You will never get a chance like this again‼️
Summary
Jeremy argues that the present market environment is fundamentally different from the speculative mania of 2021. He points out that while a few stocks are at record highs, many components of the Dow, along with Bitcoin, Ethereum, and real estate, are significantly below their peaks. He believes this indicates that sidelined money and general investor fear still exist, suggesting the market is not in a state of irrational exuberance. Instead, he focuses on specific winners in the semiconductor and tech sectors where business growth justifies the price action.
Regarding AMD, Jeremy highlights a massive fundamental shift in their business model. He notes that the Total Addressable Market for server CPUs has doubled and the ratio of CPUs to GPUs in AI workloads is moving toward a one-to-one configuration, significantly increasing demand. He observes that Wall Street analysts are currently 'chasing' the stock by frantically raising price targets to keep up with its momentum. Jeremy provides a base-case projection for AMD to reach a stock price between $1,100 and $1,500 by 2030, assuming a 40% average annual revenue growth.
Jeremy also identifies Shopify as a significant large-cap opportunity following its impressive earnings report. He highlights the company's 34% revenue growth, which outperformed Meta, and an 88% increase in operating income. He notes that although some costs rose, the company’s ability to scale gross profit while keeping total operating expenses relatively stable makes it an attractive growth play. He concludes that the acceleration phase for these top-tier growth stocks is far from over.
Mentioned Stocks
Reasoning: Jeremy sees a fundamental shift in the business model where the CPU-to-GPU ratio for AI is moving to 1:1, doubling the TAM. He believes the stock is a 'steal deal' in the $400s with a long-term base case target of $1,100 to $1,500 by 2030, and potentially $3,000 in a hyper-bull scenario.
Reasoning: Jeremy identifies Shopify as a major opportunity due to its 34% revenue growth and massive 88% increase in operating income. He notes that the company is successfully scaling its profitability while keeping total operating expenses under control.