Memory chipmakers ride cyclical demand turn
The guest argued that memory chipmakers like Micron represent attractive cyclical value plays as the industry cycle turns and capacity sells out years in advance.
The argument
The discussion highlighted that companies like Micron are reportedly sold out of high-bandwidth memory capacity through 2028, making their current multiples look attractive if earnings remain stable.
The thesis, stress-tested
✓ What validates it
- ✓Micron reporting sustained high average selling prices for memory chips
- ✓Earnings reports confirming capacity is fully booked through guided periods
▸ Risks discussed
- ▸Cyclical downturns in semiconductor demand
- ▸Earnings instability if macro conditions worsen
Hear it yourself
"One is that you can choose your entry and exit price for stocks. You're not necessarily guaranteed to get that entry or exit price, but that's the other side of the equation that you can make sure you're getting a sufficient return on. Because when they're cash secured so if you take if you wanna go long a stock, you sell a put, which I know is a little bit like inside out the way that people think about it. You buy a put for protection, for downside protection. And so you sell a put, so you're underwriting the stock if it falls below that particular strike. But"
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