Drew Pettit 5.0 2 ideas

The semiconductor story is real due to AI build-out, supply constraints, margin expansion, sales growth outpacing assets, and markets rotating to supply-constrained areas. It is a growth story, not cyclical, with hyperscaler buyers providing stability.

Defense names have priced in a lot of expected growth and cannot pass through cost increases because their buyer (government) has power, making the sector unattractive.