AI Stocks are CRASHING: Here's What I'm Buying

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The video discusses the recent sell-off in AI-related stocks, attributing it to a potential slowdown in AI model development and infrastructure spending. Key semiconductor stocks like NVDA, AMD, MRVL, SMH, AVGO, MU, SNDK, TSM, INTC, and QCOM experienced significant declines. The analysis highlights a distinction between slowing AI model development and AI compute demand, suggesting that while model development might slow, the demand for compute power (inference) continues to grow. This is linked to the increasing complexity and memory requirements of AI models. The speaker expresses a contrarian view, suggesting the recent sell-off in AI infrastructure plays might be overdone and presents a short option strategy on DRAM (likely referring to a semiconductor ETF or stock) as a way to profit from potential sideways or slightly down movement, while limiting downside risk. The underlying thesis is that while AI development might slow, the demand for the underlying hardware, particularly memory and AI accelerators, remains strong due to the ongoing need for compute power and memory bandwidth for inference. Risks identified include a general AI CapEx slowdown, HBM supply catching up to demand, technology shifts, and ETF concentration, but the focus remains on the potential for a rebound in targeted AI infrastructure plays.

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