Tae Kim
· Key Context by Tae Kim
· June 08, 2026 at 23:21
· ⏱ 4 min read
| Read on Substack ↗
Summary
The article argues that market volatility is best handled through disciplined portfolio management—avoid leverage, invest long-term in product cycle winners, do your own research, and diversify. The key market takeaway is that demand for CPUs and HBM memory remains extremely strong, as evidenced by Jensen Huang’s trip to Korea to secure memory allocations, which supports suppliers like Micron and reinforces the AI/GPU product cycle narrative.
•Charlie Munger said the only way smart investors get clobbered is by using too much leverage.
•Every secular growth rally has scary selloffs of 30% or more, even as the broader trend rises.
•Focus on companies with the strongest fundamentals tied to the next major product cycle, such as Nvidia during the dotcom crash and Apple during the iPhone launch.
•If a stock doubles in two months, consider cutting the position in half to lock in gains.
•Diversify across three to five ideas to capture the unexpected top performer.
•Jensen Huang is in Korea throwing out first pitches and appearing on TV to secure better HBM memory chip allocations, signaling tight supply.
Read time4 min
Length4,719 chars
Categoryfinance
Ideas
Tae KimSenior writer, Barron's; author of The Nvidia Way
Article uses Nvidia's GPUs during the dotcom crash as an example of a product cycle winner that climbed through recession, and the current Computex context underscores Nvidia's central role in AI/HBM
Article uses Nvidia's GPUs during the dotcom crash as an example of a product cycle winner that climbed through recession, and the current Computex context underscores Nvidia's central role in AI/HBM demand (Jensen's Korea trip implies Nvidia's supply chain efforts).
Risk: Valuation already elevated; potential for demand normalization or geopolitical disruption in memory supply.
Tae KimSenior writer, Barron's; author of The Nvidia Way
Article states HBM memory demand remains 'incredibly strong' and that Jensen Huang is in Korea specifically to 'secure better memory chip allocations,' directly benefiting HBM suppliers like Micron.
Article states HBM memory demand remains 'incredibly strong' and that Jensen Huang is in Korea specifically to 'secure better memory chip allocations,' directly benefiting HBM suppliers like Micron.
Risk: HBM cycle could peak if AI demand decelerates; pricing competition with SK Hynix and Samsung.