MICRON, AMD, NVIDIA HOLDERS: Google’s BIG Shock HELPS Us!

All right, guys. Welcome back to the channel. In this video, we're going to talk about the fact that Google just green lit the entire AI space memory semiconductors with their latest earnings announcements. We're going to dig into that here in just a minute. But before, obviously, this is pretty cool view to be recording a video, right? I'm in the uh Veil Eagle airport heading back home today from a family trip with my family out here uh for summer. I recommend if you can Colorado in the summer. It's amazing. Okay, so here's what happened. So, I know you probably are looking at the entire market today. The Dow's down 500. The NASDAQ's down 400 plus, and you'd expect to look at memory chips like Micron and SKHX and even AMD and Nvidia, and you would expect them to be just dramatically down. They are not. Why aren't they? I personally think it's because of what Google did in their Wednesday evening earnings announcement. And here's what essentially they they said. They came out, they met expectations, all that, but everybody was really looking at capital expenditures, the guidance from Google on what their AI capital expenditure spend would be going forward. And they raised those expenditure numbers uh between 195 to $25 billion. They raised that up from about 185 billion. And that spooked Wall Street only in the in in the in the uh significance of Google stock. What I mean by that is that raising of that capital expenditure guidance essentially triggered kind of a sell and I think Google's down about 5% today a sell on Google. But what it really did was it signaled to the space, to the AI space, to Wall Street and everybody that Google, one of the hyperscalers, right, is not going to slow down on capital expenditures for their AI buildout. You know, they're building out Google Cloud and all of their AI search and all of their stuff. They're been they're they're building that out. In fact, Google Cloud um platform, I think their earnings jump or their their revenues jumped to 24.5 billion, which was a dramatic increase move up. But I really want to go back to this capital expenditure thing. And that's really what's cool. So, let's bring this back to all of our AI stocks that we own. Micron, SKHX, all the chips, even other parts of the stack. For the most part, none of them are are being impacted. In fact, Micron is up $32 right now in a what is arguably a extremely red market. The Dow up, you know, the Dow down 500, NASDAQ down 400 plus. Why? I think ultimately what we saw with the guidance from Google, from Alphabet in the fact that they are raising their capital expenditure uh guidance says to the street, we are not going to slow down. In fact, we are going to raise it. we are going to move up because again remember what I said to you guys it is an arms race the AI expenditure the AI capital expenditure uh dollars especially from the hyperscalers Meta Google Amazon Microsoft it's not going to slow down it can't guys it can't so remember this okay remember that every time you see a Wall Street article anywhere that talks about oh we're worried about capital expenditures this thing may stop just kind of go no it's not Remember, Google as an example can't be seen by the marketplace as being a lagard or as being somebody not spending or not developing the right AI products to deploy to their customers, their retail customers, their business customers. They can't do it because then their business would take a dramatic hit. You see, so that's what's really cool about Google's earnings announcements and the fact that they raised their capital expenditure um forecasts. Yes, it spooked Wall Street in the context of Google's stock and Google stock took about a five to seven percent hit, but it really green lit and said to Wall Street, hey, you guys are over um I think overemphasizing the perception of capex dollars expenditures. Meaning every week there's always an article, always somebody out there talking about, oh, are they going to are they the hyperscalers or enterprise clients going to start reducing those capex spins? It's it's an article or a theme or a narrative or a talking head every single damn week, guys. In fact, it's getting kind of boring. It's like, can't you find something else to talk about, you know, and watch next time we we get close to SKHakes or Samsung or Micron's earning announcements? You know what they're going to trot out there? They're going to trot out, oh, you know, memory is cyclical, all that kind of stuff. No, it's not. And I've talked to you guys about this in videos a lot. I've talked to you guys about this, the fact that it is not cyclical anymore. Those cycles are essentially done because of, for Micron sake, as an example, 16 strategic customer agreements. um the fact that fabrication facilities are going to come online and and Micron is going to manage how they ship that product to meet or beat earnings expectations to also deliver the products. But they're going to manage that flow. They are okay. Okay. So, Micron is So, I really wanted to stress to you in this video that there's always going to be fear and uncertainty from Wall Street and what they're saying and overreaction on capex spend. And Google just showed the Wall Street guys and gals that they're completely wrong and that in fact they're not going to be slowing down, they're going to be speeding up. And here's what's going to happen in this. You got to know that Microsoft, Amazon, Meta, what are they going to do? Are they going to now pull back on capex expenditures? No, they're not. They're because they're looking at Google going, Google just raised theirs 15 to 20 billion right now on what their earnings were, you know, their guidance for capex expenditures. So, do you think that Microsoft is going to say, "Oh, well, we're going to pull back." No. Because the next thing that comes out around that will be the fact that Microsoft is now pulling back on capex expenditures. Hm. What's wrong with Microsoft business? Hm. They're they're they're not doing a good enough job to keep up with capital expenditure, to keep up with delivering AI products to their clients and so forth and so on because that's what will get them. That's what the Wall Street journalists will say. They will say that in the context of if one of these major hyperscalers comes out and says, "Hey, we're going to reduce capex spend." But meanwhile, you got to know that every week there's going to be some article out there talking about, oh, you know, everybody's afraid of capex expenditures associated with AI spend. And the fact of the matter is, guys, it is it it is not going to slow. I mean, Google is a perfect example of the entire well definitely hyperscalers, but also enterprise to mid to to medium even to small companies. They cannot afford to be seen by their respective clients, customers as not having an AI strategy, as not spending money on an AI strategy for their clients. Okay? Always come back to that. Please, please, please. By the way, if you haven't already done so, hit that subscribe button. Please hit that like button. I appreciate if you would do that for me. But this is significant. Okay? I loved when I saw this report come out and I'm like, "Okay, this is really, really interesting." And it's even more interesting in what's going on in uh the stock market today. We got the NASDAQ down 400, almost 500 I think. Last time I looked it was like down 480. You got the Dow down over 500. And meanwhile AI stocks are doing okay. Micron's up. SK Hinx is up as of the recording this video. And that's what's really really cool about this, okay, is that we have we today, this week, got validation for capex expenditures from one of the biggest hyperscalers out there. And the other guys are going to follow suit. The other guys are not going to reduce that capex spend guidance. They're not they're not going to do it, guys. They can't be seen as a lagard or as falling back or not being aggressive enough. They can't. Okay. So, what do you think? Drop in the comments below. I'd love to hear from you. I want to know what you think about this. But this to me was exciting news. It really was. Okay. So, um trying to think of anything else I need to talk to you guys about, but I appreciate you giving me a few minutes. And as always, thank you. And I'll be back in my studio later today, tonight. If anything develops, more videos coming. I'll see you. Bye.