Name: ‘All Time New Highs' In 90 Days: Michael Lee On Coming ‘Mini Boom’
Uploaded: 2025-05-15T16:22:14+00:00
Duration: 1473 s

Speakers

Mike Lee — Founder, Michael Lee Strategy

Summary

Michael Lee discusses the V-shaped market recovery after the April tariff-driven selloff and argues the S&P 500 can make new all-time highs in the next few months, with a US mini boom and lower rates supporting equities. He is bullish on AI infrastructure, especially CoreWeave, Nvidia, AMD, Marvell, Broadcom, and Palantir, and expects Fed funds and Treasury yields to fall. He dismisses tariff inflation fears and sees hedge fund underpositioning as fuel for further upside.

Michael Lee says the market recovery has been faster than expected and expects new S&P 500 highs in the next few months.
He attributes upside to hedge fund underpositioning, better earnings, no tariff-driven inflation, Fed cuts, deregulation, lower energy costs, and fiscal stimulus.
He expects double-digit three-year S&P 500 returns and mid-teens Nasdaq returns.
AI is framed as the largest and fastest-growing technology trend, with a massive infrastructure and compute buildout.
CoreWeave is his top pick, seen as a potential four- to five-bagger over 18-24 months.
He favors AMD, Marvell, and Broadcom as cheap AI suppliers and calls Palantir his favorite software stock.
He expects Fed funds to fall to 2%-2.5% and the 10-year Treasury yield to settle around 3%-3.5%.
He dismisses tariff concerns as overhyped and not long-term inflationary.

Ideas

Mike Lee Founder, Michael Lee Strategy 7:26

CoreWeave is a four-to-five-bagger

CoreWeave is his favorite stock: it stands up data centers, buys Nvidia GPUs, and rents them to Google, Microsoft, and Facebook for AI projects. Revenue grew from $230 million in 2023 to $1.8 billion in 2024 and is expected to reach $8 billion in 2025 and $12-$16 billion next year, yet it trades cheaply. As the street realizes the AI server-farm buildout is capacity-constrained rather than slowing, the stock could be a four- to five-bagger over the next 18-24 months.

Mike Lee Founder, Michael Lee Strategy 7:57

AI infrastructure demand is accelerating

AI is the largest and fastest-growing technology trend in history, and the exponential growth of data creation requires massive computing power. Demand for AI GPUs from Nvidia, Marvell, AMD, and Broadcom is projected to rise ninefold from 2025 to 2027, and the buildout of server farms and AI infrastructure is not slowing; growth is only constrained by capacity.

Mike Lee Founder, Michael Lee Strategy 9:18

Nvidia demand far exceeds supply

Nvidia is a key beneficiary of the AI compute buildout: demand for its GPUs is so far above supply that for every one GPU it sells, there is demand for 15, and its growth is constrained by TSMC capacity rather than demand. He expects the overall demand for AI GPUs to increase ninefold from 2025 to 2027.

Mike Lee Founder, Michael Lee Strategy 13:29

S&P new highs, mini boom ahead

The S&P 500 can make new all-time highs in the next few months, potentially run 10-15% over the next two to three months before a euphoric pullback, and deliver double-digit returns over the next three years. He argues hedge-fund long exposure is at five-year lows, institutions and retail need to chase performance, earnings are better, tariffs have not caused inflation, Fed cuts are coming, and deregulation, lower energy costs, and fiscal stimulus set up a US mini boom.

Mike Lee Founder, Michael Lee Strategy 15:24

Lower yields ahead for Treasuries

He expects lower rates because the Fed is 200-250 basis points too restrictive, inflation is trending toward the low 2% range, tariffs are not long-term inflationary, deficits are shrinking, energy costs are falling, and AI is boosting productivity. He sees Fed funds going to 2%-2.5% and the 10-year Treasury settling around 3%-3.5%, which implies lower yields and higher Treasury prices.

Mike Lee Founder, Michael Lee Strategy 19:49

Nasdaq mid-teens returns on AI

He expects mid-teens returns in the Nasdaq over the next three years, driven by the AI buildout, lower rates, and a broader US mini boom, with the market still underappreciating the scale and speed of the AI trend.

Mike Lee Founder, Michael Lee Strategy 21:56

Cheap AI suppliers see multiple expansion

AI semiconductor suppliers to hyperscalers, particularly AMD and Marvell and also Broadcom, are incredibly cheap and should see double-digit multiple expansion while growing 20%-40% for the foreseeable future as the infrastructure buildout for AI compute continues. He calls this an easy generational place to invest.

Mike Lee Founder, Michael Lee Strategy 22:44

Palantir is favorite software generational buy

Palantir is his favorite software stock of all time. Although it is expensive, he believes it can grow from about $5 billion in sales this year toward a much larger market as the AI software market expands from roughly $60 billion in 2025 to $1 trillion by 2030, while maintaining market share and 60%-70% margins. He thinks there is no other software solution that can integrate large language models into an organization as effectively, and he would buy some now and more on dips.

‘All Time New Highs' In 90 Days: Michael Lee On Coming ‘Mini Boom’

Summary

Ideas

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