This Will Be MUCH BIGGER Than Nvidia

Folks, the memory trade has been one of the most extremely profitable in history. If you put just $100 in Micron just one year ago, you would have $818 today. But that is just the tip of the iceberg. Memory prices are continuing to skyrocket with years of soldout supply resulting in widespread industry scarcity leading to insane pricing power. DRAM contract prices went up in the low 60% range in a single quarter. ND went up in the mid 80s. high bandwidth memory. The memory inside every AI chip is sold out through 2027 at all three companies that make it. Hard drives are sold out through 2027. The FABS are spending some $150 billion this year on capacity that doesn't even come online until late 2027 and into 2028. And every serious estimate puts this shortage as lasting out to 2028 and even onwards past 2030. Oof, that's a big shortage. Now, because many of these stocks have already run a lot, people think, you know what, I just missed the boat. There's no more upside from here. Some stocks have gone up too much. factored in too much, but there's others that are a great opportunity. So, by the end of today's video, I'm going to present you everything that you need to know about the memory trade. We're going to present the entire stack. We're going to start by breaking down each of the seven layers of the memory stack, which is over 20 stocks, what each company does, what the value ad is. Secondly, I'm going to put every single one of these stocks on a valuation table, earnings and revenue per share-wise, so you could see exactly which ones are still cheap. The answer is going to surprise you. Thirdly, the small benefactors. a $5 stock, a $6 stock, a $29 stock, specific small companies that a lot of people aren't talking about that could be set for big rallitos if the memory trade continues to brew as we see right now. By the end of this video, you're going to be on a whole other level when it comes to your understanding of this memory trade. And I'll put all the time stamps down below. And then at the end of today's video, we're going to go on to our sponsored segment on BioMe Technologies, ticker symbol BM. This company just got uplisted from the OTC's to the NASDAQ capital market. I want to break down what they're working on and why you may want to be putting it on your radar. And as always folks, if you're the one taking the ultimate risk, you better be the one doing the ultimate frisk. Always do your own due diligence on all ideas presented. Okay, let's get right into it. So layer number one, the makers. This is the layer that everybody knows. So we'll go through it quickly. It starts with Micron. Micron makes the memory, the DRAM, and the ND chips that store data for every phone, laptop, and server on Earth. And it's one of only three companies in the world that can make high bandwidth memory. the stacked memory that sits directly next to the GPU inside every AI chip. No memory, no AI chip. It's that simple. And right now, Migrine is sold out of this stuff through the end of 2027. This shortage is ongoing, which means that Migrine has been able to increase their price over and over and over again. And if you look at what that has resulted in, well, last quarter revenue was $41.5 billion, up 346% year-over-year at an 85% gross margin. They guided $50 billion for the quarter they report on September 30th and HBM is again sold out through 2027. The stock right now trades at about seven times forward earnings. Now, full disclosure, this is a Zip Trader 25 pick. If you're a long-term follower, you know we've had many, many videos over the years calling this stock out at much, much lower prices. For example, here, here, here, here. I also made it a top pick this past January at $363. And we continue to be big fans of MU. Next in this top layer, we have SKH Heinix. Skhinx does the same thing Micron does. It makes Dram, NAND, and HBM, and it was the first company to get its HBM approved inside Nvidia's products. Think of it as Migron's biggest competitor. Keep in mind though that SKH Highix is the number one player in HBM, high bandwidth memory. They have a market share of about 50 to 55%. Samsung is the largest memory maker on Earth by volume, sheer volume, and memory in one division of a company. And of course, the company does a lot of other things, phones, TVs, laundry units, lots of stuff with chips in them. Now, it originally fell behind on HPM, but it's catching up fast. Okay, next you have layer two, storage. The big dog here is SanDisk, ticker symbol SNDK. This is the NAND business that Western Digital spun off last year. Now, if you don't know, NAND is flash memory, the storage inside your phone and inside every solid state drive. And SanDisk makes this stuff by the truckload for data centers. And in terms of results, SanDisk did 20.2 billion in revenue last fiscal year, up 175%. Data center revenue doubled in a single quarter. Earnings per share last quarter, $39. And the CEO said on the earnings call that they have four years of visibility on contracts. Very, very beautiful. Four years. At the August investor day, they guided doubledigit growth through 2030 and an 80% gross margin. The stock currently trades at about eight times forward earnings. Next, you have Seagate, ticker symbol STX. This company is a hard drive player. Seagate makes the spinning hard drives that hold the bulk of the world's data, the cheap, high-capacity storage a data center uses for everything it doesn't need instantly. Only two companies still make them at scale. Everybody thought hard drives were dead. However, AI generates so much data that the hyperscalers are buying every high-capacity drive that the makers can build. Now, the other maker of this is Western Digital, WDC. Same business as Seagate hard drives for data centers. All of their 2026 production is sold out on multi-year purchase agreements. This company trades about 19 times earnings. And then last, we have Kyokia, the Japanese ND maker, up 380% in Tokyo. They don't have a clean US ticker, so I'm just saying this for your information, but Kyoio is essentially the old Toshiba memory division. It makes the same flash chips that SanDisk does, and the two of them actually share factories in Japan. Perhaps Kioxia finds its way onto American markets soon. But just be aware of that because you are going to see it talked about as you do your own memory research. Okay, next layer number three, the tools. Now, people always call me a tool, but that's not what I'm talking about here. To make more memory, you need more machines. And HBM needs about three times the equipment per gigabyte as regular memory does because you're stacking the chips vertically and every layer has to be etched, deposited, and inspected. Now, the first one to know here is Lamb Research, ticker symbol LRCX. Lamb makes the machines that memory fabs use to build the chip layer by layer. Its tools carve the microscopic holes and channels into the silicon and fill them back in, which is literally how you stack memory hundreds of layers tall. Micron, Samsung, and SKHENX all buy from LAM. You need to understand these are all very connected. So money going in one end is going through all of them. 46% of LAM systems is memory split evenly between DRAM and NAN. Fiscal revenue was $23.2 billion up 26%. EPS up 39%. And here's the part that matters. So their September quarter guide was $8.1 billion. This was almost a billion above what Wall Street expected. And they raised the industry spending forecast for the year by $10 billion. Next we have Applied Materials AAT. This is another company that we talked about again and again on the channel over the past years, but applied as the biggest chip equipment company in the world. It makes the machines for almost every step of turning a blank silicon wafer into a working chip. And it sells to the memory makers and the logic makers alike. Their HBM specific revenue went from almost nothing to about 1.5 billion beautiful dollars in a year and management is targeting three billion. Next, you have KLA. Ticker symbol KLAC. This is the inspection monopoly. makes the inspection machines that look at every wafer for defects. Every time I buy my Fritos, if one is cracked, I'm upset. My day is ruined. Can you imagine how much more upset some of these hyperscalers would be if all their chips were broken? Much more upset. As chips get more complex, there are more places for a defect to hide. And KA is the company the whole industry uses to find them. And this leads us to layer four, which is test and packaging. A stacked memory chip takes up to 10 times the testing of a normal chip. Because if one layer in a 12 high stack is bad, well, the whole part is scrap. So, HBM stacks pay what you could think of as a tax to the test and packaging companies. One company in this is form factor. Form factors markers test every single layer before it chips. And the thing that does the testing is what's called a probe card. Revenue is up 18% but net income is up 163% which tells you the mix is shifting to the high margin HBM work. And as HBM becomes more and more of the market and they grow more and more into this, that means their margin should also grow. Then you have Pterodine, ticker symbol TER. Pterodine makes the testing machines the equipment a finished chip gets plugged into to prove it works before it leaves the factory. And of course, every chip on Earth needs to get tested. Stacked memory gets tested far more though. Their DRAM test revenue went from $80 million to $350 million. And they just launched a tester built specifically for HBM. The next one is Bessie, ticker symbol BE SI. Bessie makes the machines that physically stack and bond memory chips on top of each other. Old memory was just one chip, just one. But HBM is 12 chips fused into one tower. And Bessie's machines do the fusing. And HBM4 increasingly can't be built without this type of bonding, which means the addressable market is going to go upy up. And Bessie is the leader in this. Revenue up 28% but new orders up 104%. And in this business, orders come a year or two before the revenue. So keep that in mind. Next we have AMCore, ticker symbol AMKR, advanced packaging player. When a chip comes out of the fab, it's a bare piece of silicon. Amcor is the contractor that puts it in its case, wires it up, and stacks it with other chips so it can be soldered onto a board. Chip makers hire Amcore when they don't want to do that part themselves. Next, you have air test systems, ticker symbol AER. Air makes burn-in systems machines that run chips hot for hours to weed out the ones that would fail early in the field. It's a tiny company trying to sell that to AI chip and memory makers which has resulted in the stock doing a massive rally rally to up some 289%. But revenue is down 15%. There's no earnings. This is a very speculative idea right now. Next you have layer 5 the interface and the IP. You could think of these as the toll booths. Now Rambus makes the chip that sits on data center modules and keeps that data clean at AI speeds and it owns the underlying memory patent. So the makers pay it a royalty on the memory they sell. It gets paid twice on the same chip. Next, you have Astera Lab, ticker symbol ALAB. Astera makes the small chips that connect everything inside an AI server, the GPUs, the processors, and the memory, so data moves fast enough to keep up. Astera makes the connectivity chips inside AI racks. And their LEO product line is CXL memory expansion, which is how you attach more memory to a GPU than the GPU can actually physically hold. They said they'll ship LEO in volume to two US hyperscalers in 2027. Revenue is already up 98%, net income up 269%. Next, we have Penguin Solutions, ticker symbol PE NG. Penguin, which used to be called Smart Global, builds the memory modules, the sticks of memory that plug into a server, and it also designs and runs AI computing systems for companies that don't want to build their own. Layer six, the rappers. For starters, we have Dell. Dell builds the servers that all of this memory goes into, and they pass the memory cost straight through to the customer with a margin on top. Revenue is up 49%, earnings up 150%, and the stock is at an all-time high, but it's only at about 19 forward earnings. Then you have the Roundill Memory ETF, ticker symbol DRAM. This is very, very popular. If you look at what's inside it, Samsung is about 19%, SKH 17%, Micron 16%, and about 38% or so is in Treasury bills because it gets Korean exposures through swaps. Next, you have HPMX. This is a brand new ETF from June that owns the whole stack, makers plus equipment plus packaging. It's down some 12% since launch because it launched 3 weeks before the June top. Finally, layer 7, the small ones. This one's going to be the most popular section. Now, this layer has a lot of opportunity, but it's also one of the most dangerous. Small cap stocks can go up two, three, 400% on a narrative and then give back 70% in a matter of weeks. We'll start with Silicon Motion, ticker symbol SIM O. This is the cleanest one, so it goes first. They're the number one maker of NAND controllers, the chip every SSD needs between the memory and the computer. When SanDisk's revenue is up 175%, the controller guy definitely gets paid, too. Revenue is up 71% 18 times. 18 times forward earnings and it pays a dividend. Then you have Kohu, ticker symbol CO HU. Kohoo makes the machines that move chips through testing and now the systems that inspect HBM stacks for defects. Orders are up some 57% and they just raised their fullear outlook to 35% growth. Then you have Ecor, ticker symbol ICR, and Ultra Clean, ticker symbol UCT. Same idea, so I'll put them together, but these are the plumbers. A lamb or applied machine is full of pipes and valves that deliver gases and chemicals. And these two built that plumbing. Nobody knows their names, but they're inside every tool on layer three that we talked about earlier. If you believe in the tools layer, these are basically the tools with twice the beta. Then you have Photronics, sticker symbol PLAB. Now, I do owe you a receipt here. I put Photronics in the March 26 video at $40. It's at 29. So, I was early and so far I was wrong. And here's why I still like it. Photonix makes photo masks. The glass plates that carry the circuit pattern for every chip and the high-end mask for AI chips at HBM are their fastest growing piece. Half a billion in cash on a $ 1.7 billion company. 10 times trailing earnings. And the Texas facility I told you about back in March is now finally shipping. 10 times earnings with half a billion in cash in a sector where everything else is like 20 to 50 times than you have ever spent ticker symbol Mr. AM. This is the only pure play on MRAM, a memory that keeps its data when the power goes off. very very important industrial aerospace and now data center applications for this type of memory and in May they signed a $40 million defense contract and the stock spiked on that news. Then you have Netlist ticker symbol NLST. This is the wildest one on the map here. Net list owns memory patents. Samsung just settled with them for up to $898 million. They have a $445 million verdict against Micron under appeal and last week a court killed five of their patents. This is not really a business. It's more of a litigation portfolio, but it is one to know about because it comes up again and again and again. Their business is basically having patents and then suing people who infringe, so to speak, on their patents. Then you have GSI Technology, ticker symbol GSIT. GSI makes a chip that does the computing inside the memory instead of shipping the data to a GPU. This company has enough cash for years of runway and the next product is in 2027. If the memory trade keeps going, as long as we think it will and as long as projections are saying, well, this is the kind of name that will eventually get a second run. And then the lottery ticket at Omera, ticker symbol ATOM, it invented a thin engineered layer that makes transistors perform better, and its whole business is getting chip makers to pay to use it. This year, they said they're in talks with large memory makers for next generation DRAM and HPM, and that deals could be signed in 2026, quote unquote. Trailing revenue, $233,000. That's 233K, not million, a,000. This is the type of play where if they do indeed sign a memory maker, it could go up like 5 to 10x. If not, it could drift down to zero. So, this is a lottery ticket play. And again, if you're somebody that likes to play momentum as a trader, this is a great idea to start looking at the PR and watching the press releases and seeing what's going on. But when it comes down to long-term buy and hold, you well, you want to go with the stronger players in the stack. Okay. So, where is the value here? Obviously, you could find the best company in the world, but if you overpay for it, well, you could have a problem on your hands. But at the same time, just because a stock has gone up massively does not mean it's a much worse deal than before, in fact, it might even be a better deal. How could that be, Charlie? Well, thank you for asking. Well, the reason is because if the stock price went up, but the earnings went up faster or the overall proof of concept went up faster, and longterm, that's going to result in more earnings and more revenue and more margin expansion, well, you might actually get a better bang for your buck than you did at lower prices. The company's way more proven now and you're paying a lot less per dollar of being proven. So, let's put this into a table. Now, here on this table, you have every stock on the map we covered. Two numbers for each price to next year's earnings per share, what you pay for a dollar of profit, and price to revenue per share, what you pay for a dollar of sales. Let's start with earnings. So, the stocks that everyone says already ran are actually the three cheapest stocks on the map. SKH Highix is at four times, Micron at seven, SanDisk at eight. Everything below them in the chain cost two to five times more per dollar of earnings. The suppliers are priced richer than the customers they sell to. The companies that are raising prices 60% a quarter are the cheapest names on the map. Micron is still a top Zip Trader 25 pick. It's been a stock that we've covered on the channel again and again. And the entire time we've covered it, people have said it's way too expensive and it will never run anymore. Even I at certain points was like, you know what, let's just let it calm down a little bit. However, the fact of the matter is that it's not expensive by any real terms. Even if the memory cycle cools down 30, 40, 50% and it happens a lot earlier than expected, this company still isn't crazily valued. Then in terms of the middle, you have 14 to 26, Silicon Motion, Dell, Amcore, Western Digital, Seagate, Applied. These are in the fair category. Then you have the tools and the test layer at 30 to 37 times form factor, Lamb, KLA, CHOU, Bessie, Pterodine. On price, that layer is about 30 to 40% off its highs. But on earnings, it's the most expensive layer on the map. Now, let's flip it over to revenue per share. Now all of a sudden the cheap names change. Ultra clean one and a half time sales. Amcore Penguin Photronics. Ecore Dell all around too. Why is this? Well, thin margins. Dell passes the memory cost straight through with a small markup. Eore and Ultra Clean build on a contract margin. So a dollar of their revenue is worth less than a dollar of say Micron. And even on sales, Micron and SanDisk at 12 to 13 times are cheaper than the toolmakers at 17 to 22. So we have the same conclusion with the second method. If you're analyzing based on earnings or you're analyzing based on revenue, well, the makers are still the best buys. Now, the bears will say, Charlie, are you crazy? Seven times on Micron is seven times peak earnings. When the cycle turns, the earnings collapse and the multiple doubles. And haven't you heard? I mean, Michael Bur is bearish again. And it's Monday. He usually is only bearish on a Tuesday. Well, fine. Let's say that memory prices fall 40% from here. And Micron's earnings get cut in half. Seven times becomes 14. 14 is still cheaper than Lamb, KLA, Pterodine, Bessie, and Form Factor. So, anyways, my conclusion for the long-term holder who's trying to buy good assets at good prices over time. My opinion on this is that the best buys in this memory stack are still the top dog makers. The smaller ones that are traded at much higher valuations, I think, could also be good buys. However, much better arguments can be made for shorter term trades, especially around catalysts and momentum specifically. Of course, none of this is financial advice and this is just my opinion, but these are things to consider. Anyways, let us know your favorite ideas down below. And it's time to move on to our sponsored segment. Okay, now it's time for today's sponsored segment on Biom Technology, ticker symbol BM on the NASDAQ. Bio develops, manufactures, and sells alo graphs made from donated paranatal tissue. That means placental and umbilical cord tissue. Surgeons place these graphs at the surgical site to support healing. Wound care clinicians use them on chronic wounds like diabetic foot ulcers. So, what's the market gap? Well, let's start with the size of the problem. Over 40 million major surgical procedures happen in the US every year. Roughly one in nine Americans had a surgical procedure in the past year. Every one of those surgeries needs to heal and healing goes wrong more often than people think. Infections and postsurgical complications cost the US health system an estimated $30 billion plus every year. Surgical sight infections alone make up about 30% of that cost. So that's where perinatal tissue comes in. Amniotic membrane has natural properties that help regulate inflammation and limit scarring and adhesion at the healing site. Placing a graft during a surgery is meant to give the body a better environment to heal in which means fewer complications, less scar tissue and a faster return to normal activity. Management sizes the US soft tissue alligraph opportunity at roughly $26 billion. That number is their own estimate. So treat it as a framing number. It spans chronic wound care, orthopedics, and sports medicine, foot and ankle, spine, urology, and and colorctyl. Wound care is the biggest slice by far. The surgical slices are where Biom is pushing hardest right now. Now, what's the business model, Charlie? Well, Biom makes its products using three processing technologies. Bio Retain produces dry shelf stable graphs. Stereot produces hydrated graphs that also sit in at room temperature. Cryotech produces crypto preserved graphs that ship and store frozen together. Those give Biom more than 10 products across the two sides of the business. The physician office and wound side runs on the Vendage and American Omnon product lines. Those are dehydrated amniotic membrane grafts used on chronic wounds like diabetic foot ulcers and Venus leg ulcers. The hospital and surgical side runs on the Neoxx and Clerics product lines. This is the part of the business that changed the company. In January 2026, Biomqu acquired the surgical and wound care assets of Biotissue Holdings. That deal brought over the Neox and Clerics brands, a license to the Cryotech and Steritech Technologies, Biotissues direct sales reps and independent sales agents and Bioissues Group purchasing organization and hospital network contracts. Now, here's why that matters. Before the deal, Biom was just a wound care company selling mostly into physician offices dependent on Medicare pricing and moving product through a single distributor. But after the deal, it is a surgical focused company selling into hospitals and surgery centers with commercial payer exposure on top of Medicare and its own direct salesforce. In the hospital setting, the graph gets purchased as part of the procedure and built under the procedure code. The company says the business has flipped from 100% product based reimbursement to roughly 87% procedure-based. The commercial engine today is 60 plus reps split between direct employees and independent agents. Bio stem holds four GO contracts that it says cover about twothirds of US hospital beds. Those contracts get the product on the approved list. From there, the playbook is land and expand. Find a physician champion at the hospital, win one use case, then spread into adjacent procedures and departments. Now, what about the clinical evidence? Well, Biom Technologies and products are backed by more than 400 publications and more than 1.2 million product applications. On the surgical side alone, there are more than 90 publications the sales teams could put in front of a hospital value analysis committee. On the clinical trial front, Bio's randomized diabetic foot ulcer trial for the bio retain amniotic membrane was listed as completed on clinical trials.gov in August of 2026. The company also expects topline data from its Venus leg ulcer study in the second half of 2026. The last piece here is manufacturing. Bio's Pompano Beach facility is accredited by the American Association of Tissue Banks and runs under current good tissue practices and good manufacturing practices. The company says the facility has roughly four times the capacity it uses today. Right now, the acquired Neox and Clerics products are still made by Biioissue under a cost plus supply agreement. Biom is targeting the first half of 2027 to bring that manufacturing in house, which removes the markup it pays today. On the intellectual property side, the company issued eight new US design patents in the second quarter of 2026 covering finest rated placental alligraph technology. Now, let's talk about some of the risks. So, this is a micro cap that just landed on the NASDAQ a month ago. It trades thin, it moves fast, and a single press release can swing it hard in either direction. Second, integration and execution. So, Boston is running a sales force it inherited, transferring GO contracts over to its own paper and planning to move the manufacturing of its most important products into its own facility by the first half of 2027. Every one of those steps has a long way to go in order for the story to work. Thirdly, the headline thesis is still ahead of it. The hospital ramp, the diabetic foot ulcer, and Venus leg ulcer data, and the catalyzed launch are all expected, not delivered. And this company spends more than it takes in right now. So, it will likely, like most small caps, raise capital again, which means long-term dilution for shareholders. So keep all those things in mind. But the story with BIOS stem is that it is a paranatal tissue company that rebuilt itself in the first half of 2026. It bought a surgical product line and a national hospital sales force, shifted its revenue base from physician offices to hospitals, and moved its stock to the NASDAQ. The next 12 months are about proving that the new model scales more hospital accounts, published trial data, a 510K product launch, and in-house manufacturing in 2027. It is early, it is small, and the execution has to show up. This is a high-risk high-risisk company, but it is also one that you may want to start your due diligence on and put on your radar. Anyways, have a great rest of your day, folks.