Dan Ives: Q2 earnings will be the driver for mega-cap stocks
Speakers
Dan Ives
— Managing Director, Wedbush Securities
Summary
Dan Ives discusses SpaceX as an early-stage AI data story, expects Q2 earnings to be a pivotal driver for mega-cap tech and chip stocks, and highlights Alphabet as a rational valuation play in AI.
- SpaceX seen as a long-term AI data play, still in early innings.
- SK Hynix called the golden child of AI trade, with Q2 earnings as a potential catalyst after a sell-off.
- Hyperscalers Alphabet, Microsoft, Amazon are in the penalty box; Q2 earnings a fork in the road.
- Alphabet flagged as a valuation rationalization name in AI, drawing Buffett-style interest.
- Ives believes the AI demand story is still in the third inning, supporting chip demand.
Ideas
Early innings AI data space play
SpaceX is a long-term AI data story still in mile 1 or 2 of a marathon; short-term launch speed bumps are noise, and the company is essential to the fourth industrial revolution, similar to early Amazon or Facebook.
Golden child AI memory stock, Q2 catalyst
SK memory (SK Hynix) is the golden child of AI trade; the massive sell-off since going public sets up for Q2 earnings to act as a catalyst, with AI demand-supply still favorable at 15:1 and the demand story early.
Hyperscalers' Q2 earnings pivotal moment
Hyperscalers Alphabet, Microsoft, Amazon are funding the AI capex party but are in the penalty box; Q2 earnings season is a fork in the road that could validate their spending and lift them out of the penalty box, with AI demand still early.
