The analyst suggests a bullish stance on AI-related stocks and ETFs like SNDK, INTC, MU, DRAM, and SMH, highlighting strong year-to-date gains and recommending some allocation towards the AI supercycle theme.
Billions in hyperscaler capex flowing to upstream AI enablers driving strong stock performance; YoY growing hyperscaler capex forecasts indicate continued uptrend.
We're in a stock picker's market: Thanks to Billions in hyperscaler capex flowing to upstream AI enablers: -> $SNDK: 512% YTD -> SK Hynix: 238% -> $INTC: 199% -> $MU: 195% -> Samsung Electronics: 126% Compared to $SPY: 10% It's genuinely very easy to beat the market these days if you absorb information from the right places + have high conviction in a trade. And for those who don't like the risk: I believe it's crucial to have some kind of tilt towards the AI supercycle in some way. Even whether that's via a small allocation to $DRAM or $SMH for example. Just look at the YoY growing hyperscaler capex forecasts. I only see this uptrend continuing for the forseeable future.
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | +1.0% | +0.8% |
| 1 week | +5.0% | +4.7% |
| 1 month | +15.0% | +16.8% |
| 3 months | — | — |
| 6 months | — | — |