Melius Research: “Buy the chip dip, skip hyperscalers” until AI payoff becomes c

Reitzes rates NVIDIA and Micron as buys; Micron trades at just 11x forward earnings despite beating consensus by 40% and surging 325% year to date.

Microsoft has dropped 24% year to date while CapEx surged 84%, and Alphabet's free cash flow collapsed 47% as key AI talent fled to rivals.

Reitzes calls compute 'the oil of the AI era' and says to call him when hyperscalers resolve their consumption versus subscription monetization mess.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Melius Research's head of tech research, Ben Reitzes, told CNBC to lean into chip-stock weakness and stay clear of the cloud giants paying for the buildout. "I'm telling them to buy on the dip. These have been opportunities in the past, and we just don't really see any change," Reitzes said. His list of buys covers Nvidia, Broadcom, Micron, AMD, and Dell, while Microsoft, Oracle, and Google are on hold until their AI monetization model becomes legible.

The framing matters because the broader debate has shifted from whether AI demand exists to whether the spenders can ever earn it back. Reitzes argues the answer is to own the sellers of

Fuente original: Yahoo Finance (https://finance.yahoo.com/technology/ai/articles/melius-research-buy-chip-dip-201917445.html)