1.
$Amazon.com(AMZN)$ is the cheapest mega-cap stock now.
It’s only up 30% since 2020 despite doubling the revenue.
It has grown into its overvaluation.
Now it’s cheap again, trading at just 19 times operating cash flow.
The stock didn’t move because the market believes that AWS is losing the AI infrastructure race as its growth lagged other hyperscalers.
However, AWS will reaccelerate as Anthropic’s gigawatt scale Trainium clusters start operation this quarter.
Once AWS accelerates, the market will reprice it.
Long $Amazon.com(AMZN)$ .
Dark-themed financial chart from TrendSpider displaying Amazon AMZN weekly stock performance from 2021 to 2025 with candlestick patterns in green and red, price scale on right from 80 to 220 dollars, volume bars below, and bottom panel showing green bars for quarterly operating income from Q2 2021 to Q1 2024 with values like 76.54 and 36.85.
2.
$NVIDIA(NVDA)$ says AI infrastructure spending will reach $4 trillion by 2030.
Everybody naturally focuses on NVDA but AMD has much more room to grow into this TAM.
Assume 1/4 of the money will be spent on chips, that’s $1 trillion.
Even if AMD captures just 15% of it, it’ll generate $150 billion revenue.
At 40% net margin and 25x exit multiple, we’ll get a $1.2 trillion company.
It’s valued just at $375 billion now.
Long $Advanced Micro Devices(AMD)$ .
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