And, you know, I think with the AI network, there's a lot of, uh, token use that's incredibly inefficient that will probably change, and, um, you know, people may use more open networks, um, a- as opposed to just the large language models, uh, where it's kind of domestically sourced.
And, you know, that may, uh, require less tokens, so you may see some of that energy cost change, uh, and decrease over time as well.
So largely of saying there's a lot of supply-demand imbalances out there that I think could work their way through the system.
Okay, if I can just be the guy in the audience here for just one second.
We all hear about data centers being the buzzwords and all of that sort of thing.
I mean, Blake, you just went right underneath it-
... um, down into a level that actually moves, you know, the, the rest of the pieces, and that is your job.
[laughs]
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