These 2 Stocks are about to BALLOON‼️
Summary
Jeremy provides a comprehensive market outlook, emphasizing that the current bullish momentum in several key sectors, particularly semiconductors and AI, is likely to continue in the short to medium term. Jeremy warns against attempting to 'top call' these rapidly rising stocks too early, suggesting that the earliest realistic time frame for a market top is late this year or early next year, with earnings potentially topping two to three years later. Jeremy highlights an impending 'slowdown cycle' for the semiconductor industry, driven by the mathematical limitations of hyperscalers like Google, Meta, and Amazon, which he believes cannot sustain dramatically increased capital expenditure budgets indefinitely without facing financial strain through debt or dilution. Despite these long-term concerns, Jeremy sees significant near-term potential in specific companies.
Here are some of the stocks Jeremy discusses:
Jeremy concludes by reiterating his belief that the semiconductor industry operates in cycles, with current "overearning" expected to peak around 2028, followed by a slowdown phase where companies might under-earn for three to five years. Jeremy advises that the best time to cash out profits on many semiconductor stocks will likely be from Q4 of this year into Q1 and Q2 of next year, as incredible excitement over earnings will provide good exit liquidity for early retail investors.
Mentioned Stocks
Reasoning: Jeremy includes Broadcom in the list of companies that will eventually enter a cycle of moving "up and down, up and down, but not really going anywhere," similar to NVIDIA's recent performance. He also questions Broadcom's ability to raise prices significantly without driving customers to competitors like AMD or NVIDIA.
Reasoning: Jeremy states it is too early to 'top call' Micron, implying further upside. He expects Micron, along with other memory chip companies, to "dramatically overearn" in 2026, 2027, and potentially 2028 before an inevitable slowdown cycle. Jeremy notes Micron's low two-year forward P/E of five but cautions against expecting a dramatic multiple expansion. He also confirms he will not short Micron next year, indicating a positive short-to-medium term outlook.
Reasoning: Jeremy is highly optimistic about Celsius, giving it the nickname "Celsius the wealthiest." He firmly believes the stock is "ready to move" dramatically and predicts it could "double up in months, not like years," suggesting a significant and rapid appreciation.
Reasoning: Jeremy notes that ELF stock tends to take "a little breather" periodically but consistently comes back "very, very strong every single time." His assessment suggests a reliable pattern of resilience and strong rebound potential following any temporary dips, indicating a bullish outlook.
Reasoning: Jeremy expresses a cautious near-term view, observing that NVIDIA has been trading sideways for months, moving "up and down, but it's not really going anywhere." He notes that NVIDIA's prices are already "sky-high" and may not be able to increase further, especially with competition from AMD. While acknowledging its strong fundamentals, Jeremy places NVIDIA in the group of companies expected to 'dramatically overearn' until 2028, followed by a slowdown phase.
Reasoning: Jeremy is very bullish on AMD, being up $100,000 on the stock, and believes it will hit $600+ very soon, possibly within the next two weeks. This is based on his expectation of an "insane guidance number" in the upcoming earnings report, which he thinks will lead to a 10%+ stock jump. Jeremy advises against selling his own AMD shares prematurely and suggests others consider positioning into the stock before earnings. He considers a weak guidance as highly unlikely and shocking.
Reasoning: Jeremy states that Salesforce is "ready to absolutely explode higher" if it delivers strong guidance and a positive conference call during its earnings report. He warns that weak guidance, however, could send the stock back to $150, indicating a conditional but significant upside potential.
Reasoning: Jeremy anticipates a robust performance from American Express in its upcoming earnings report, expecting it to deliver "a great beat," possibly even a "triple beat," indicating a highly positive forecast for the financial services company's results.
Reasoning: Jeremy implies a strong bullish long-term outlook for Palantir by criticizing the strategy of selling good stocks just because they are up a lot. He uses Palantir as an example, stating that selling it at $14 only to see it potentially go to $200 is a mistake, advocating for holding onto great stocks through their growth phases. He also suggests it could move higher if ServiceNow has strong guidance.
Reasoning: Jeremy states that Service Now is "ready to absolutely explode higher" if it delivers strong guidance and a positive conference call during its earnings report. He warns that weak guidance, however, could send the stock potentially under $90, indicating a conditional but significant upside potential.
Reasoning: Jeremy suggests that Microsoft's stock will "move higher" if ServiceNow comes in with a strong earnings guide and a good conference call. He views Microsoft as part of a broader technology ecosystem that will benefit from positive sentiment and performance in the enterprise software sector.
Reasoning: Jeremy emphasizes Google's critical importance due to its massive market cap and expects it will likely increase its capex or commit to the highest end of its projections. However, he also articulates significant long-term concerns, believing Google, along with other hyperscalers, will face mathematical limitations and cannot sustain infinitely increasing capex budgets after next year, leading to an eventual slowdown in AI infrastructure demand.
Reasoning: Jeremy suggests that Intuit could "catch a bid" and move higher if ServiceNow delivers a strong earnings guide and conference call. He notes that these companies are often grouped together in ETFs, implying a positive ripple effect from strong performance in the broader software sector.
Reasoning: Jeremy believes that Adobe could "catch a bid" and move higher if ServiceNow delivers a strong earnings guide and conference call. He suggests that many software companies, even those not in the exact same niche, are often grouped together in ETFs and benefit from collective positive market sentiment.
Reasoning: Jeremy criticizes the strategy of selling Marvell merely because the stock is "up a lot." He argues that great stocks go on great runs and should not be sold simply due to appreciation, implying it should be held based on fundamentals and long-term potential.
Reasoning: Jeremy mentions SanDisk (a Western Digital brand) as a memory chip play that will "dramatically overearn" in the short term but eventually face a "slowdown cycle" after 2028. He also includes it in the group of stocks that will ultimately enter a sideways trading pattern, moving "up and down, but not really going anywhere."
Reasoning: Jeremy criticizes the strategy of selling Pterodine (likely Teradyne) merely because the stock is "up a lot." He argues that great stocks go on great runs and should not be sold simply due to appreciation, implying it should be held based on fundamentals and long-term potential.
Reasoning: Jeremy includes Samsung among the memory chip companies expected to "dramatically overearn" in the short to medium term (up to 2028) before entering a predictable "slowdown cycle" characteristic of the industry. This implies a cautious long-term view despite near-term strength.
Reasoning: Jeremy includes SK Hynix among the memory chip companies expected to "dramatically overearn" in the short to medium term (up to 2028) before entering a predictable "slowdown cycle" characteristic of the industry. This implies a cautious long-term view despite near-term strength.