AI-Fueled Rally to Continue Into 2027, Analyst Luria Says
Speakers
Gil Luria
— Technology Strategist at D.A. Davidson
Summary
Gil Luria, head of technology research at D.A. Davidson, argues that AI-fueled semiconductor rally will continue into 2027. He sees real economic activity around AI, with chip demand outstripping supply for years. Nvidia, Micron, and SK Hynix are priced as if the cycle is peaking, creating opportunity, while memory stocks are less cyclical due to long-term contracts and trade at a deep discount to CPU peers.
- AI revenue run rate for leading firms has surged from zero to $100B in two years.
- Chip demand will continue to outstrip supply for at least one to two years.
- Nvidia, Micron, and SK Hynix are priced as if the cycle is rolling over, presenting a buying opportunity.
- Memory is now less cyclical because Micron locked in five-year contracts, eliminating downside.
- Memory stocks trade at around 8x earnings versus 40x for CPU stocks.
- Optical networking names are viewed as overvalued, trading as if the AI party lasts until 2030.
- Upcoming tech earnings, like Microsoft, could reset sentiment if they show AI returns with controlled CapEx.
Ideas
Nvidia mispriced for cycle peak
Nvidia is priced as if the AI semiconductor cycle is rolling over, but AI-driven demand will continue for years, creating a buying opportunity.
Memory less cyclical, cheap, contracts
Memory stocks like Micron and SK Hynix are less cyclical than historically perceived because Micron has signed five-year deals that eliminate downside, and they trade at a steep discount (8x earnings) compared to CPU stocks (40x earnings), making them compelling.
Up Next
This Bloomberg Markets video, published July 14, 2026, features Gil Luria discussing NVDA, MU, 000660.KS. 2 trade ideas extracted by AI with direction and confidence scoring.