Why Semiconductor Stocks Are About to Explode | Ben Reitzes Analysis

All right. >> Two comments. I don't know. Are you Are you going to cover this name? Would you recommend it? >> Well, I'm I mean we can say right now I'm going to recommend Sandisk and it is important to see how it generally should get a little bit of a better multiple than it might get on its own. I'll be watching it closely. You know, we we know some of the investors that backed it and you know, think a lot like that. >> How How pure of a memory play is it relative to some other names? And how would you gauge it in a shallow downturn cyclically or more dramatic downturn cyclically? >> Well, I think the key, you know, without getting into too much detail is that they are the leader in HBM. It's that DRAM for super fast AI workloads. And HBM was a new category. I didn't even know what it was I don't know three years ago four years ago and now it's a huge thing. These guys are the leader in that. We are the most AI-centric company. You know, of a lot of these names the three players Samsung and Micron and their share you know, can fluctuate here and there. But all all the memory peers are essentially lights out right right now and this is the purest way to play HBM, the super fast memory that is in such high demand for the second video. >> Um you remain bullish of course on the semis. You've made that point many times here in terms of you want to be where the money's going, not necessarily from where it's been spent. How long is that going to keep going? How long I mean how long is that How long a life does that trade have in your opinion Ben? >> As a long time David it's this is like nothing we've ever seen. I mean we haven't even gotten into robotics yet. Uh where you're going to be having robots and things in the field that are giving data back to home base and training on the fly and inferencing and we haven't even really seen that scale yet. And what what we think is going on is this is on its way towards artificial general intelligence, whatever whatever acronym you want to throw out there and talk about, but we think that this is going to be just keep going. Yeah, there'll be fission startups. There's probably a bubble in the people calling it a bubble, but this is like we don't even have the fleets of robots out there and we think that this is going to keep going for a very long time. >> What about the questions on, you know, cheaper tokens and you know, you you've heard all the all the narrative swings in the past few weeks and why that sowed some some doubt in the in the hype around the AI trade? >> Well, what's going to happen when token costs go down and it it's going to increase usage and it's going to make it easier for physical AI and other coding and other things to really take over. We haven't even seen like look, we've obviously been negative on software, SaaS really software for a couple years now and you know, and a lot of the software names and we haven't even seen really what the goals of an AI factory are, which is to create software really on the fly. There are more autonomous agents doing things for you. This is just getting going. So, that's great news that token costs go down cuz that will increase use usage and like I wrote in a note recently, I wish I had a trademark and was getting paid every time you Jevons paradox would get mentioned because it's really still in in that you know, in that phase where Jevons paradox is going to take off and we're really just at the beginning.