Kim Forrest

Intel is being revived by the forward movement of AI development. After being left for dead, it is now coming back as AI rollout benefits more than just NVIDIA. We are in the bottom of the second inning of AI, implying a long runway. Discernment is happening and Intel is a beneficiary.

Software, especially enterprise software, is important and the recent devaluation is due to a misunderstanding of its value. AI will not replace the need for software that stores and accesses historical data (like Microsoft Excel). The sell-off driven by AI hype is premature.

Microsoft stock has been beaten up alongside other software names due to fears of AI replacing human workflows. Forrest argues MSFT holds the "data repository for most businesses around the world." Unlike generic software, MSFT's moat is the data itself. It will not get "vibe coded out of existence." The sell-off is an overreaction; MSFT is a value-add company on sale. Enterprise spending slowdown or faster-than-expected AI agent adoption bypassing SaaS UIs.

There is concern about whether chipmakers can meet demand, but the memory market is an oligopoly with few players. Whether the market demands "Training Chips" (Nvidia) or "Inference Chips" (for running models), *both* require massive amounts of memory. Demand is agnostic to *which* AI chip wins. High demand + limited competition (Moat) = Bullish for memory makers (implies MU / SK HYNIX). Cyclical downturn in consumer electronics dampening non-AI demand.