Earnings-backed memory momentum over speculative quantum
The guest argued that momentum trades in memory semiconductors are fundamentally supported by earnings, unlike speculative quantum computing names.
The argument
While memory stocks like Micron have run up significantly, they remain reasonably valued on a forward P/E basis. In contrast, quantum computing names are framed as highly risky momentum plays with no near-term earnings prospects or fundamental valuation anchors.
The thesis, stress-tested
✓ What validates it
- ✓Forward P/E ratios for memory stocks remaining stable or compressing
- ✓Rigetti or other quantum names failing to show revenue progress in upcoming quarters
▸ Risks discussed
- ▸Cyclical downturn in memory pricing
- ▸Unexpected capital expenditure shocks
Hear it yourself
"yet. But, obviously, when you're a central banker, and you see inflation printing at, say, o point six, o point 7% of the month, You basically have to to take that into account, and I don't think any central banker really is willing to say that, they support interest rate cuts into such an environment. But we also know what the solution is, Max. You could just open that damn straight, and then you'll probably find, the inflation environment would be a lot more benign in a quarter or two from now. So I"
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