Am regarded, not financial advice. Just my 2c. If you end up at Wendy’s don’t blame me.
I see a ton of positive catalysts for tech and the broader market this year. I’m expecting QQQ to hit $750 by late Summer or early Fall.
1. UAE leaving OPEC — this is massive and unexpected. UAE wants to set its own energy policy and take advantage of oil prices without having to coordinate with the Saudis. This means a more US aligned UAE energy policy + more competition in the markets long term. Short term negligible given Hormuz.
2. Hormuz deal — Iran’s economy is collapsing every day they can’t sell oil. 🥭 looks worse and worse everyday it’s stalled. Follow the incentives — there’s every incentive to bring this to closure as quickly as possible. Even if Iran doesn’t give up nukes 🥭 will be able to spin it positively and open up the strait.
3. MU and AMD — notably I dislike picking specific stocks but these two I couldn’t resist. MU is the only American ticker that produces HBM at scale for the big guys. Half of the street is still treating MU like a legacy memory business that sells laptop DRAM. HBM is much more complex and high margin. It’s unlikely data center growth will pause so what we’re seeing is a much more predictable source of high margin revenue with deeper and deeper entrenchment in the GPU design process.
More notably MU trades at 5-7x forward PE which is insane when semis average is 20x. They’re a high capex business but still.
1. AMD I like because they have double baggers with CPUs (which they have dominant share) and GPUs (nascent but very high potential). Praying Dr. Su doesn’t fumble but yeah.
Anyways — again, not financial advice and I may be autistic and definitely regarded.
Thanks for coming to my ted talk.