Patrick Armstrong

In a stagflation environment, oil refiners have incredible pricing power on refined products (jet fuel, diesel) due to scarcity of supply from the Strait closure and inventory rebuild needs.

Gold miners offer a geared play on gold: if gold stays at current levels they generate huge profits (cash costs $1500-1900 vs gold ~$4800), and if gold rises they amplify returns.

Speaker explicitly names Micron, Samsung, and SK Hynix as companies he loves in the high-bandwidth memory space. He states they are "cyclical companies... essentially commodities" but are currently priced at less than 10x forward earnings with high growth. Demand from AI hyperscalers is "insatiable," and these companies have sold everything they can produce through 2027, even with their announced massive CapEx. This gives them incredible pricing power and a clear multi-quarter growth runway. LONG because their oligopoly position, pricing power, and alignment with an undeniable, funded demand trend (AI infrastructure build-out) present a high-conviction opportunity, especially at current valuations. The cyclical nature of the memory business eventually leads to overcapacity and a downturn in the cycle, potentially in a few years.

Speaker explicitly names Micron, Samsung, and SK Hynix as companies he loves in the high-bandwidth memory space. He states they are "cyclical companies... essentially commodities" but are currently priced at less than 10x forward earnings with high growth. Demand from AI hyperscalers is "insatiable," and these companies have sold everything they can produce through 2027, even with their announced massive CapEx. This gives them incredible pricing power and a clear multi-quarter growth runway. LONG because their oligopoly position, pricing power, and alignment with an undeniable, funded demand trend (AI infrastructure build-out) present a high-conviction opportunity, especially at current valuations. The cyclical nature of the memory business eventually leads to overcapacity and a downturn in the cycle, potentially in a few years.

Speaker explicitly names Micron, Samsung, and SK Hynix as companies he loves in the high-bandwidth memory space. He states they are "cyclical companies... essentially commodities" but are currently priced at less than 10x forward earnings with high growth. Demand from AI hyperscalers is "insatiable," and these companies have sold everything they can produce through 2027, even with their announced massive CapEx. This gives them incredible pricing power and a clear multi-quarter growth runway. LONG because their oligopoly position, pricing power, and alignment with an undeniable, funded demand trend (AI infrastructure build-out) present a high-conviction opportunity, especially at current valuations. The cyclical nature of the memory business eventually leads to overcapacity and a downturn in the cycle, potentially in a few years.