NVDA, MU, INTC & Other Names Ivan Feinseth Sees Leading Generational Tech Cycle

Welcome back to next gen investing. My name is Alex Coffey and I'm joined Ivan Finseth, senior partner, chief investment off and the director ofrch at Tigress Financial Partners. Here to discus micron, which Ivan probably should have been the story of the day if Accenturednt nonetheless, a r important quarter for the company. Curious, your big picture takeaways from Micron's most recenings here. As large language models become more complex and inferences become more detailed, you need mored mt at the center or even the and they continue to increasend, there. The quarter w incredible. Revenue w over 250%, earnings up over 800%. Theyontinue to grow just incr fastse of the need to meet the demand for their innov memory, especially high bandwidth memoryompression memory. So to meet the demands of large and larger models and more detailed inferences, Ivan is a chief investment officer. As someone who's considering where to deploy capital, I think if we were looking at any other induhat had these type of valuation metrics, growth multiples. ET cetera, the decision would be pretty straightforward and maybe it even is here. But there is a history cyclicality when it comes to these memory chip makers. And it's sort of one of thoseential, you know, fool me once, fool me twice situations in your mind. Do those historical patterns apply now? And if they do, is it a time, you know, for the cycle? Or how are you looking at that? The memory demand cannot be met. Right now the memory demand is exceeding supply by a lot. There's a long runway. There is a long cycle. l the ty number one pick for the infrastructure is ia andn I like SanDisk for storage, for memory. And this is just a a tremendous investing cycle that is driving the economy. And theoing growth is driving demand for for GPUs, memory connectivity and security. Andhose are the key functionality that you need for strong a strong AI infrastruc When kind of building out portfolios. Then you mentioned a lot of those names, the sort of, you know, it's hard to, you know, I guess call them high beta when you abe Nvidia. But let's just say like the AI beta in the portfolio, are you offse that beta with other areas of the market? Or are you looking tos outside of stocks internationally, or is it just one of those once in a generation? As younow, those like Jensen Wong have talked about opportunities where if you invest in the rightlaces, there' there's a ton, Absolutely. And AI is thetill. underlying theme to everything st spoke before about Accenture and how companies want to adopt AI, and the opportunity for Accenture to help companies adopt AI. So not only do you need the hardware infrastructure, you need software. And I view this pullback on theongoDB as the surp departure of the C as a buying opportunity in MongoDB. We are realizing this SaaS apocalypse of the call out of the end to software was overdone. I still like Microsof what they're doing with Azure AI infrastructure and copilot. So it's this infrastructure providers, the servi providers and the component providers and the software providers. And there's a lf room for everyone. Going back to the chip makers, one thing that sto to me and some of this is just like, you know, coincidental, I'm sure as well. But I saw quarterly performance wise, at least as of earlier in the week, the relationship between relativeerformance of the Sox index versus the Nasdaq 100 we its worst quarterly performance since, I don't know, somewhere in 2007. Leust say, you know, a long time in your mind. I mean, especially given the context of the numbers out of companies micron, is that just presenting opportunity? And was that more in yourind about the companies like Microsoft and some of those hyperscalers re cat up than it was Sox semics underperforming? Absolutely. I would prefer to pickidual stocks than the ETF. And th a handful of leaders, the ones I've sai like micron SanDisk and most importa Nvidia that you must own. And investors are going keep increasing allocation to the sector as com continue toincrean their AI infrastruct When you look at this broader A infrastr trade, and you look at how some of thehypersca, responding to the announcement of CapEx earlier in the summer versus how that shifted when Microsoft was able to, I think, for the first time fro of these big com, really articulate how the returns were already here. Do you think those free cash flow concerns, and I know if I'm overstating it, maybe leverage concerns around this build out have started to fade. And, you know, maybe we can we can watch this convergence of the hyperscalers and the infrastructure names again, like we s much of this laste of years. Absolutely. You've seen the recovery in Microsoftrom earlier this year when everybody was concerned the SaaS SaaS apocalypse. The other and one more name I want to add is meta. And look how meta bounced after t announced the the iction of muse, along with several devices like th pendant and the new generation of glasses that enables users to access this. So it's all going t about accessibility and just part of everybody's as far from as an individual, from any type of planning and plan booking, a trip, booking, creating a m for a dinner. I mean, from every area you think of, consumers are going to rely on AI, and then enterprises are going to increasingly rely on an eye for supplyin optimiz target marketing, cus relationship management, proactive customer management. So you look at the airlines, the cruise, how they're increasingly building AI into their creat more seamless customer booking and booking interaction. So, and it's just going to keep building on itself as the models get smarter and theyet more robust and they're able to meet a fascinating time to be alive. And Ivan, I r appreciate the time and your insights on the, and we're looking forward to swhere it goes from here. Ivan Seth, a senio