Jose Najarro Stocks

AMD Gains as Intel Faces Supply and Competitiveness Challenges

"Now, for AMD, they just uh for Intel, they just reported earnings. And the reason I want to talk about them is because they did share a lot of great insight for what AMD investors should know. So, in forms of the bullish things, the transcript contains bullish signals for AMD, primarily centered on Intel's severe supply constraints, uncompetitive data center products, and poor profits on new products, which creates a massive immediate opportunity for AMD to continue to take market share. First, Intel states that they cannot meet demand for their products, particularly on older nodes, leaving an open door for AMD's Ryzen and Epic products."

The speaker highlights Intel's recent earnings as a backdrop for AMD's competitive advantage. Intel's admission of supply constraints and uncompetitive data center offerings is positioned as a catalyst for AMD to capture market share in both the server and mainstream PC segments, reinforcing a bullish outlook for AMD.

AMD Valuation and Earnings Growth Catalysts

"Next, I want to take a closer look at AMD's forward PE ratio, and it's currently at 50, where the median is roughly 32.78. Now, this seems pretty high and some investors might say, "Jose, this is looking a lot like January 2024 when we saw the stock and we can actually even look at the past five years." January is when the stock started going up like crazy and you kind of peaked and then you saw this massive downturn, right? So, some investors were saying, "Look, it's starting to look like this again where you're just having crazy valuations and then what's going to happen is you're going to have a massive, massive pullback." But I think there is a big difference right now. Right now AMD stock has seen a massive run up because of two things. First is obviously the OpenAI deal. The second, in my opinion, is that massive order from Oracle. I would say it's a little bit different here than where we were in January of 2024 because this runup actually has a probability to see massive growth in earnings. I mean, Lisa Sue mentioned with the OpenAI deal that you can expect billions of dollars and both accredited to earnings with these recent deals with OpenAI."

The speaker reviews AMD's high forward PE ratio relative to its historical benchmark and explains that unlike previous high-valuation periods, the current run-up is driven by significant catalysts, including an OpenAI deal and a large Oracle order. These factors are expected to drive earnings growth and narrow valuations in the near future.

Nvidia Buy Trigger on Price Drop Condition

"Now for AMD and Nvidia, I tend to look more at forward or next 12 months PE ratio. Now while both are subject to dollar cost averaging, my call for Nvidia is more explicit: if right now Nvidia is sitting at 32.64, then if we get in the 29s, 28, its super attractive. If we get anywhere near the mid20s, that1s an extremely extremely heavy buy position for me. I would consider these levels as key triggers for entering or increasing my positions."

The speaker outlines an actionable trade call for Nvidia. He indicates that if the stock, currently around 32.64, drops into the high 20s or mid-20s, it becomes a strong buying opportunity, signaling a clear entry point to scale into or increase positions.

Bullish Commentary on Broadcom

"Now, this is also really strong for Bracom, ticker AVGO. We can see after hours the stock is up roughly 1.6%. The reason this is very bullish for Bracom is Bracom is the one that helps Google kind of build these chips, not the manufacturing but the design process and they get a form of fee because of it."

The speaker offers a bullish commentary on Broadcom (AVGO), highlighting its after-hours performance and its key role in enabling Google to design chips, which is seen as a strong positive catalyst for the stock.

Buy Opportunity on Amazon Dip

"Now questions here for Amazon and Marll. Am I worried about Amazon? Are people going to say, "Look, is this compute loss that Amazon could have gotten from Anthropic?" In theory, yes. If Amazon sees a negative reaction to this, I would gladly want to buy the dip, right? Amazon is one of my favorite Mac 7s right now in forms of valuation. I don't own it, but it's one I really, really do enjoy these levels. And any drop in my opinion below 215s into the 210s is a definite buy opportunity for me if I had cash in my portfolio right now."

The speaker expresses a clear trade call on Amazon, stating that any dip below the 215-210 range represents a buy opportunity, reflecting confidence in its valuation and potential for recovery amidst market reactions.

Intel Earnings Excite With Demand Outpacing Supply

"Now, the final thing I want to take a closer look at is Intel. Intel is up roughly 8.1%. I will be covering their earnings on a deeper dive later tonight, but on the top level, they mentioned that for 2026, demand is outpacing supply, which is crazy. There were some exposts going around. They talked about it both in the data center side and in the consumer side. Current demand is outpacing supply, a trend we expect will persist into 2026. For the first time, it got me excited about earnings overall for some of my big players."

The speaker discusses Intel's strong performance, noting an 8.1% rise and robust demand outpacing supply across both consumer and data center segments. This exciting performance, unusual for Intel, suggests potential further earnings strength heading into 2026.

Super Micro Earnings Guidance Raises Caution Amid Potential Upside

"Now, I want to jump into Super Micro. So, Super Micro right now is down roughly 8.7% for the day. Unfortunately, today Super Micro provides first quarter of fiscal year 2026 update. The revenue that they expect for this quarter is going to be $5 billion versus the 6 to 7 billion guidance. They mentioned they're seeing robust demand on the GB300, the B300, and even AMD's 355X liquid cooling, which is already shipping right now. To calm nerves, they do mention that they continue to see customer demand accelerating and they are reiterating revenue of at least $33 billion for fiscal year 2026."

The speaker highlights Super Micro's disappointing first quarter update with revenue expectations falling short of guidance, while noting strong demand for new products and significant design wins that could drive a rebound in the next quarter. There is underlying caution concerning potential margin pressure if older models are discounted.

Nvidia Partnership with Uber Offers AI Data Advantage

"All right. So, first let's start off here with Nvidia. Nvidia up roughly 1%. Uber was up roughly 2.6% and at one point it hit almost $95 after it announced uh it wasn't necessarily a partnership is both that Uber and Nvidia are working together to so that's exactly a partnership are working together to help develop and improve the foundation model uh the world foundation model for autonomous vehicle and for training. One thing that I found pretty interesting was that this was posted previously on Nvidia's Drive X account, but just before I started recording the episode, the post isn't there anymore."

The speaker discusses Nvidia's recent collaboration with Uber, highlighting Nvidia's efforts in developing a foundational AI model for autonomous vehicle training using Uber's data. The commentary underscores the potential growth in physical AI, though it notes an unexplained removal of a related post on Nvidia's account.

Lamb Research Overvalued - Avoid Adding at Current Prices

-2.76%current return

"Now, I do believe Lamb Research had really strong earnings. I actually like them a lot and I believe there's a lot of growth opportunities. But why did the market not like it or why is the market not reacting as strongly? In my opinion, it's this. This is definitely a stock that is trading much higher than it normally does. So, the median forward PE ratio in about the past 5 years is roughly 20.35. Now, right now, the stock is trading at roughly 31.52. If I was honest, Lamb Research has definitely growth opportunities, but I think the risk-to-reward ratio is not in my favor. So, if I wanted to add to Lamb Research, this is not the time I would do so."

The speaker highlights Lamb Research's strong earnings and growth potential yet cautions investors against buying at current levels due to an overvalued trading price compared to historical PE ratios, indicating an unfavorable risk-to-reward scenario.

No Add-On at Current Levels for TSLA

+3.48%current return

"I'm not buying the small dip. And if I was buying a Mac 7, I don't think Tesla would make even the top three of my list right now. I definitely would put other Mac 7s on the top three over Tesla."

The speaker states a clear reluctance to add to his Tesla (TSLA) position, indicating that despite some growth prospects, he would avoid buying even at a dip, preferring other choices over Tesla at current valuation levels.

Galaxy Infrastructure Risk: Dependency on Single Customer & OpenAI

"Now if I was a Galaxy shareholder, I don't know how excited I would be if one customer pretty much produced my whole AI infrastructure market. And the CEO mentioned that eventually there's going to be some form of pullback because of too much capex, with timing uncertainty of 3 months to 3 years. He also warned about system dependency on OpenAI, stating that OpenAI is the lynch pin of the AI ecosystem and its failure would cascade through the high performance computing demand chain. These risks could directly affect Helios' revenue stream and the overall growth potential of the company."

The speaker highlights significant risks for Galaxy Infrastructure, noting an overreliance on a single major customer and a critical dependency on OpenAI. He warns of a potential AI bubble pullback due to excessive capex, which may adversely impact future revenues, urging caution for current shareholders.

Excitement for Nebus and a Put Selling Strategy

+18.97%current return

"Now, the final stock is Nebius and I am actually pretty excited for it right now. With ambitious plans to scale from 220 megawatts of connected power by the end of 2025 to 1 gigawatt by the end of 2026, and having recently inked a multi-billion dollar deal with Microsoft, Nebus is on a rapid growth trajectory. I am considering selling puts at levels below 100 to potentially acquire the stock at around 95, which would offer an attractive entry point given the companys expansion and funding background."

The speaker expresses strong enthusiasm for Nebus, citing its aggressive capacity expansion goals and a significant partnership with Microsoft. He reveals an actionable strategy of selling puts below $100 to secure an even lower effective purchase price, positioning this as an attractive trade given the company’s growth prospects.

Accumulating Coreweave on a Discount

+8.84%current return

"Now, turning to Coreweave, I would be more inclined to heavy dollar cost average if the price falls below 100, a medium approach between 100 to 115, and practically no new buying above 120. Coreweave has been executing very well with major deals from Meta and OpenAI, and its capacity expansion is unparalleled. It has a massive power base coming online and is positioned to build out the largest AI infrastructure. I believe in its long-term potential, envisioning it as a multibagger that could be valued at $200 billion in the next five years."

The speaker clearly outlines a structured approach to buying Coreweave, recommending heavy accumulation if the stock dips below $100 due to its strong market position and capacity expansion. He emphasizes the company's competitive advantages and long-term multibagger potential.

Cautious Stance on Oracle Due to Valuation Convergence

-3.91%current return

"Now I'm going to talk about Oracle and why this is my third favorite out of the three and why I'm personally not buying much of this one if any. Oracle historically traded at very low valuations, but now, with valuations converging with higher-flying stocks like Microsoft, the mispricing is gone. I still own some Oracle, but it's not the one I'm most excited about. I would only consider a more aggressive buying approach if the stock drops below 260, which would signal a better risk-to-reward scenario."

The speaker explains his cautious outlook on Oracle, noting that although Oracle still has growth opportunities in the AI infrastructure market, its valuation no longer provides the mispricing advantage seen previously. He suggests a very conservative, small dollar cost averaging approach, only considering additional positions if the stock dips below 260.

Selling $100 Puts on Nebus as a Dollar-Cost Averaging Strategy

-3.36%current return

"For Nebus, I really do enjoy the put selling strategy. I think you can sell a $100 put for around a $7-$8 premium with 15 to 17 days until expiration; if it goes below $100, I’d end up paying roughly $9 to acquire shares. If it doesn’t, I simply keep the premium. It’s a neat way to accumulate shares at a lower cost during these pullbacks, especially since I wouldn’t mind owning more even if the price drops further."

A clear actionable trade call is made regarding Nebus through an options strategy. The speaker outlines selling near-term $100 puts to either collect premium or acquire shares at a lower effective price, serving as a dollar-cost averaging tactic in a volatile market.

AMD's Progress and OpenAI Deal Implications

"I mean, we’ve been talking about AMD at $100 for the last couple of months and now they’re getting the recognition they deserve with major shipments of MI450 orders announced by Oracle. On one hand, the OpenAI-related deal offers up to a 10% equity play if targets are met, with potential milestones culminating at a $600 valuation threshold. While this deal isn’t going to send AMD to a trillion overnight, the jump in investor sentiment following these announcements is clear. It’s exciting to see AMD being acknowledged on the inference and software sides as well."

The panel highlights AMD’s recent catalysts, including MI450 shipments and the OpenAI-related equity arrangement. Although price targets like a $600 milestone are discussed, the overall tone remains cautiously optimistic, driven by both product recognition and evolving software capabilities.

Oracle's Exponential Growth Guidance in AI Infrastructure

"Oracle shared its AI infrastructure delivery example by outlining a road map where Oracle Cloud revenue should grow from $10 billion in fiscal 2025 to $166 billion in fiscal 2030. They broke down costs into 35% for land, data center, and power, and 65% for compute, network, and storage. The numbers are described as insane, and if Oracle can pull these targets off, the stock would be extremely cheap today. However, failure to meet these numbers could result in a significant variance against consensus."

Speakers examine Oracle's ambitious guidance for its cloud revenue growth fueled by AI infrastructure, emphasizing the potential upside if targets are met while cautioning about the risks if there are execution missteps. The detailed cost breakdown and multi-year roadmap provide investor clarity on long-term valuation.

Coreweave Acquisition Pricing and Contract Debate

"For Coreweave, I think the market is going to react negative if the acquisition doesn't go through. But if they increase the price, it no longer justifies the rationale because you’re essentially raising billions to save only millions. At the end of the day, they already have massive contracts in place, so an elevated acquisition price would ruin the deal’s logic. Worst-case scenario, if the deal fails, Core Scientific shareholders could see their stock drop significantly over time. Conversely, if the acquisition goes through at the predefined price, it remains a multibagger opportunity over the long term."

The speakers discuss the potential impact of a Coreweave acquisition pricing adjustment, noting that an increased deal price would undermine the economic rationale of the acquisition and could result in a prolonged decrease in the stock’s value if the deal falls apart. However, if executed at the agreed price, it could yield long-term value.

Volatile Upswing and Risk in Navitas

"s gotten very much excited because of recent Nvidia news and vision 800 volt data center solutions. They do have earnings coming up within when is Na"

The speaker notes that Navitas experienced a significant 16% upswing, fueled by Nvidia-related news and upcoming earnings. However, they caution that if management does not generate sufficient excitement about its partnerships, the stock could see a sharp decline, reflecting inherent volatility.

Negative Sentiment on Oracle's Open AI Deal

"Oracle here uh was down roughly 4.5 4.8% almost 5%. The main reason we did get in over the weekend and today some analysts may be not being as bullish anymore on the open AI deal due to the amount of debt. This company needs to raise the amount of risk of having the concentration on just open AI and it's creating this negative sentiment towards the AI infrastructure players."

The speaker conveys a bearish outlook on Oracle, citing concerns over an open AI deal burdened by significant debt and a risky concentration in open AI. This commentary suggests that the negative sentiment around Oracle could persist in the short term.

Bullish AMD Trade Call via Dollar Cost Averaging

+8.45%current return

"So, I am getting very very excited about the stock. For me though, right now it is more of a dollar cost average opposed to loading the boat. Regardless, I think AMD in the long term of things in the next few years has a map laid out, not a guarantee, but a map layout to hit a trillion dollar company that's still a three bagger from here. This is coming from someone who's bullish on AMD and it's been bullish for a very long time. This is already a multi multibagger for me. But again, the market gives us opportunity. So, I wouldn't rush all at once."

The host expresses strong bullish sentiment on AMD, highlighting its long-term growth potential as a multi-multibagger and even a trillion-dollar company. He advises a dollar cost averaging approach rather than lump-sum buying, suggesting caution while remaining optimistic about future gains.

Avoid Salesforce Amid Weak AI Partnership Sentiment

-7.71%current return

"Salesforce announced that they were partnering with ChatGPT and bringing OpenAI's frontier models into unified experiences through their Agent Force 360. This is one of the first few times I have seen an OpenAI partnership coincide with the stock dropping, which makes it seem like the aggressive confidence previously projected by Salesforce was unwarranted. They still need to come back and execute a compelling AI strategy, and honestly, it makes Salesforce appear more like a white flag than a value opportunity. Personally, I don’t want to own Salesforce anytime soon."

The speaker expresses skepticism regarding Salesforce following its new partnership with ChatGPT, noting that instead of boosting investor confidence, the move has led to market weakness. This casts doubt on Salesforce’s ability to lead in the AI space, leading to a recommendation to avoid the stock.

Bullish Trade Call on AMD Due to Oracle GPU Order

+5.96%current return

"The biggest news is actually something happening with AMD. So AMD was pretty happy earlier today after a pullback, and Oracle announced a massive initial deployment of AMD's MI450 series GPUs with an order for 50,000 units starting in Q3 of 2026 and expanding into 2027. I do believe AMD is on its way to be a trillion dollar company in the next five years owing to this rack scale solution that integrates CPU, GPU, and other components to drive revenue per system. This order, along with the momentum from previous partnerships, makes the future revenue potential look underestimated by current analyst estimates."

The speaker highlights a significant deployment order from Oracle for AMD MI450 GPUs, viewing it as a major catalyst for AMD. This endorsement is backed by the potential to drive integrated revenue and a long-term vision of AMD reaching trillion-dollar market value, making it an attractive buying opportunity.

Research Opportunity in Intuitive Surgical for AI-Driven Medical Robotics

"The second one I really want to do more research on is Intuitive Surgical. This is a company that deals with the robotics market. They have a lot of data with their sensors and I believe that actually puts them in a really great direction for the AI in the medical field. I think that's very important. Year to date, the stock is down roughly 17%. This stock has been very expensive, but I believe the age of robotics, AI, and medicine is coming really soon for some massive growth opportunities."

The speaker highlights Intuitive Surgical as a company worthy of further research due to its potential to benefit from AI developments in the medical robotics field, despite a significant year-to-date decline. He suggests that the convergence of robotics, AI, and healthcare could drive substantial growth in the future.