Stephanie Roth at Wolfe Research argues the AI capital expenditure cycle has substantial runway ahead with no signs of a bubble forming. – Micron Technology (MU) reports earnings Wednesday with 97.35% probability of another beat due to critical high-bandwidth memory demand for…
training and inference. – Micron’s prior quarter revenue of $23.86 billion beat consensus by 22.28% with non-GAAP EPS of $12.20, establishing the earnings bar for sustained AI demand validation. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn’t make the cut. Grab the names FREE today
Stephanie Roth, chief economist at Wolfe Research, argued on a CNBC Morning Call that the AI capex cycle has runway, geopolitical risk is being absorbed by the stock market, and the Federal Reserve can stay patient despite sticky inflation. Her view sets the tone for a week hinging on Micron Technology (NASDAQ:MU) earnings, Iran negotiations, and Fed signaling. “There is a lot of exuberance. There’s a lot of capital that wants to find the trades that are going to be setting the tone for the next decade and decades to come.
Our expectation is the AI trade can continue for a while longer. There are no signs right now that it’s entered any sort of bubble,” Roth said. She framed AI enthusiasm as backed by structural demand rather than speculation, pointing to a historic shift in capital allocation where companies, including SpaceX, are raising capital instead of buying back shares, signaling conviction in long-term tech investment.