Vivek Arya

NVIDIA, Broadcom, and Micron are the three largest companies in my coverage and all trade below the market multiple despite strong earnings growth. The growth rates justify further upside, making them attractive investments.

NVIDIA has strong fundamentals with sales growing over 80%, diversified across hyperscalers, neo-cloud, enterprise, and AGI/robotics. Gross margins holding at 75%, dividend increased 25x. Despite full positioning, the company's full-stack approach (silicon, hardware, systems, power, software) and developer base provide a durable competitive advantage, allowing it to keep 70-80% of industry value as AI infrastructure grows. The race for AI is supply-constrained and global, supporting long-term growth.

NVIDIA, Broadcom, and Micron are the three largest companies in my coverage and all trade below the market multiple despite strong earnings growth. The growth rates justify further upside, making them attractive investments.

The memory industry is undergoing a structural rather than cyclical shift driven by AI demand. Creating high-bandwidth memory for AI is 3-4 times harder, requiring more wafers and physical space, causing a supply/demand imbalance expected to persist at least until end of next year. The three scaled memory companies (Micron, Samsung, SK hynix) are showing pricing discipline after prior boom-bust cycles, and the industry is generating strong free cash flow. Micron's new multi-year customer agreements provide visibility, reinforcing the durability of this cycle.

The memory industry is undergoing a structural rather than cyclical shift driven by AI demand. Creating high-bandwidth memory for AI is 3-4 times harder, requiring more wafers and physical space, causing a supply/demand imbalance expected to persist at least until end of next year. The three scaled memory companies (Micron, Samsung, SK hynix) are showing pricing discipline after prior boom-bust cycles, and the industry is generating strong free cash flow. Micron's new multi-year customer agreements provide visibility, reinforcing the durability of this cycle.

The semiconductor cycle is more durable than past cycles because demand from AI and hyperscaler infrastructure is exceptionally high (e.g., 100% GPU utilization, no dark compute) and supply is disciplined (only one leading-edge wafer supplier, TSMC). The SOX index's rally is driven by earnings growth, not multiple expansion, and valuations remain reasonable relative to growth rates.