☕️ Micron's $2,200 Target Isn't the Craziest Number I See Today

Howdy! 👋 

Welcome back after what I hope was a wonderful Fourth of July if you’re here in the US and a fabulous weekend if you’re elsewhere. 😀 

On to the markets. 

Last week it was all about rate hikes, but this morning futures were ripping and suddenly “chips are back.”   

We know better. 

They – chips – never left and the first Warsh-led Fed meeting’s on deck Wednesday. 

Buy the best, ignore the rest.® 

Here’s my playbook. 

1 – What I expect this earnings season 

I sat down for a brief conversation with the fabulous David Asman this morning ahead of today’s opening bell to talk about earnings and which stocks I’m watching carefully. (Watch) 

A few observations later, I was pre-empted by none other than President Trump himself, who simultaneously rang both the NYSE and Nasdaq bells from the Oval Office to get trading started. A first by any President if I have my facts straight. 

Speaking of which… 

2 - Why most investors still probably don’t have enough chip stocks 

US President Donald Trump expects between 40% and 60% of chip manufacturing to be in the US by the time he leaves office. He also asserted that AI is “bigger than the Internet” buildout. (Read) 

I agree on both counts. 

Most investors think they have this covered – and to be honest they probably do in some form. 

Here’s the challenge. 

My guess is that they don’t own enough shares to move the needle. 

Yes, they’ve dutifully diversified as they’ve been taught since the 1950s when Markowitz introduced the concept… but that means they’re managing fear instead of opportunity. 

The world’s most consistent and successful investors play to win. 

Adding just a few extra shares of the world’s best companies is what really moves the needle, especially if you’re an ETF investor or “indexer.” 

Consider… 

Keith’s Investing Tip: Diversification is how you play not to lose. Conviction is how you play to win. If you know where the world's headed, act like it. 💯 

Btw and speaking of which, you’re not alone if you’re reading this and thinking that you have no idea or could use some help figuring that out along the way. One Bar Ahead®, our premium research, could be just the ticket. Folks reading along tell me that it’s changed their lives, that they’re more confident and effective when it comes to investing than ever before. If you’re getting the results you want, awesome. But if not, I’ll be here if you need me. 

3 – Lockheed told you where defence spending is going next 

Ultra Maritime does one thing scary well – hunting submarines; Lockheed Martin just agreed to buy it for a cool $3.45B. (Read) 

Smart move. 

What happens deep in our oceans is a lot more critical than ya might realize for the simple reason that’s where undersea digital cables, oil and gas pipelines, and mineral deposits are all located. 

War, terrorism and ugliness are growth industries. 

I find that tremendously unfortunate, but I don’t have the luxury of letting that interfere with my thinking in my capacity as an investment strategist.  

Keith’s Investing Tip: Invest in companies making products and services that are “must have” because that’s one bill customers – including the US government – will rarely stop paying. 

4 – Micron to $2,200? 

Melius Research just boosted Micron’s target from $700 to $2,200. (Read) 

It’s already trading at $1,013, and has been for some time so I have to imagine the firm’s clients are thinking “thanks for nothing” but that’s moot. 

What you really want to take into consideration is that PwC (and others) now estimate that the global AI market could be nearly $16T. Sixteen TRILLION. 

I maintain that figure is low. 

Not for nothing, my research suggests $20T or more. But hey, I’ve been ahead of the party for some time. 

In fact, I told CNBC anchors Kelly Evans and Tyler Mathisen several years ago that AI was very likely the greatest single investing opportunity in human history. Both were surprised. (Watch) 

Now the narrative is catching up - and I still think it’s understated. 

Keith’s Investing Tip: Many people long for the world that once was because it makes ‘em comfortable. MyPOV is that you want to invest for the world that will be even if that makes you decidedly uncomfortable.  

5 – All space, no nosebleed 

Everybody is chasing SpaceX — and I think that's a smart move for long-term investors — but I think Rocket Lab is already executing at a fraction of the size and price. Plus, there's no Musk-concentration risk and no nosebleed multiple. 

What’s more, I think there are several catalysts built in but not yet priced in: Iridium, Neutron, SDA $816M contract, National Security Space Launch Program.  

I could see the stock revisiting $150 a share in 12-24 months which implies 50% upside give or take. 

You? 

Bottom Line 

Investing is about focus, not noise. 

• Plan 

• Execute 

• Adjust 

• Repeat 

Now and as always, let's MAKE it a great day and start to the week. 💯 

You got this — I promise! 

Keith 😀