Chip earnings growth debunks bubble fears
The massive rally in technology and semiconductor stocks is fundamentally supported by an unprecedented explosion in forward earnings rather than speculative bubble expansion.
The argument
The hosts highlighted Micron's forward EPS estimate skyrocketing from $9 to $85, arguing that the market is rationally pricing in actual earnings inflections rather than mere valuation multiple expansion.
The thesis, stress-tested
✓ What validates it
- ✓Micron meeting or exceeding the $85 forward EPS estimate
- ✓Continued upward revisions in semiconductor forward earnings
▸ Risks discussed
- ▸Cyclical downturns in semiconductor demand
- ▸High starting valuations if earnings growth decelerates
Hear it yourself
"Think, this is another aggressive CapEx spender, and there are some questions about how tethered they are to OpenAI. So it's weird. Like, OpenAI, there was bad news about it in the journal, which we're gonna talk about. That was weird. Went up. The timing of the release today, like, why? It was like, oh, OpenAI misses internal guidance. I don't believe any of this shit. So weird story to print. Because well, they came out and denied it. So the journal did this thing the journal did this thing where they're quoting people that"
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