AMD, Micron, Sofi, Fubo Investors Get Ready‼️
Summary
Jeremy provides a comprehensive analysis of the current 'risk-off' market environment, suggesting that the weakness in software and semiconductor stocks is driven more by liquidity needs and private credit redemptions than by failing business models. He draws parallels to the Great Financial Crisis, noting that high-quality companies are trading at 'silly' valuations. Jeremy is particularly bullish on AMD, noting its decoupling from the broader Nasdaq move.
Mentioned Stocks
Reasoning: Jeremy views the 18% drop after perfect earnings as irrational profit-taking. He believes the fundamentals remain strong through 2026/2027. In a bear case scenario, he suggests the stock could go sub $200, but currently sees it as a major opportunity.
Reasoning: Jeremy would buy Nvidia after Microsoft if forced to pick Mag 7 stocks, though he warns that current margins are unsustainably high and could face a massive cut in a 2028/2029 recession scenario, potentially dropping to $125.
Reasoning: Jeremy is a large shareholder and is very bullish due to reports of 15% price increases for CPUs. He expects margins to expand significantly over the next year. He notes that if the market moves to a 'risk-on' phase, AMD will fly. In a bear case scenario involving a recession, he sees the stock stuck in a $250 to $350 range.
Reasoning: He sees the stock as bottoming out. If the market stabilizes, he believes SoFi is positioned to return to $20 plus.
Reasoning: Despite the heavy selling, Jeremy maintains faith because the income statement and balance sheet are in the best position they have been in a long time. He expects a much higher price in 9-12 months.
Reasoning: Jeremy states that Microsoft is one of the best companies in the world and its current weakness (down 32% from highs) is disconnected from reality. It is his top pick in the Mag 7 if excluding Meta and Amazon.