‘There is an EVOLUTION to the semiconductor trade,’ says chief investment strategist

BANK OF AMERICA WILL SURVEY, SURPRISE, LONG SEMICONDUCTOR IS THE MOST CROWDED TRADE BUT IT'S NOT JUST THE MOST BUT IT COMPETED THE RECORD, 80% NOW 82%. THIS CREATES A CONUNDRUM FOR WALL STREET BECAUSE WALL STREET LEARNED TO HATE EVERYBODY ELSE LOVES IT SORT OF LIKE REESE'S PEANUT BUTTER CUPS, HARD TO RESIST. FOR THIS REASON, MY NEXT GUEST SAYS THIS COULD BE A MORE VOLATILE. CHIEF INVESTMENT STRATEGIST, ANASTASIA, LET'S TALK ABOUT SOME ICE FOR MOMENT, 82%. NOTHING ELSE IS ON THE LIST, EVERYONE IS IN THE SEMIS, WE LOOK AT THE SAME DATA AND WE SEE THE NUMBERS AND IT'S ALMOST HARD TO BELIEVE IT, IT COULD BE GOOD BUT IS LONG AND THIS IS WHERE THIS PRESENT. >> THE TRADE HAS EVOLVED, WHAT KIND ARE YOU IN? , YOU ARE PROBABLY UP FIVE OR 6%, MAYBE A LITTLE MORE BUT MEMORY CHIPS, HE MIGHT BE UP TO 50% IF YOU INVEST IN KOREA AND TAIWAN SO I DO THINK THERE IS AN EVOLUTION TO THE SEMICONDUCTOR TRADE BUT WHAT ALSO IS GOING ON AND THAT'S MY CONCERN HERE, THERE'S A LOT OF LEVERAGE THAT HAS CREPT INTO THE SYSTEM AND A LOT OF RETAIL SO WHAT I WOULD WORRY ABOUT IS IF THERE IS SHARPER COMMERCIAL IN THEE THESIS, IT COULD COME WITH THE MARKETS BECAUSE OF THAT LEVERAGE. FUNDAMENTALLY, I DO STILL BELIEVE IN THE MOBILE SEMI TRADE. >> YESTERDAY, IT GOT HAMMERED BUT IT TRIGGERED MORE MARGIN CALLS AND IT WAS GETTING BETTER AT THE SAME TIME AND THEY COEXISTED. I WANT TO ASK YOU ABOUT MAG SEVEN, IT'S SO LOW ON THE LIST NOW, DOES IT ENTICE YOU A LITTLE BIT AS A CONTRARIAN WORD? >> YES BECAUSE IF YOU THINK ABOUT MAG SEVEN, THEY ARE THE BENEFICIARIES OF ARTIFICIAL INTELLIGENCE. THEY ARE BIG SPENDERS BUT THEY ARE GETTING ROI ON THEIR UP NEXT SEEING HIGHER REVENUE AND BACKLOG REVENUE IN THE THIRD PART WHICH MAYBE IS UNDERAPPRECIATED, THEY USE AI AND THE OTHER NON- CLOUD BUSINESS IS SO IF YOU ARE AMAZON E-COMMERCE RECOMMENDATIONS AND THE ENGINE TO POWER THE SIGNIFICANT, IF YOU ARE META, DIGITAL ADVERTISING IS GETTING MORE POWERFUL SO I DO THINK IT IS ENTICING AND THEY'VE MOVE FORWARD. >> THE SEMICONDUCTOR CHART, YOU LOOK AT IT THIS WAY, IT LOOKS OKAY NOT TOO BAD BUT AGAIN IN THE LAST TWO WEEKS, 14, 2000 POINTS AND WE KNOW IT'S UNNERVING. YOU LIKE U.S. OVER EUROPE, POSTS BUT -- I WAS GOING TO HIT YOU HARD. >> WE CAN TALK ABOUT IT. >> HERE'S THE THING, THIS IS THE NEEDS AND THIS TAKES YOU OUT TO 2030. AGAIN, IT FEELS LIKE FUNDAMENTALS ARE HARD TO ARGUE. >> AND THERE'S ONE PARTICULAR PART OF MEMORY WHICH IS THE HIGH BANDWIDTH, MEMORY, AI DATA CENTERS AND THAT'S WHAT WE ARE SHORT OF BUT AS A RESULT OF SHIFTING CAPACITY TO BUILD THOSE, CAPACITY MOVES AWAY FROM THE OTHER MEMORY CHIPS AND AS A RESULT, IF YOU LOOK AT THE AVERAGE SELLING PRICES FOR ALL KINDS OF MEMORY CHIPS GOING DOWN OR UP I SHOULD SAY, SHIPMENTS ARE GOING UP SO THAT IS WHERE THE STRENGTH IS IN THAT HAS NOT CHANGED AND THE LAST QUICK THING I WANT TO SAY, A LOT OF THESE MEMORY COMPANIES ARE SIGNING LONG-TERM CUSTOMER CONTRACTS SO AS AN INVESTOR I HAVE TO WONDER WHAT IT DOES TO THE MULTIPLE IF YOU ARE NOT JUST A CYCLICAL SEMICONDUCTOR TRADE BUT A LONGER-TERM CUSTOMER BASE. >> IT GIVES YOU MORE CONFIDENCE THE MCINTYRE MULTIPLE POTENTNTIALLY. >> WE KNOW CHANGE, IT'S THE NEXT BIG DEAL. BRING UP THE SECTORS, LET'S SKIP THE NEXT CHART BECAUSE I KNOW YOU LIKE U.S. OVER EUROPE, BUT THE INDUSTRIALS AND HEALTHCARE SERVICES AND TECHNOLOGY, THE HEALTHCARE PART IS TRICKY FOR ME BECAUSE THERE ARE PARTS OF IT, BIOTECH AND THE PATENT ISSUES BUT IT DOESN'T SEEM TO ACT THE WAY HE WOULD THINK IT WOULD AT THIS STAGE. >> THAT'S TRUE AND THERE'S SO MUCH IN HEALTHCARE, THERE IS PHARMA AND THE POLICY EXPOSURE BUT I WANT TO LOOK AT EDIT AT THE LONGER-TERM INVESTOR STANDPOINT AND ONE OF THE BIGGEST ISSUES IN HEALTHCARE PENDING IS MASSIVE BUT NOT NECESSARILY USING THE MOST EFFICIENT WAY SO WHERE WE ARE FOCUSED ON IN HEALTHCARE IS THE DEPLOYMENT OF ARTIFICIAL INTELLIGENCE AND TECHNOLOGY TO ACTUALLY SOLVE THE BOTTLENECKS SO WE INVEST IN DIAGNOSTICS AND AI DRIVEN DIAGNOSTICS. >> ANOTHER AREA HE POINTED OUT FROM A LONGER-TERM INVESTMENT IS SPORTS. I SAW THIS HEADLINE NOT LONG AGO, $2.5 TRILLION OPPORTUNITY, HOW DO WE GET A PIECE OF THE ACTION? >> MAYBE NOT THAT ONE BUT IT IS TRULY $2.3 TRILLION MARKET SLICED BETWEEN THINGS LIKE YOUTH SPORTS AND PROFESSIONAL SPORTS AND MEDIA RIGHTS AND MERCHANDISE SO I WOULD SAY YOU CAN GET INTO SO MANY OF THESE SLICES THE FIRST IS TO NOT OVERLOOK THIS OPPORTUNITY SO AS WE LOOK AT THE GROWTH IN YOUTH SPORTS, IT'S A BIG SLIVER OF THE $2.3 TRILLION NUMBER AND THE OTHER THING IS, SPORTS AGENCIES AND BUILDI