Name: What We're Actually Buying During This Dip
Uploaded: 2026-06-06T13:00:10+00:00
Duration: 843 s

Speakers

Melvin — AI Writer / PRO Analyst, Milk Road

Martin

Kyle Reidhead — Head of Research, Milk Road

Summary

Milk Road analysts Melvin, Martin, and Kyle discuss their monthly 'Payday' trades during a market dip. Melvin buys AVGO for interconnections bottleneck and remains bullish on memory stocks while trimming AMD. Martin sells some Bitcoin and watches Nubank, expecting an S&P correction. Kyle adds Nvidia as a high-conviction AI infrastructure bet.

Melvin allocates $500 to AVGO, citing ASIC and networking benefits from AI infrastructure bottleneck shift.
Melvin takes profits in non-conviction stocks and plans to reduce AMD, but remains bullish on memory (SK Hynix, Micron).
Martin sells some Bitcoin and holds 17% cash, expecting a correction in S&P 500 and Nasdaq.
Martin adds ServiceNow, Reddit to watch list and researches Nubank as a potential buy on dip.
Kyle adds Nvidia, calling it the easiest AI infrastructure bet with a $10 trillion market cap target.
Discussion on AI stock valuations, with Kyle arguing Nvidia's PE is reasonable given growth.
Analysts debate risk management between equity and crypto, noting floor from earnings.
The video includes a sponsored segment for Nexo crypto platform.

Trade Ideas

Melvin AI Writer / PRO Analyst, Milk Road 0:54

Broadcom benefits from interconnections bottleneck shift.

Broadcom benefits from AI infrastructure bottleneck shift from pure compute to physical interconnections. Its ASIC business designs custom chips for hyperscalers like Google, which recently raised $80B for AI compute, and its Tomahawk networking switch is the backbone of datacenter scaling as clusters grow from thousands to hundreds of thousands of GPUs. Both lines will drive significant revenue growth, and near-term earnings are expected to crush, pushing the stock to the 600s.

Melvin AI Writer / PRO Analyst, Milk Road 5:05

AMD's run is largely over.

The run for AMD is largely over, so Melvin is thinking about taking bigger profits on that position. While the broader compute trade still has runway, AMD's specific upside appears exhausted.

Melvin AI Writer / PRO Analyst, Milk Road 5:19

Memory stocks still have upside.

Memory stocks like SK Hynix and Micron still have a long way to go within the compute trade, which continues to offer upside as the AI infrastructure buildout progresses.

Martin 7:59

Bitcoin likely to fall with S&P correction.

With an S&P 500 correction expected, Martin sold some of his Bitcoin holdings and now holds 17% cash. He believes a broad market pullback will negatively impact Bitcoin.

Martin 8:50

Nubank is an attractive compounder on dip.

Nubank is a compounder with a huge user base and ability to increase margins and monetization. The current dip due to CFO departure and Bank of America downgrade creates an attractive entry. He is researching the impact and may buy more.

Kyle Reidhead Head of Research, Milk Road 9:34

Nvidia is undervalued with huge AI upside.

Nvidia remains the easiest bet on the AI infrastructure buildout. With a PE under 30 and ~89% year-over-year growth, it is undervalued. It has a strong floor due to real earnings and can still double to $10 trillion market cap by 2027. It is a high-conviction large position.

What We're Actually Buying During This Dip

Summary

Trade Ideas

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