Stacy Rasgon: “Demand Is Off The Charts” in Semiconductors… And Set To Double Again Soon – Monetary Matters with Jack Farley

Stacy Rasgon: “Demand Is Off The Charts” in Semiconductors… And Set To Double Again Soon – Monetary Matters with Jack Farley — Transcript

Market views

Bullish

NVDA— Nvidia expected to grow revenue 70%+ next year with potential for 100% growth if infrastructure constraints ease. Trading at low teens forward P/E despite strong demand visibility and tight supply constraints supporting pricing power.
AVGO— Broadcom guided to 100% revenue growth in both 2025 and 2026, with potential earnings over $30 by 2028. Stock trading at 11-12x forward earnings if targets are met, representing significant upside if AI infrastructure buildout continues.
AMAT— Applied Materials positioned to benefit from semiconductor capital equipment spending expected to grow from $150B in 2026 to over $250B in 2028. Company has strong DRAM exposure which is critical for high bandwidth memory used in AI chips.
LRCX— Lam Research well-positioned for semiconductor equipment spending growth with strong diversification away from NAND dependence. Company successfully navigated prior memory downturns and maintains leadership position in critical etch and deposition processes.
KLAC— KLA positioned to benefit from semiconductor capital equipment spending growth expected to reach $250B+ by 2028. Part of the big five semi cap companies with strong fundamentals across the sector.
AMD— AMD positioned to capture meaningful AI revenue with potential for $40-50B in AI-related sales next year. Market large enough for multiple winners alongside Nvidia, with AMD benefiting from strong CPU demand and GPU ramp.
MU— Micron positioned to benefit from tight memory supply expected to persist through 2027-2028. High bandwidth memory (HBM) requires 3-4x more wafers than standard DRAM, creating structural supply constraints while demand remains strong.
AIINFRA— AI infrastructure buildout expected to reach $1.5 trillion in hyperscaler spending next year, with Jensen Huang's $3-4 trillion annual forecast by end of decade appearing increasingly credible. Evidence of ROI materializing through rental capacity, revenue growth, and consumer use cases.
INTC— Intel showing improvement under new CEO Lip Bu Tan with strong server demand offsetting product competitiveness issues. Foundry narrative improving, packaging revenue opportunities emerging, and cost structure being rationalized after years of underperformance.
POWER— Power infrastructure represents a major constraint on AI buildout, with electrical grids unable to support adding tens or hundreds of gigawatts annually. Behind-the-meter power generation and on-site solutions becoming critical enablers for data center expansion.

Not investment advice.

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Market views