This Stock will hit $500‼️
Summary
Jeremy emphasizes a market philosophy centered on 'controlling what you can control,' drawing parallels to the coaching strategies of Nick Saban and Bill Belichick. He argues that many investors have cost themselves fortunes by sitting in cash or treasuries while waiting for a market crash that hasn't materialized. According to Jeremy, the key to success in the current bull market is ignoring the 'noise' of market timing and focusing strictly on micro-steps like grading income statements, listening to earnings calls, and projecting future earnings per share growth.
Regarding the semiconductor sector, Jeremy provides a nuanced outlook on the differences between AMD and Micron. While he remains highly bullish on AMD due to underestimated CPU and GPU demand, he expresses caution regarding Micron’s current peak margins, which he believes are unsustainable in the long term. Additionally, Jeremy highlights a major opportunity in the Software as a Service (SaaS) space, specifically with ServiceNow, noting that its valuation has compressed significantly even as its business fundamentals and free cash flow reach record highs.
Mentioned Stocks
Reasoning: Jeremy warns that Micron is a cyclical stock currently at a peak margin phase (60% net margins) that is not sustainable. He notes that the stock price often peaks well before the profitability cycle peaks and suggests it is usually better to buy when the P/E is high and sentiment is negative.
Reasoning: Jeremy considers the stock a 'load the boat' opportunity. He states that anything under $100 is a 'steel deal' and encourages buying regardless of whether the stock moves up or down following its earnings report.
Reasoning: Jeremy views Nvidia as a primary catalyst for the semiconductor sector. While he likes the company, he notes it has a high bar to 'shock and awe' the market compared to previous years, and its upcoming earnings will dictate the short-term direction of stocks like AMD.
Reasoning: Jeremy notes this is his largest public position. He believes the forward P/E is actually lower than reported because CEO Lisa Su consistently beats estimates. He expects massive margin expansion from surging CPU and GPU demand, projecting the stock could reach $1,000+ in the coming years.
Reasoning: Jeremy has been buying shares and highlights that while revenue, EPS, and free cash flow are all trending upward, the historical PE ratio has trended downward, making the stock relatively cheap. He views it as a top-tier business model and a major AI beneficiary.