A New Crypto Bull Market? Two Signals Investors Should Watch | John Wu
Speakers
John Wu
— President, Ava Labs
Summary
John Wu, President of Ava Labs, shares his bullish views on TSMC, Intel, Micron, and Bitcoin, citing specific catalysts and valuations. He also discusses the tokenization of real-world assets on Avalanche and the shift in market structure toward ETFs and quant-driven flows.
- John Wu is bullish on TSMC, calling it cheap relative to other AI stocks and noting a location discount.
- He sees Intel as a beneficiary of CPU scarcity driven by agentic AI.
- Micron is highlighted as cheap on a PE basis, trading under 10x earnings.
- Bitcoin is expected to have a mini bull run due to old holder turnover and RIA channel flows.
- Avalanche's partnership with Broadridge for tokenized equities is discussed.
- John Wu comments on the decline of active management and the rise of ETFs and quant trading.
- He warns against over-speculation and emphasizes valuation discipline.
- The conversation also touches on AI-driven software disintermediation and its limits.
Trade Ideas
TSMC cheap relative to other AI stocks.
TSMC is historically a low-volatility, steady, high-quality company. Its valuation is fair relative to itself but cheap relative to other AI stocks considering its growth rate. There is also a discount due to its Taiwan location and less publicity than US companies. He would allocate a higher weighting to TSMC in his portfolio.
Intel benefits from agentic AI CPU scarcity.
Intel is good at making CPUs and there is scarcity in CPUs due to the agentic AI world coming. Beyond government support, the CPU demand from AI agents provides a fundamental reason to own Intel.
Micron cheap on PE basis.
Micron is a perfect example of a cyclical memory business that looks cheap on a PE basis, trading at less than 10 times next year's earnings. Despite uncertainty about how long the cycle lasts, the stock is undervalued relative to its earnings power.
Bitcoin driven by holder turnover and RIA flows.
Bitcoin is set for a mini bull run driven by two factors: the turnover of old-guard Bitcoin holders who have sold into the ETFs, and the RIA channel flows that are starting to kick in as advisors get educated and recommend Bitcoin to their clients. The macro environment is calm and there is hope for the clarity act.
Avalanche captures value from real-world asset tokenization.
The Avalanche ecosystem is positioned to capture value from the tokenization of real-world assets. Traditional finance institutions are building private chains on Avalanche and will eventually connect to the main chain for liquidity, driving value to the AVAX token. Partnerships like Broadridge and Straits X validate this infrastructure.
