This is one of the few companies generating the chips that are needed, expert reveals

STOCKS IS A BUYING OPPORTUNITY. DRIEDEN PENN'S CIO OF PENN'S CAPITAL MANAGEMENT JOINS US NOW WITH THE CHIPS ON THE DIPS PLAY. WHY SHOULD I NOT BE WORRIED ABOUT MICRON. >> BECAUSE THE KEY ISSUE HERE IS A.I. HAS MOVED FROM PROOF OF CONCEPT INTO RAPID ADOPTION. AND WHEN YOU TAKE A LOOK AT MICRON, IT IS ONE OF THE FEW COMPANIES THAT REALLY IS GENERATING THE CHIPS THAT ARE NEEDED, THE MEMORY THAT'S NEEDED. THERE'S NOT ENOUGH MEMORY OUT THERE, AND SO YOU HAVE THE HYPERSCALERS SPENDING A TREMENDOUS AMOUNT OF MONEY TO TRY TO KEEP UP WITH THIS SENSATIONAL DEMAND, AND MICRON IS AT THE CHOKEPOINT OF IT. THEY'RE GOING TO CONTINUE TO HAVE A LOT OF DEMAND -- TAYLOR: OKAY. SO ALL THE CRITICSCS SAY MICRON GOES THROUGH THIS CYCLE EVERY FOUR YEARS. IT'S ALWAYS THE SUPPLY AND THE DEMAND SHORTAGE. THIS IS CYCLICAL, IT HAPPENS ALL THE TIME. IS THIS TIME DIFFERENT. >> THIS TIME IS, I THINK, DIFFERENT IN THAT YOU HAVE A BILL PULLBACK OF -- BIG PULLBACK OF THE STOCK, OF COURSE, BUT YOU HAVE THIS MASSIVE MOVEMENT IN EARNINGS. I LIKE IT WHEN E GROWS FASTER THAN P, AND AND THE EARNS ARE GROWING -- EARNINGS ARE GROWING A LOT FASTER THAN THE PRICE. TAYLOR: YEAH. AND THIS WAS A $1200 STOCK. EVERY ANALYST SAID IT'S GOING TO 1500 2000 2500. WHERE DO YOU SEE THIS STOCK GOING? >> I THINK -- IT'S VERY HARD TO PUT A PRICE ON THAT BECAUSE THE UNDERLYING QUESTION IS, IS HOW MUCH A.I. ADOPTION ARE WE GOING TO HAVE? I THINK IT CAN GO SIGNIFICANTLY HIGHER, BUT EXACTLY WHERE, IT'S HARD TO SAY. 56% OF COMPANIES IN AMERICA NOW HAVE AN A.I. ACCOUNT, AND THEY'RE BEGINNING TO BUY MORE AND MORE. BUT THEY'RE JUST SCRATCHING THE SURFACE AT THIS POINT. YET. A.I. IS INCREASING LABOR PRODUCTIVITY, INCREASE PROFIT MARGINS AND THAT'S GOING TO INCREASE DEMAND GOING FORWARD. TAYLOR: WHENEN YOU SAY A.I., EVERYONE IN THIS COUNTRY THINKS NVIDIA. BUT THE STOCK HAS BEEN, LIKE, A BLAH RELATIVE TO, LIKE, THE CHIPMAKERS, THE SOCKS INDEX THAT'S UP 70, 80% EVEN WITH A MASSIVE PULLBACK. HOW DO YOU GET EXCITED ABOUT NVIDIA? >> AGAIN, WE LOOK FOR COMPANIES AT CHOKEPOINTS. WHEN YOU TAKE A LOOK AT NVIDIA RIGHT NOW, IT'S AT, LIKE, A 21 PE, BUT ITS EARNINGS ARE GROWING AT 46%. WHEN YOU TAKE A LOOK AT EARNINGS GROWING THAT PAST OVER THE NEXT TWO YEARS AND GOING FORWARD, I THINK YOU'RE JUST GOING TO SEE THIS TREMENDOUS AMOUNT OF MONEY. THE HYPERSCALERS ARE SPENDING IT, AND PEOPLE LIKE NVIDIA ARE GETTING IT. TAKE A LOOK AT THE FREE CASH FLOW. IT'S TREMENDOUS. SO WE THINK OF THESE THINGS GOING FORWARD -- TAYLOR: WHAT ABOUT CIRCULAR FINANCING? NVIDIA'S INVESTED IN THIS DATA CENTER, AND IN RETURN THEY'RE GIVING NVIDIA CHIPS AND COMPUTE, AND IT'S ALL THIS ONE BIG CIRCLE, AND IT'S MUSICAL CHAIRS. WHEN THE MUSIC TO STOPS, SOMEONE'S TO GOING TO GET LEFT BEHIND. DO YOU NOT WORRY ABOUT THAT? >> NOT QUITE SO MUCH. TAYLOR: K. >> AND THE REASON IS THAT OVERALL DEMAND I IS SO HIGH, I THINK WE HAVE A LONG TIME TO GO BEFORE YOU RUN INTO THAT -- TAYLOR: OKAY. >> AND THERE'S NOT THAT MANY PLAYERS HERE. YOU'VE GOT ONLY FOUR OR FIVE SUPPLIERS TO ALL THE HYPERSCALERS, SO THERE'S JUST NOT THAT MANY FOLKS. NO ONE'S PULLING CHAIRS AWAY RIGHT NOW -- TAYLOR: OKAY. NOT YET. >> NOT YET. TAYLOR: OKAY. >> BUT I THINK THE POINT OF THE MATTER IS WE JUST HAVE THIS HEAVY, HEAVY DEMAND AND VERY FEW! ERS. SO I THINK THIS -- SUPPLIERS. I THINK THIS THING HAS SEVERAL YEARS TO RUN. TAYLOR: OKAY. >> AND THAT'S TO WHY WE SAY BUY CHIPS ON THE DIPS. IF THE MARKET'S TO GOING TO BE VOLATILE, LET'S TAKE ADVANTAGE AND NOT BE ITS VICTIM. TAYLOR: 30 SECONDS, WE HAVE TO TALK ABOUT MICROSOFT. THEY WERE LEFT FOR DEAD. IT WAS THE BIG UNDERPERFORMER OF THE YEAR. NO ONE LIKED THE MAG 7 ANYMORE, EVERYONE HATED MICROSOFT. MASSIVE RALLY LAST WEEK. IT'S BACK, IT'S IN IT TO WIN IT. WHAT DO YOU U MAKE OF MICROSOFT? >> WE LIKE MICROSOFT. I MEAN, IT IS SO EMBEDDED IN THE BUSINESS OF AMERICA. AND WE'RE IN THE BUSINESS OF BUYING PROFITS X. THIS COMPANY IS HIGHLY PROFITABLE. AND YOU'RE BEGINNING TO SEE ALL OF THIS INVESTMENT TURN INTO GREATER PROFIT MARGINS AS THEY GO FORWARD, AND WE WANT TO CAPTURE THOSE. AGAIN, YOU SEE MICROSOFT GROWING AT A 20% EARNINGS? WE KIND OF LIKE IT. TAYLOR: FIREWORKS FOR YOU. EVEN WITH THE RED EYE, YOU LOOK GREAT. THANK YOU SO MUCH FOR BEING HERE. AND WE ARE CUEING THE FIREWORKS. THE DOW, AS YOU CAN SEE, HITITTG A RECORD FOR THE YEAR. THE S&P 500 NEEDED MORE THAN 120 POINTS TO HIT THAT RECORD. DIDN'T QUITE MAKE IT. WE'LL TRY AGAIN TOMORROW. TH