Everyone Thinks AI Is Over… I’m Buying These 4 Stocks

Every great bull market shakes people out before the next move. June showed up and showed out and even carried some into July and had a lot of investors thinking. Oh, we in a 20% draw down happening. Chips dropped more than 10%. Every great bull market has these type of situations and some of the greatest leaders of this one collapsed. Memory stocks collapsed. That should amuse SNDKs. Quantum stocks got destroyed and the media is screaming that money is rotating. Money is rotating out of AI and investors don't know what to do. But here's the problem. They're looking at price. You're not looking at the business. And those are two completely different things. Because with investing, we're panic selling. And when you think about that, you got companies like Micron that just reported one of the strongest quarters we've ever seen from an AI company. Let's think about it for a second. Revenue exploded, margins exploded, AI demand exploding, and even their guidance exploded. That tells me something very different than what the headlines are saying. So, I'mma attempt to calm y'all down a bit. I'm going to show you four companies I'm actually buying during this amazing pullback. And I'm not telling you to buy, but what I'm saying is when the market gives us a discount, we got to take at full advantage of it. And by the end of this video, you'll understand why I believe this dip could become one of the biggest buying opportunities of the second half of the year. And one of these companies isn't even American. Yet, it controls over half of most important AI markets on Earth. So, is AI over? I think it's just begun. It's your boy, the Wash Trapper, man. Make sure you like, subscribe, and share this video. Help us get over 2,000 likes, y'all, because well, that helps the channel grow and help us get in the algorithm just a little bit more. At the end of this, I want you to say which one you like the best. Let's go. Here's the big question. Trap. Did we miss AI? Trap. Is the AI trade over? Trap. Should I sell the companies that I own right now? Well, that's panic. That's people that's probably new to the market. And those are the people that I come to serve the most because that is exactly what Wall Street wants you to think. They want me to think. I refuse to let that happen on my watch. So, let's take a look at really what's happened before we get into the stocks because it's important that we build context around things because my goal is to educate and lay it out so in a way that you can understand. So, yes, June was rough. It's called June swoon for a reason, right? And not just for small companies, for the bigger technology leaders as well. Semiconductor sold off massively and we saw that, right? We saw Nvidia, we saw that. We saw the memory names get cobbled when we see the SNDKs, the Mus after such a monster rally. Quantum stocks got crushed after hearing Trump, you know, make the deal. And social media was full of people, you know, saying the AI bubble popped and the AI trade is over and you know, again, money is rotating and the winners are done. And so that caused people to panic sell. And I'm not talking about traders because I'm not going to lie, even in that situation, like maybe like six of my stop losses hit and I had to take that because that's part of the game. But as an investor, from an investor perspective, this is the perfect opportunity for me because some of these stocks even hit the 200 day moving average. And that, my friends, is amazing. Now, as a new investor, again, those headlines can scare you because when you see your stocks down 10%, 15%, 20%. Well, your brain starts asking a question. What if the noise is right? What what if I'm wrong? Do do I even know what I'm doing here? And that's why I want you to calm down. I want you to be patient with yourself and I want you to help you to understand that you bought these companies for a reason. So, let's talk about the market psychology for a second. Here's the first lesson I want you to understand, right? Just just hear me out before we get to the companies. The stock market and the business, they're not the same thing, family. That's right. The stock market and the business are two completely different things. Now, when the business does well, the stocks typically go up, but any type of news can make the markets fall off. And so, a stock price tells you what people feel about a company today. The business tells you what the company is becoming over the next decade. And those are two completely different conversations. Sometime they move together, sometimes they don't. And trappers like us, well, we learn difference between the two because if you confuse price with business, you'll start selling great companies at the exact wrong time. And that is truly how we deplete our wealth instead of growing our wealth. And then this thing happened called rebalancing. And so now we think about another event, right? We hear about investors and we hear people talk about reinvesting and rebalancing, but big money doesn't buy your stocks. They buy and manage portfolios, your 401k, your retirements, your annuities. Some people who in family offices, right? So when one sector runs too much, they start to trim it. They start to take profits, not because they hate it, but because they have rules and they can't be overbalanced. And imagine if you had 20% of your money in AI, right? Just just hear me for a second. And AI rallies so much that now it becomes 35%. Well, now you're what's called overweight that sector. So what do you do? You have to sell something. You have to take some profits and you have to move that money either somewhere else or you go in cash. And that is what's called rebalancing. It doesn't mean that AI is broken down. It just means that the portfolio got too large and they don't want too much exposure. So that's what's called risk on and risk off. There's a huge difference in that. Those are some of the mechanics. And so here's the question that I want to present to you when I ask you this. If AI was actually slowing down, I'd understand the selling. I understand the massive going. I understand the pivot and I see why people keep comparing this to 1999 when in 1999 like those companies weren't making money in the do bubble. These companies are making handover fist. What if I told you the business were actually getting better while the stocks were getting cheaper. Now that's exactly what happened right in Micron prove that just just a case in point. Let's just understand this about Micron. Before I get into the stocks again, I want you to understand the context around what's happening here. Micron just expose the truth questions that everyone has been asking. Was AI demand actually slowing? And the answer is no. How do we know that? Because they had margins of 85%. Bestin class profits and revenues increased by 346% year-over-year. Bestin class. Everybody was watching the micron unit. Everybody was watching those micron earnings because memory tells you whether AI is still expanding because if memory has a lot of demand then the rest of AI has demand because memory is how AI actually speeds up. So think about AI like building a city. GPUs are the buildings. Memory is the electricity inside of the building and the more AI grows or the more memory it needs. So, Micron didn't just beat expectations, they crushed them. The revenue exploded, the margins exploded. And the thing, the high bandwidth memory, well, memory keeps selling faster and faster than they can produce. And that's not what slowing industries look like. That's what explosive demand looks like. So, everybody talks about Nvidia. Everybody talks about GPUs, but here's what most investors don't understand, right? A GPU without memory is like a Ferrari with no gas. It it's it's the engine may be incredible, but it it can't move. And memory constantly needs and feeds information into the GPU. And the smaller AI becomes, the bigger the models become. And the bigger the models become, the more memory they consume. That's why Micron's earnings matter. It weren't just telling us about Micron. Hear me here. They were telling us about the entire AI economy. Because everybody knows Nvidia makes chips, but that's not why it's worth trillions of dollars. Nvidia isn't selling chips anymore. They're selling operating systems for artificial intelligence. Now, think about Microsoft. Now, Windows became valuable because everybody built software on Windows. Apple became valuable because everybody build apps on iOS. And this is why the first kind we'll talk about is Nvidia where over six million developers built on their software CUDA. Universities, startups, Fortune 500 companies. Once software stacks on CUDA, it can't switch. It's too expensive. And then everybody focuses on GPUs and that's old thinking. And then Nvidia becomes a full AI infrastructure. They sell Blackwell, they sell GPUs, they sell Spectrum, they spec uh Infiniban, the entire AI factory. Then they spell the CUDA software, the Omniverse. Then they have the AI enterprise subscription. They're no longer saying here's a chip. They're saying here's your entire AI data center because they sell whole racks and that's what average selling prices continue to climb. That's why margins stay elite. That's why customers keep spending. And then we not even talking about robotics. But here's the thing I want to tell you. The thing about Nvidia is the stock went all the way down to its 200 day moving average. I could not pass it up. It's why everybody thinks NB Nvidia wins if chat GPT wins. Wrong. Nvidia wins if human or robots win. If autonomous vehicles win, when the warehouse becomes autonomous, when an industry automation accelerates because every physical AI machine needs a brain and a brain is increasingly Nvidia. Let's talk about valuation. And the reason why I love buying this pullback, it wasn't just because of the chart. It was because demand is accelerating. Last quarter, revenue increased by 80 billion. Dat revenue remained dominant. Blackwell domain outpace supply management increased forward guiding and the biggest cloud providers are still using Nvidia and the business is stronger. The stock is simply cooling off. That's a different conversation. And again, the stock hit a 200 day moving average. It's the king of AI. I couldn't let that deal pass me by. I don't know about you, maybe you don't like deals, but I do. Let's go to the second stock I want to talk about, Broadcom. is is real special because most investors think Broadcom competes with Nvidia and that's not really true. Broadcom is building the future after the GPUs. And here's why. Right now, Google, Meta, Open AI, Amazon, listen to me here, they buy thousands of Nvidia GPUs and that gets expensive eventually, even if you're a trillion dollar company. So these companies start asking what if we built chips designed specifically for our own workloads and that's where Broadcom comes in. Broadcom designs custom AI accelerators called ASIC. They're optimized for customerspecific infrastructure. So chips aren't just replacing Nvidia. They're designed to do certain jobs extremely well, often better than what Nvidia can do. So think of Broadcom as the custom home builder. Nvidia builds the custom luxury econ. I mean, Nvidia builds the the condos and Broadcom, well, they build the mansions. That's why Wall Street is excited. Every trillion dollar company wants its own AI stack and Broadcom gets paid to build it. They only have that's only half of the business. Once those chips exist, then they communicate. Imagine a 100,000 AI chips. If they can't exchange information instantly, then the AI cluster becomes inefficient. Well, Broadcom gets paid twice because now they build a network silicon. switching ships and connectivity all at once. So the bigger the cluster, the more valuable Broadcom becomes, their AI revenue grows, it reflects supply and demand and now they're betting on Broadcom to win. The thing is Broadcom don't need to win. They just need the AI race to keep going. They don't need to beat Nvidia. They just need you to keep wanting custom chips. So it's the second company I'm buying. Let's talk about the third company I'm buying. Arista Networks. Now this one has been a sweetie for a while. Most people misunderstand this one. I think it's one of the most misunderstood companies in the AI trade because they don't build GPUs, they don't build memory, they don't build servers. So what do they do and why do I like them? Well, let's talk about it. Let's walk through it. Imagine building the world's fastest city. Now imagine every road only has one lane. Traffic becomes a bottleneck and AI without networking is that road. So inside modern AI data centers are tens of thousands of GPUs needs to exchange information continuously and the communication has to happen extremely high and extremely fast. That is Arista problem solving. They build Ethernet systems and every AI cluster needs that to connect. So think of Nvidia as the brain, Arista becomes the nervous system. The smarter the brain becomes, the faster the nervous system must be. And here's the key. Every time Microsoft, Amazon, Meta or Google or Oracle order another massive GPU cluster, they're also investing in high performance network, right? Because without network and the GPU can't work together efficiently and AI doesn't require more compute, it requires both communication. That's Arista's opportunity. They becoming one of the fastest growing industry upgrades in technology. So, we got to have them. And here's the fourth company I want to talk about. This is the big dog in the room. It's the leading AI memory stock. It's currently trading on the Korean markets. Um, and it's shifting to the NASDAQ tomorrow. It's not really a IPO because the stock is already up 24 43% year to date. The company is SK Highix. I think this company is not understood because it's in China. I mean it's in Korea. But everybody heard Imp Micron's earnings. Everybody celebrated Micron. But Micron report told us something much bigger. The memory demand is exploding. Now ask yourself, who's leading AI memory race? Well, most people thought it was Micron, but it's really SKH. They're one of the global leaders in HBM, high bandwidth memory, and they specialize in memory that sits alongside advanced AI processing. Why does that matter? Think a GPU is an engine on a race car. Memory is the fuel system. If the engine is incredibly powerful, the fuel that reaches has to be fast enough. Performance suffers. That's why HBM matters. It feeds enormous amounts of data into AI processors which helps the demand and the traditional memory. So many of the most advanced AI systems rely on some type of temporary system because drive isn't enough. And the one reasons why investors pay close attention to SKH Highix is because the company has become a major supplier of advanced HBM used in cuttingedge AI hardware. And that's what kind of excites me. The memory isn't just growing because of chat GPT. It's growing because AI data centers, autonomous vehicles, robotics, industrial automation, edge AI, and AI smartphones. Don't forget AI PCs. And every one of those trends increase demand for faster and faster memory that creates much larger long-term opportunity. And this is why Micron's earnings mattered so much was just good for Micron. It validated the demand in an environment altogether. So again, quantum stocks got destroyed. Memory collapsed. The media screaming that things are rotating. But the truth is these stocks are getting really cheap compared to where they are. So don't be a panic seller. So these are full stocks I'm really looking at because I understand how big of a role they play in what we're going at. So you may hear the word picks and shovels, it just simply mean when people on a gold rush, the gold rushers didn't make that much money. The people that saw the Levi jeans is the people that sold the picks and shovels. And so the picks and shovels are whatever is necessary for the big dogs to run. Here's your picks and shovels for the ARAS. It's your boy, the Wall Street Traveler. Make sure you like, make sure you subscribe, and share this with someone who wants to make money in the AI revolution. Salute.