This Won't End Well | Animal Spirits 464
Спикеры
Michael Batnick
— Управляющий партнер, Ritholtz Wealth Management
Ben Carlson
— Директор по институциональному управлению активами, Ritholtz Wealth Management
Michael Batnick and Ben Carlson discuss the current stock market melt-up, focusing on the semiconductor sector and South Korean stocks as driven by AI demand. They argue that despite huge price gains, valuations remain reasonable because earnings are growing even faster. The episode also covers GLP-1s, AI's impact on jobs, and retirement planning.
- The S&P 500 has rallied sharply, driven by semiconductor and AI-related stocks.
- Memory chip stocks like Micron and SanDisk have massive price gains but trade at low forward P/E multiples due to explosive earnings growth.
- South Korean equities (EWY) have gone vertical, with earnings growth matching price action on AI demand.
- The hosts argue the current rally is not a bubble because fundamentals support the move.
- GLP-1 drugs are impacting consumer behavior, reducing alcohol and chocolate purchases.
- AI is reshaping entry-level jobs and the apprenticeship model, with potential long-term social consequences.
- Retirement longevity risk and the impending wealth transfer were discussed.
Идеи
Memory semiconductors cheap on forward earnings
Semiconductor/memory stocks like Micron (MU) and SanDisk (WDC) have rallied massively (Micron up 800% in a year) but trade at very low forward P/E multiples (Micron ~9.7x 2026e, SanDisk ~11.5x) because earnings growth driven by insatiable AI compute demand has been even faster than the price rise. This combination of huge price gains and low valuations makes the current melt-up the most logical in history — it is not a bubble because the future can explain the present.
South Korea AI earnings driving vertical rally
South Korean stocks, represented by the EWY ETF, have gone vertical in the last year, driven by a massive explosion in forward earnings per share as companies like SK Hynix and Samsung become AI plays. The earnings chart matches the price chart, showing fundamental support. The South Korean market has overtaken Canada and the UK in size, reflecting this AI-driven transformation.
Далее
This The Compound News video, published May 13, 2026, features Michael Batnick, Ben Carlson discussing SMH, MU, WDC, EWY. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Michael Batnick, Ben Carlson · Tickers: SMH, MU, WDC, EWY