CNBC & Fox Today On NVIDIA Stock, Micron Stock, Sandisk Stock, SK Hynix - NVDA Update

Stephanie Link bought more micron. I mean the chips have looked pretty good. You got confirmation I think of demand and spend from the hyperscalers. You got it earlier this week from some of the earnings reports that were out as well whether it was coreweave or somebody else. So tell me why super micro or Cisco even. I mean, we we're getting confirmation that the growth is is accelerating. But at the same time, you're still hearing about headwinds from memory prices and that's positive for Micron because they can actually see >> highix too, right? That stock's up last I checked a bunch today. So, tell me more about the the buying more of Micron right now, >> right? So, I started buying it when it's down 40% from its highs. It's now down 30% from its highs. It's so it's hasn't really recovered. Um, and I do think that the visibility is substantial. They have hundred billion dollars in bookings between now and the end of the decade. take or pay contracts. So, they're going to get the money no matter what. They got 22 billion in cash on hand. And I think this company has like the demand is going to exceed supply at least until the end of 27. And I think as a result, this company has something like $40 in earnings power, making this stock awfully cheap with very good visibility. So, I just wanted to continue to buy, double down, average in, and hopefully I'm I'm making the right call. >> Yeah. So, the chip names, as we said, are having a pretty nice week. I mean, Nvidia reports in less than two weeks, Malcolm, BFA raises their CPU TAM today to 210 billion plus from 170 billion. They reiterate that stock as their overall sector top pick. It speaks to the level of demand that we think we're going to continue to get. If you needed more evidence of that, maybe you got it as well when you had Jensen and company in that extraordinary event on this network a couple days ago. um on what they plan to finance in terms of this buildout. >> Yes. And um I am starting to feel like the only sane person in this crazy market looking at this chip trade. Like basically what the announcement from Nvidia and others is telling us is that we're going to start talking about collateralized chip obligations as a separate asset class at some point. Right? Like that's how far into crazy town we've now got. You have moves of 5% or more in each one of these chip names that a lot of times the investors in them or the people trading them more realistically uh don't even necessarily understand the difference between the GPU versus the TPU versus the next thing and the next thing. It's just that the stock has gone up and so I expect it will keep going up and so I'm going to buy this one. And so not to say that the demand isn't real right now within the space, but we have to also consider how long it takes to build out the foundaries to actually deliver the chips and how long it takes for the data centers to actually get connected to power. And by the time all of those things happen, the demand that we're seeing that we're so excited about today has waned and we've moved on to the next thing. And so I think that anybody who's buying a lot of these companies that we're talking about, not talking Stephanie specifically because she's been in a name like Micron for a while and is just adding to a position that has already done well, but the people chasing this trade so late in the game, it it it just looks nuts. July. >> So why do you think Nvidia has underperformed the socks by 59% >> multiple compression? >> Well, I understand that, but I mean, why the fundamentals are strong? because I recently bought it because it it has I refuse to sell it and I understand that but but is it that they're selling are they are they selling Nvidia and Broadcom because both of them have lagged the three selling them and they're buying this other stuff which has much more alpha which is a little scary >> because how do you make a $5 trillion stock go to 8 trillion it's really hard >> I understand that but the growth is still there Josh and the stock is has is trading at 14 times for 85% revenue growth >> we're on the same we're in we're in the same trade The question is though, the question is though, can you envision, can you envision a $40 billion component supplier to the data uh center getting to 80 easier than a $5 trillion? So, I think we we understand like it's harder at a larger market cap to get at now in my opinion, you're right, and that Nvidia announcement with the Justice League of Private Equity, >> the the stock should be 275, right? >> Okay. Immediately. And if it wasn't a five trillion dollar market cap, it probably would already be there, >> right? And then we also talk about free cash flow and this these guys have enormous free cash flow. 90 billion. It's going to double between now and the end of next year. So the hyperscalers are right. But the whole point is everyone was concerned about the hyperscalers and the free cash flow that that is we're seeing depleted. These guys, it's actually accelerating on top of that. >> I think it's interesting though because when Josh said like the professional investors, we're staying put, right? You're staying put. But what I what I've seen in the last few weeks is these crazy moves on Cerebras right on Cororeweave that has to be the marginal investor. So with a $59 billion market cap on something like Coreweave, right? The marginal investor can make a huge impact. The marginal investor can't make any impact. >> I think that's pods. I don't think retail I don't think retail is moving. >> You think you think pods are moving those stocks up 20% one day. >> There's a little bit of 2x. There's a little bit of 2x ETF, but I think but I think the buyer of the buyer of coreweave that takes the stock up 20%. And then it gives nothing back. >> I think I think though the thing is the majority of holders in Nvidia now are the Stefs are the Joshes are the mature you know buy and hold going for a long time and then and they just don't have as big a component a marginal investor in them so they can't move as much. And I think a lot of that move up is just like the crazy town moves right. It's not that, hey, this is a substantial company. >> The crazy town stuff though is happening in smaller market cap stocks, higher beta. They want Korean memory names like that. >> Yeah, but that drives the whole index up to some degree. I mean, you know, you couldn't have you couldn't have the stocks up as much as it is just on Nvidia. Like, it's got to be the smaller stuff that's pulling it up. >> Talk about Nvidia. Another name very similar to to Palunteer in the sense a lot of times after great earnings, the stock reacts by going down and drifting. It doesn't get hammered, but it drifts. It was drifting recently. Uh it's turned around. Many people think this is the the real turnaround now and we've beat we're off to the races. >> And if it is changing or trading at the cheapest valuation it has in the last decade. All right. If you look at it right now and you take that forward multiple you you estimate they beat earnings estimates by 10% which they have consistently over the last few years. You know this should be a $400 stock right now if it's trading at 35 times forward earnings instead of a little less than 20. Um look you can't this isn't going to go forward without the leaders and chips. These Vera Rubins are unbelievable. I I don't I I I'm right now I I was long a lot of AMD and a lot of Marll and I'm rotating back into Nvidia. >> So up until about 30 minutes ago, SanDisk was the number one mover in the S&P. Workday surpassed it on a on a potential takeover. You were at SanDisk uh the the meeting today. What are they talking about? I mean it's it's crazy. It's it's exploding. >> I mean Charles, the meeting could not have been more bullish. They provided guidance through 2030 basically promising 80% gross margins through that period of time. So that was >> 80% margins strong growth for the next how many years >> till 2030. Wow. So that's basically where they have visibility based on their contracts and they said even the lower end of the contracts or the lower pricing of the contracts has this type of margin embedded. And then further than that they're doing a lot of innovation on using memory better. So they're introducing competitive product to HBM called HBF and that's something that I found to be very interesting from the investor there. >> Wow. So so SanDisk it's up again. It's back to it's got its momentum back at swagger back. All the other memory names that you like you still like those as well. >> Well Charles we're actually a little more mixed on memory. I think where you want to be focused in memory right now is companies that solve the memory wall. So every time we hear solutions, so that's why we like this send this comment, right? Like if you can provide more memory or better use of memory, that's where you want to be focused on. AsteroLabs is another one that does the CLX controllers and >> Marvel. Bren, we're going to get Nvidia's earnings couple weeks. It's going to be another seminal moment in this bull market. U today BFA says their TAM is even bigger than we first thought for CPUs. They take it to 210 billion, up from 170. They say it's overall their top sector pick. Is there any reason why it shouldn't be for a stock that you've owned now for a long time? >> And I think the Ford PE is like going to be 21 22. But that's the whole thing is like this shouldn't be a 226 stock. We talked about this I think yesterday. It should be like a 280 stock, but it's not. And so I do respect the market. I think the numbers, we know they're going to be crazy. I think the SpaceX contract is big. These numbers are going to continue to get big. I just like will the market allow this company to go to 7 trillion 6 trillion I don't know to me it's surprising that it's only at 226 but that's where it's like that is that ceiling of what is it going to take to get this stock to actually have even a market multiple of with with with the growth that it has. Um we'll we'll wait and see. But I continue to sell calls as well. I think there's still a lot of a lot of premium to be had on this name because I do think it's gonna have a bit of trouble getting over that 230 238 which is its all-time high. >> Do you think Nvidia is too cheap? And just to remind people and I I I always bring this up just because you used to be in the trenches of the semiconductor industry as a as an analyst. So you know the space >> in which you speak. >> Yeah. >> So I think >> how would you analyze this here? Look, I I think what's in a lot of the Nvidia is different than Micron, right? But I think what what's in a lot of the price is that they're over earning by a lot that their margins are going to have gone substantially. Um and and and you know, I think Bren means shorter term, maybe it has trouble reaching the the high or you know, more of a technical short-term call. But if we're looking out 2 three years, I mean, their earnings are probably going to double before the cycle peak. You know, if you say 15% a year for 5 years, they probably grow more than that. So I think it'll be worth 10 trillion at the end of the cycle whenever the you know buildout's done. So you know we're we're in a maybe more right. So I I think it's just in a you know the stock was unloved for six or nine months there and I think it's starting to act better as people. >> Why do you think it was unwell for that period of time? >> You know it's just um it's so big. There's a lot of 525 rules. I think there was less perceived upside from the retail community. You know, it's just you dream that something can go up a lot and it was easier to dream from March on maybe in in Micron or Sandis >> 25 rule just for people who are wondering what what that means. >> So a lot of mutual funds have rules. Yeah. Their biggest five stocks more than 25%. Right. Right. So Nvidia got to be bigger than the 5%. So you were like structurally underweight capped by risk management rules or the rules of your of your fund. So I I look I I think ultimately their earnings power is going to be so high. One of the things I've changed my mind on in the last nine months is I used to think all that matters is the the rate of change. And then I took a step back maybe in March when we wrote sort of the note on on on Micron saying wait a minute like the level of growth is so high that even if the multiple contracts and price earnings keeps contracting they can grow enough to still be a pretty good stock. And I think you're finally starting to see that again with with the associated companies. >> Well, it's been a it's been a great uh you know seven or so day stretch. Yeah. Right. The stock woke up last week, had a uh one of its best weeks in in in years. Uh and then you had the announcement of the financing thing which just sort of reminded everybody about the position in which they sit. Guys, thanks so much. >> I I also would bring this back to Nvidia. I I still think uh Nvidia is the key and I think Nvidia's been biting its time. I I know uh all we've done is talk about the the gathering that Nvidia had on Monday. uh and I worry about Nvidia trading at a discount almost like a holding company does because of how they have positioned their AI infrastructure exposure but I think Nvidia is about ready to take off and I think this is going to continue to lift semis so I would not be a seller of this move this is different than a a view we've just had on rates and credit but right now growth is winning >> yeah as far as growth's concerned I mean we had Sanders this morning in their analyst meeting and you know the the guidance that they gave and we're looking at 27 through 30 uh I That was some of the metrics and it looks great, you know, I mean, and I think you'd probably have to expect that right here despite the fact the stock sold off 50% from those highs a couple months ago. I think the quarter that they reported was fine. I think relative to the expectations at the time, this I think it goes back a week, week and a half or so. Um, you know, it didn't clear a bar, but when you look out this much further, um, 27 28, you know, it gives you more confidence. The only problem I have with that is at some point in the notsodistant future, you're going to start as an investor discounting a little bit of that and you're going to see this major deceleration, which is what um is built in right there. But these stocks are cheap and if you believe the cycles are longer than a lot of folks that are skeptical, I'm one of them. Um then you know that then you buy this thing as it was down 50% from those highs. It's not something I'm interested in doing because I think that this is going to be the eye of the storm when you do see a pullback um in some sort of demand. And maybe that's a 2027 thing, but between now and then, you know, the stock could make up a lot of room from where it came from a couple months ago. >> So, to Tim's point on a video, I agree with him. I thought it was excessively cheap for a while. The only thing I don't like about the setup going into earnings, which is August 26th, is the run that it's had. I mean, it got caught up in the whole situational awareness. It's up, I don't know, $28 from there, maybe. Um, but I I'm staying on for sure. In those days, new chips regularly made the old ones obsolete. It was meant to do be that way. But you see, that's no longer how it is. Now, Nvidia chips are made differently. As we heard yesterday morning from Coree, arguably the best builder of data centers, they just signed a new deal to lease some Nvidia's A100. Nvidia A100s, those are from 2020, and they're still selling for about the same price as was originally paid. The GPU shortage is just that dire and the chips are just that good. Nvidia's old chips still work just fine. Not only that, Coreweave CEO Michael Intrader has contra those same contracted out those same chips until 2029. That's now 9 years of life, three times more than the bears thought for the same GPU. Now, it's true. I believe that partnering with Nvidia is really the only way for data centers to ensure that their their compute lasts longer. That's because of a thing called CUDA, which is effectively the software operating layer or platform from Nvidia chips. It's the platform developers that they they use it to program their stuff on. The company does software driven upgrades to all of its chips, including the old A100s, which is how they maintain their worth. These aren't penniums. These aren't 386s. There was nothing like that historically. So, how can history repeat itself if the DS are so different? Maybe it's just a bias against hardware. No matter. When you buy Nvidia chips, you're buying Nvidia software right along with them. And that's the big reason why they hold their value. >> All right, I hope you're all doing well today and staying calm in this market. Thursday was a positive day for much of the market. Somewhat mixed under the surface, but positive at the index level as Treasury yields moved lower and the S&P 500 reached a new all-time high. I don't have much time to work on making a video today, so I'm just going to rapid fire some important news stories we got on Thursday. First, Bloomberg reported that OpenAI is on track to generate annualized revenue of more than $40 billion this year, according to people familiar with the matter. That is roughly double the company's run rate at the end of 2025. As a reminder, Anthropics ARR has reportedly surpassed $80 billion, which is up from $9 billion at the end of 2025. That said, we do need to wait for official confirmation from both OpenAI and Anthropic on those ARR figures. Also on Thursday, Iron announced that Microsoft has formally accepted Horizon 1 and that Iron has achieved NVIDIA exemplar cloud status on NVIDIA's GB 300 in VL72. The Horizon 1 through four data centers are 50 megawatts each. Iron is working to deliver the other three Horizon data centers to Microsoft before the end of 2026. Horizon 1 should now start contributing $485 million in annualized revenue for Iron. That's roughly $121 million per quarter. that will not show up on Iron's upcoming earnings report on August 27th, but we should see revenue from Horizon 1 start to show up on the following earnings report. I still expect to be bullish on Iron through 2027, and I'm optimistic about early 2027 as revenue should ramp notably late this year and into 2027. Also, on Thursday, Micron launched the Micron Ventures Paradigm Fund, a $250 million investment vehicle built to partner with AI companies. This is Micron Ventures third and largest fund to date. The fund will invest across the full AI technology stack from model architectures and compute infrastructure to enterprise applications and physical AI. Also on Thursday, SanDisk shared some remarkably bullish details at the company's investor day. SanDisk expects mid to high teens annual revenue per bit growth in fiscal 2028 through fiscal 2030. They're also modeling 80% non-GAAP gross margins, 75% operating margins, and roughly 50% adjusted free cash flow margins. SanDisk expects to return 100% of excess cash to shareholders. Also, SanDisk's new long-term contracting model now covers eight customers, roughly 50% of fiscal 2027 bits and roughly twothirds of fiscal 2028 bits with committed volumes, minimum financial guarantees, and structure pricing. SanDisk also provided some very bullish commentary on high bandwidth flash. Looking ahead, we have Nvidia earnings later this month on Wednesday, August 26th. Now, in case you're new to the channel, I want to make sure that you have at least a basic understanding of the underlying long-term thesis. So, let's cover that. Now, I don't know what's going to happen in the short term, but from a long-term perspective, I am very confident that Nvidia will be worth much more in future years than it is today. When Jensen was on the Lex Freedman podcast not that long ago, he was very seriously raising the possibility of Nvidia becoming a $3 trillion revenue company in the near future. If that happens in the coming years, then it is very plausible that Nvidia could one day be worth tens of trillions of dollars in market cap. That might sound crazy, but that's what Jensen is implying when he raises the possibility of Nvidia becoming a $3 trillion revenue company. I guess the question at that point is what multiple the street will be willing to give Nvidia. I don't know the answer to that question, but I truly do think that Nvidia will be worth much more in future years than it is today based purely on the fundamental growth of the business. Based on everything I'm seeing, the world is still computed and I expect that to continue at least through the first half of calendar 2028. In a computed environment, developers will use whatever viable compute they can get their hands on. Today, there are no GPUs that are sitting dark due to a lack of demand. like there was fiber sitting dark due to a lack of demand at the height of the dotcom bubble. Back then, companies were laying fiber in the hopes that use cases and demand would eventually show up. Today, we are seeing the complete opposite. As I've said many times, when market participants compare this AI revolution to the dot bubble, they ignore the fact that the internet is already here this time. This means that mass adoption of the technology and new use case development at scale are immediately possible. We don't have to wait years for it to show up. It's already here. The world is computed, which means there is not enough supply to satisfy demand. New capacity is utilized as soon as it comes online. The hyperscalers are monetizing capacity as soon as it comes online. Each of the hyperscalers spoke about being supply constrained on their most recent earnings calls. Additionally, many of the clouds are building out into contracted demand. They're not blindly building in the hopes that demand will eventually show up. No, they're building out because they have signed contracts and in some cases significant prepayments from their paying customers. This AI revolution is fundamentally different from the dotcom bubble and 2026 will be a pivotal year for the AI industry thanks to the rapid adoption of agentic AI and the proliferation of agentic systems in the world's leading enterprises. The leading AI labs revenues are surging right now. Agentic coding and the implementation of agentic systems in large enterprises are new use cases that are increasing inference demand significantly that subsequently is increasing compute demand. The rapid adoption of agentic AI is why we're seeing an inflection in inference demand. It's why we're seeing the leading AI labs revenue surge. I wish both Anthropic and Open AAI were public so the public could see the ramp in their revenues. Anthropics ARR has surpassed $47 billion, up from $9 billion just at the end of 2025. Open AI is growing rapidly as well. I think the leading labs surging revenues may be the initial proof point that grabs market participants attention and causes them to realize that there will be a clear ROI on AI infrastructure. I think the leading labs surging revenues will also help assure investors of the longevity of Nvidia's growth since these labs revenues are directly tied to compute. If they had more compute, they would have greater revenues. It really is that simple. Demand is not the problem. The problem is a lack of supply to meet the demand. As I've said previously, I expect the world to be compute constrained at least through the first half of 2028, possibly longer. And so regardless of what happens in the short term, it's important for long-term investors to remain focused on the fundamentals, maintain a long-term perspective, and remember that we are only in the early stages of aic systems being adopted at scale. This will increase compute demand significantly. And after that, the next surge in compute demand will likely be fueled by physical AI. We're no longer talking about digital agents performing digital tasks. With physical AI, we're talking about physical AI agents performing physical tasks in the real world. Nvidia CFO has called physical AI quote a multi-t trillion dollar opportunity and the next leg of growth for Nvidia. This industry will fundamentally transform society and Nvidia has positioned themselves to benefit massively. Nvidia sells the hardware for the data centers where the models are trained. They offer omniverse where the models are taught and tested and Nvidia also sells the hardware that allows ondevice real-time inference through Nvidia AGX allowing robots to have intelligent interactions with the real world even when they are not connected to a data center. Notice that Nvidia is taking a holistic platform approach to physical AI and they're embedding themselves as the underlying foundation supporting all of it. Over 2 million developers are already building on the Nvidia robotic stack and this is not getting enough attention. As for production ramps, Blackwell Ultra has ramped quickly and remains in high demand. Reuben is on track to launch in 2026. Then we're expecting Nvidia Gro 3 LPX in the second half of 2026. Later on, we're expecting the launch of Reuben Ultra in 2027 and Fineman after that in 2028. We have a clear data center product roadmap stretching into 2028. And Jensen believes that AI infrastructure spending will reach three to$4 trillion annually by the end of the decade. That means Jensen is expecting growing AI demand and an expanding total addressable market underpinning all of this. I don't think we are anywhere near any type of bubble bursting type of event. With all of this in mind, I seriously think that Nvidia still has plenty of runway ahead of it. And I think this company will be worth substantially more in future years than it is today. At least that's my view of the situation. Quick note before I wrap up. All of the compilations on this channel are edited by Finn Vid with original structure and commentary. Occasionally, the same edits appear elsewhere on YouTube. If you're looking for the original version, it's always here on this channel. Thanks for watching Finnvid. I appreciate your support. Remember to stay calm in this market. Remember to maintain a long-term perspective and do not make any hasty or irrational decisions. With all of that being said, I hope you all have a great rest of the day, and I'm curious to hear your thoughts about Nvidia in the comments below. Please leave a like on this video so more people will see it. And while you're down there, please consider subscribing. It's free and you can always change your mind.