These Memory Stocks Will Print Millionaires (Apple CEO Just Confirmed It)

A memory shortage sending shock waves through the entire market. Apple the latest stock to announce a major hit from what's going on in memory. What does that mean for all of these memory stocks? Joining us today is Louis Nathalier with Growth Investor. Louie, I'm so excited to talk to you about these names today because these are some of the hottest stocks in the market. These are the names we talked about um a half a year ago, maybe a year ago that were doing really well. They've grown even more since then. And the question that a lot of investors have is will this growth story continue? So we're going to get into four major players here in just a minute. But let's start out first with that news from Apple Louie. What does that this signal to the market with what Apple came out saying just this week? >> Well, because of the shortage of memory, Apple has to raise the prices of its products. That sent shock waves around the industry and obviously it helped the memory stocks continue to rally. They've been the market leaders here and they're all at new highs right now. So this is exciting. I mean there's a shortage of memory. One of the reasons a lot of people like the memory related stocks is especially Micron is uh it has historically traded at a fairly low priced earnings ratio cuz it's a cyclical business but not anymore. It's gone nuts. >> It's gone nuts is a great way to put it. There is so much demand and we're going to get into that demand and what it means for all of these major players in memory. I first want to talk about those shock waves, the ripple effect, the shortage in memory and what that could mean for many different industries. So we've seen it show up in iPhone. That's something that affects millions of people who are iPhone users and who use Apple products. But that they're not the only ones impacted. What are some other industries that could be hit with some price hikes potentially from the expense and the shortage in the memory sector? >> Well, anyone who has solid state drives in their computers are going to have to raise the price of the drives. That's why Seagate, Western Digital, and SanDisk are doing so well. Micron's a little different. They compete with Samson on on the RAM memory and you know Samson almost went on strike and they had agree to give their workers a lot of their profits. This is a global phenomena that there's everybody wants the fast uh memory and whoever comes up with the chips has pricing power now. So this is just wonderful for Micron. They will be announcing at least 262% sales growth here in the upcoming days. Last I looked 936% earnings growth. Yeah, Micron is the first stock that we are going to talk about in this video today because it's the one that comes to mind for everyone. But the biggest question here with Micron is how much can this growth story continue? And you just mentioned some impressive stats already. But there's there's so many people tracking the tremendous growth that just continues for Micron. It'll go up 20% and then another 20% the next day or it just continues to see a lot of movement in this dog. Can that movement continue forever? That is the question, Louie. Well, nothing continues forever, but it's going to continue for 2 and 1/2, 3 years because that's the order backlog for the data centers. Now, Micron's based in Boise, a beautiful place. They're building new plants in America. So, Trump's really happy with them and, you know, Trump uh was disclosed that Trump was buying their stock uh recently and they're a national treasure. You know, that's it was became the next trillion dollar company. And uh because memoryy's been historically volatile, it's always been a low P ratio stock. But so its P ratio is now just catching up with all the other stocks. So it's it's over 10 now and rising. And um but if we look at forecast earnings, his P ratio is slightly below 10. >> Yeah, there's a lot of growth here. I think what you mentioned about the president disclosing that he's buying the stock, I feel like everyone is buying MU right now. We're also seeing those leveraged ETFs showing up for MU, people trading on the moves of MU because it's moving so much right now. uh the stock is up over 800% in a year. So the the growth story is massive. Let's talk about the backlogs and the demand that's coming for MU and what they provide. Is it all just from AI data centers or is it the cumulative of all of these different industries that need the kind of memory that they're working on? >> It's cumulative, but because Micron has the fastest memory chips, they're the first choice. Okay, Samsung is behind them. Obviously, Samsung makes wonderful memory chips we can put in computers and things, but the memory chips the data centers want come from Micron. When you have pricing power, you have a huge operating margins. And I personally think Micron's a monopoly, even though they compete with Samsung. >> Yeah, there's a lot of names you're talking about today. That's a a bold statement to say that they're kind of in a whole another league when it comes to memory, especially with the AI data center buildout. And Louie, I know that you have deeply dove into the AI data center buildout and specifically some gaps in uh the chat GPT math that goes behind where the money is truly flowing in this AI buildout. And you have a fascinating special report out right now. You have a special offer for our market viewers today to check out this special report from Louiesie and his team at growth investor. Again, Louis is all about finding growth and so much of that is in the AI story in big tech right now. He's got some unique names that are all tremendous growth stocks on this special report. So, scan the QR code or click the link in the description to get that special offer for that report from Louisie and his team at Growth Investor. Right now, Louie, I want to continue the conversation a little bit more on MU. And that is just to talk about the growth that we're seeing in the numbers, the earnings. It's absolutely there to back up the growth we're seeing in the stock. But the analysts are are lagging on upgrading uh their price targets for this one. Even some of the latest revisions are showing price targets that are below where the stock is trading today. So, do you think that this valuation could be flying too high and out of control with the price that we're seeing on the stock right now? Or are analysts really truly lagging behind on this one? I realize that Micron looks like Ichthus and is looks like it's flying too close to the sun, but the analyst community has always been notoriously behind Micron and other data center related stocks. The analyst community gets a lot of grief if they overestimate. So, they're always notoriously underestimating. But the the recent analyst revisions and just in the last seven days is very positive. That's usually very indicative we're going to have a huge earning surprise. and Micron had a massive surprise in the previous quarter. So I have this eight factor fundamental model that ranks stocks you know on sales growth, margin expansion, earning stability, earnings momentum. Analyst earnings revisions are important, surprises are important and the other thing uh that espec especially it's merged this year is they have to uh uh give guidance on their on their order backlog. A lot of these stocks are their orders are more impressive than their sales. And so here's a stock that's going to have at least 262% sales growth and but I their order backlog should be growing even faster. And that's why the data center stocks are so hot is because it's over 50% of the construction in America. There's been shortages of other things other than memory. Everyone involved in the data center buildout is prospering. >> Yeah, the data center growth story is absolutely still very much happening. It's underway right now. The construction is happening all over the country and like you mentioned already that shows up in MU's earnings report. They had a tremendous earning report last quarter and I don't want to move on to the next stock until we talk about Micron's earnings report coming up just next week. What do you anticipate happening there and how the stock might react after that earnings report comes out? >> It's the grand finale for this earnings announcement season. It's the best. It's even better than Nvidia, better than Bloom Energy. Uh it's going to be wonderful. It's like the fireworks at the end of the end of the party. It's a huge weight in my portfolio. Very dependent upon this stock. >> Right. You were recommending this one to your newsletter subscribers a long time ago. Right. >> Yeah. You know, this is a wonderful year. Growth investors up um pushing 40% year to date uh on average gains. Uh we've doubled down on AI. We've had even more data center related stocks. It's broned out according to our modeling. And it's just wonderful. You know, what makes a stock safe is money flow. And when money's pouring into a stock, it's just inherently a safe stock. And I realize that these stocks will eventually correct. And Micron doesn't always go up after its earnings. Okay? So, it likes to go up in anticipation of its earnings. Kind of like Nvidia. But, uh, it's still wonderful. They tell everybody, "Please pinch yourself. You're not dreaming. Just hang on. Enjoy the ride." >> Good advice. Well, let's move on to that next name in this memory story. And this is another one that's also on your growth investor uh list. Yeah, that's Seagate technology and that's uh the flash drives obviously and uh flash memory and the data centers need tons of that and obviously you know I have it in my laptops and you can get a a flash stick from Seagate as well but uh solid state drives are a big deal. Uh they still make the traditional drives that spin. Some some places still buy those drives but uh they're cheaper but increasing everything's going solid state. Yeah, this is one of those things that we we started this video out talking about what this means for the consumer and how expensive some products are getting. Well, memory and hard drives from Seagate are one of those things. Those external hard drives are very big with any video professional often and the cost of those has certainly gone up and I think that we're going to continue to see that with that demand. So, let's talk about that. These these companies, I'm sure Micron as well, but Seagate in particular has a very direct consumer business model. This is something they've been doing for a long time. It's been around for a while as a direct to consumer hardware storage and increased storage. But how is this AI data center part of their story really kind of changing that business model? >> Well, they're known as being more reliable and you might know that uh from uh editing all the videos. Seagates uh uh has a very good reputation for being reliable and bulletproof. So that's what you want in a data center. You can't have anything shut down. So their data center business is awesome. uh Seagates just their sales earnings are stunning and it's my favorite u one in uh for solid state memory. >> Yeah. And it's got it's a favorite of many analysts too. We talked about analysts being behind on MU and at consensus it certainly looks like analysts are behind on this one too, but you look at some of the those trends and some of those higher price targets and they're still just around where the stock is trading today. Does that concern you at all? >> No, but I will admit that Seagate has a higher multiple. Okay. Um, but again, uh, solid state demands a higher multiple than than memory, but I think that's going to change. Uh, so I just think it's the industry leader. It's got the market share and, um, so I'm I'm just riding as long as it lasts. But memory is the latest bottleneck and that's why the prices are are going up. >> Yeah. Well, you mentioned of ride it while you can. That absolutely applies to the investors who already bought into some of these memory stocks. If you're already owning Seagate, it makes sense to just continue to ride the increases that we're seeing here. But a couple of questions as far as actionable advice for investors in the retail community. And the first one I want to talk to are retail investors who missed this memory rise, who didn't get in 6 months ago and are looking at this incredible increases the stock is already seen up over 700% in one year and going, "How could I possibly buy into this stock right now?" Do you think this is still a buy for people who are new to enter this market? >> So yeah, I'm in Reno. We have a billion half dollar family office here and we get money to invest all the time and I do wait for pullbacks to buy even on my stocks. So basically I uh sell when I rejigger portfolios I sell in the strength. I buy in dips. Every stock has a natural oscillation. So, I would have all these memory stocks on on like a an alert list. And as soon as you see a a daily pullback, that's your window to buy. >> Yeah. That that window to buy could have been uh earlier last week when it was down around $816 and now we're up over $1,000 in the span of a few days. So, that kind of volatility with this names, those kind of huge jumps that we're seeing is what has a lot of investors kind of pausing sometimes too of do I want to get involved in a stock that moves this much this quickly? So, what kind of a pullback, what kind of a move to the downside are you looking at as a a buy entry for yourself? >> The third third retracement is good. It's just kind of human nature. So, if a stock goes up 12%, expect about a 4% pullback. And um uh but I'm usually buying on daily dips. Uh you know, I'm glad you mentioned that correction the AI stocks had. Um it was uh not that long ago. It was on a Friday and then uh we on a Tuesday and a a Wednesday we retested the those lows and it was over in four trading days and then now we're back and then the memory stocks are back in new highs. You're in a very powerful market here and I do think you shouldn't wait too long especially because Micron's about to announce and of course you know there's other news out there like you know oil prices are now lower than they were before the war started. So the the ships are going through the straight of Hermuz and uh even on inflation I know we had this FOMC statement that rattled a lot of people but the core rate of inflation on CPI and PPI were lower than expected. The reason AI is so important is it creates this productivity boom. We're going to be at 5 to 6% GDP growth in the third quarter. And that productivity boom is not inflationary. We've got a strong dollar especially against the Japanese yen. Everything we import is going to get cheaper because the dollar is so strong. And the US is the economic u engine of the world and everybody that wants to be successful has to follow what we're doing. The period we're in now is unbelievable. This is the best market in 30 years, you know, and I here I am up 40 for the year and I expect to be up another 30 to 40%. And that's conservative cuz my average stock has over 100% earnings growth. So I'm still planning PE compression. So this is wonderful and I I just want everybody to to jump on board, enjoy the ride and growth investors a great place to start. >> Yeah. If you want to check out growth investor and not only those special reports that Louis has on the whole AI story, he's looking for those tremendous growth stocks and that's what you'll find in those special reports. You can also just check out the growth investor newsletter with this special offer and see what Louis system is all about. Scan the QR code or click the link in the description to get that special offer for our viewers today. Okay, Lou, we've got two other names to talk about and we can kind of talk about them side by side because we've already mentioned both of them. The first two companies you talked about, MU and Seagate, are both personally in your growth investor portfolio. These last two names are not, but they're both huge winners in the memory story 2, and that's Western Digital and SanDisk. What's your take on both of these names? Is there one that's better than the other? What sets them apart? >> I would pick SanDisk over Western Digital, but this is like picking which of your kids you like the most. Okay. And you want >> You can't do that. >> Yeah. You want to pit your kids against each other so they suck up to their mom, you know. And um you know, I would pick Sandesk O over Western Digital. It's analyst revisions, earning surprise history, margin expansion. You know, these stocks all score good, just not as good as Seagate and Micron. So, I I'm really splitting hairs. >> Yeah, that's a great analogy of trying to pick your favorite kid, which I as a mom of three, you cannot you cannot pick one. So, I think that's a great way to to to explain what's happening with this growth story. And just to expand on that a little bit more, um, oftentimes investors are looking for what's the biggest winner and you did kind of make a case for Micron as being the biggest winner and that it's in a league of its own with the the reliability and the speed of its memory. But when you're looking at all four of these names and the demand that we're seeing in these memory stocks, is there going to be one big winner or can they all win because the demand is that great? They're all winners right now, but the ones that make the fastest ships and are most reliable get the most orders. >> Yeah, they're all good stocks. Like you said, they all have the chance to continue to see the kind of demand that we've seen. And so that leads to another question that I've been holding thinking about for the investors who did get in earlier on some of these names, whether they got in a month ago, 3 months ago, or lucky enough to get in a year ago. What is your recommendation for those who do own these stocks and have seen these kinds of returns in their own portfolio? >> Well, when you look at our growth investor buy list, you'll notice the average stocks up well over 100%. I know under management they're up over 180%. And obviously there's one that's up over 5,000%, a few over a,000%. And people say, why are you still holding those stocks? And the answer is they still score good in stock grader. Okay? They still have the sales. They still have the earnings. They still have the margin expansion. They still have the positive balance revisions. They have a great surprise history. Uh that's what happens when you buy monopolies. You get rich finding monopolies. So, you know, Ron Baron, you know, he bet on Elon Musk and he made a lot of money here recently from SpaceX. I bet on Jensen Wong. I bet on Alex Karp of Palunteer and obviously Micron's the new trillion dollar company. You get rich by betting on these billionaires. >> Thank you so much for taking a look at some of these names. Again, the story here is huge and like you said, it's not over yet. Looking at potentially another three years of this continued AI data center demand for these memory stocks. So, it's an interesting case. I'd love to hear from our viewers in the comments. Are you worried about the cost of entry after such a giant rise? Or do you think these stocks still have a long runway ahead of them? I'd love to hear your thoughts in the comments. And if you are looking for other stocks in this AI story that still have quite a bit of runway ahead of them, make sure to check out this video. It's looking at more of those infrastructure names behind the AI buildout that are really benefiting most right now. You can check out that full interview