I'm a long-time PlayStation fan. I noticed there are a number of high profile catalysts this year, starting with Spider-Man Brand New Day coming out this summer, which is projected to be a $2B movie. Then in November, GTA 6 finally comes out. Take-Two just confirmed this week they have an exclusive marketing deal with PlayStation, so the biggest video game launch in history is essentially a Sony exclusive, since it's not coming out on Switch 2 or PC and Xbox's install base is less than a third of PS5's.
Seems like this could be a big year for Sony. It's stock is currently near 52 week lows because it got hit by the memory shortage (same with Nintendo stock, so this is sector-wide risk). But once the memory shortage resolves itself, seems like 2nd half of the year looks very promising for Sony. Now is a buying opportunity?
Big year for SONY? Earnings out this Friday.
byu/Friendxx inStockMarket
Posted by Friendxx
1 Comment
Sony looks really compelling because they actually have a major AI chip business that the market hasn’t priced in yet. There’s a very interesting YouTube video that outlines this thesis, just search ‘Chip stock investor Sony’ on YouTube.
Basically Sony runs the world’s largest chip business that makes CMOS image sensors, which are the chips that enable cameras to “see”. Sony dominates this market at 50% market share. Every iPhone has multiple Sony CMOS sensors as Sony is the exclusive Apple supplier for this chip. This chip has major applications in Physical AI, specifically humanoid robots and autonomous vehicles, since the robots and self-driving cars require many of these chips per device to “see” the world. Basically you can’t have humanoid robots or self-driving cars without a lot of CMOS image sensors. This is a huge AI chip angle that the market hasn’t yet priced in. Tesla is building 1 million Optimus humanoids this year, and Google Waymo vehicles are seeing explosive growth around the US. Both Tesla Optimus (and their robotaxis) and Waymo exclusively use Sony CMOS image sensors (between 10-30 of these chips per robot / car). Seems like Sony could benefit significantly from this Physical AI catalyst.
Sony also operates an AI research lab that just published on the cover of the journal Nature, where Sony built an autonomous AI robot that is the first robot to beat elite human athletes at a competitive sport. This robot used exclusively Sony CMOS image sensors for its sensing technology.
Sony could very well be the next Micron as AI moves to Physical AI.