Sell the Chips, Buy the Hyperscalers: Is Morgan Stanley's Rotation Call Real?

Sell the Chips, Buy the Hyperscalers: Is Morgan Stanley's Rotation Call Real?

Morgan Stanley's Mike Wilson is telling clients to get out of chip stocks and rotate into the hyperscalers. This morning I walk through whether this rotation is real or just too soon to call. Semis are getting whacked today with Micron, AMD, Broadcom, and Nvidia all selling off, and even Caterpillar and Lam Research are getting hit after their huge runs. Meanwhile financials, transports, healthcare, and biotech are hitting all time highs, with names like Travelers Insurance, Union Pacific, and Eli Lilly ripping. Wilson thinks semis just need a breather and it is the hyperscalers turn to lead. My take is the same as always: it is too soon to proclaim this is the trade for the rest of the year, and the best way to play it is to just own the QQQ so you do not have to pick the leaders. I also cover the SpaceX Nasdaq 100 inclusion and why the free float cap means you will not be as exposed as the headlines suggest, a Palantir price target of $341 built on 2028 free cash flow estimates, and why I still find the SpaceX story boring compared to names like GE Aerospace and TransDigm. Rigatoni Capital is a daily morning podcast for long term, buy and hold investors. This is not a show for short term traders or people looking for quick wins. Every morning I go through the most important headlines in finance, markets, and macro, and call out fake narratives in the financial media so you know what actually deserves your attention and what to ignore. Subscribe to Rigatoni Capital on Substack: https://rigatonicapital.substack.com [https://rigatonicapital.substack.com] Disclaimer: This blog is for informational purposes only and does not constitute financial advice. All opinions are my own, and I am not a financial advisor. The information provided reflects my personal views and is intended to encourage discussion and thought among readers. Investments involve risk, including the loss of principal, and past performance is not indicative of future results. Always conduct your own research or consult with a qualified professional before making any financial decisions. #investing #stocks #finance #wallstreet #stockmarket #investor #wealth #money #financialfreedom #passiveincome #dividends #compounding #longterminvesting #buyandhold #valueinvesting #portfoliomanagement #bitcoin #crypto #macro #Nasdaq #SPY #QQQ #SP500 #MikeWilson #MorganStanley #Hyperscalers #Semiconductors #Micron #Nvidia #NVDA #Broadcom #AVGO #Caterpillar #CAT #LamResearch #LRCX #SpaceX #Palantir #PLTR #stockanalysis #marketwatch #RigatoniCapital $QQQ $NVDA $AVGO $CAT $LRCX $MSFT $AMZN $META $PLTR

Software Job Cuts, Funky Earnings, and Why I'm Not Trimming Caterpillar

We are heading into the dog days of summer with the World Cup on and earnings still a few weeks out. I talk about why the current SaaS software selloff reminds me of the 2022 bear market. I also explain why the AI disruption story hits the stock price first and the job cuts come later. I also flag some funky GAAP accounting to watch, where companies like Amazon have to book gains on their private stakes in Anthropic, which can juice net income. I reviewed my portfolio heading into July and decided not to trim Caterpillar or Lam Research despite both being up huge, because I have always seen them as the ultimate picks and shovels of this build-out. I close with some thoughts on Alex Karp's CNBC interview and why Palantir and the frontier labs are two different worlds. Rigatoni Capital is a daily morning podcast for long term, buy and hold investors. This is not a show for short term traders or people looking for quick wins. Every morning I go through the most important headlines in finance, markets, and macro, and call out fake narratives in the financial media so you know what actually deserves your attention and what to ignore. Subscribe to Rigatoni Capital on Substack: https://rigatonicapital.substack.com [https://rigatonicapital.substack.com] Disclaimer: This blog is for informational purposes only and does not constitute financial advice. All opinions are my own, and I am not a financial advisor. The information provided reflects my personal views and is intended to encourage discussion and thought among readers. Investments involve risk, including the loss of principal, and past performance is not indicative of future results. Always conduct your own research or consult with a qualified professional before making any financial decisions. #investing #stocks #finance #wallstreet #stockmarket #investor #wealth #money #financialfreedom #passiveincome #dividends #compounding #longterminvesting #buyandhold #valueinvesting #portfoliomanagement #bitcoin #crypto #macro #Nasdaq #SPY #QQQ #SP500 #Caterpillar #CAT #LamResearch #LRCX #Microsoft #MSFT #SoftwareStocks #AIDisruption #Palantir #PLTR #AlexKarp #Nvidia #NVDA #Broadcom #AVGO #stockanalysis #marketwatch #RigatoniCapital $QQQ $CAT $LRCX $MSFT $PLTR $NVDA $AVGO

Buy in June and Go Away

Micron reported last night and the stock is swinging hard, which is exactly the kind of summer volatility that gets friends and family texting me asking what to do. My answer this year is simple: buy in June and go away. I bought the QQQ at $687 during the early June flush down and I am not making any more moves. This morning I talk about why the Nasdaq 100 is now my largest holding and why, at age 42, I would rather buy the QQQ on a pullback than try to pick individual Mag 7 winners that keep underperforming the index. I also give my honest take on the Bitcoin selloff, why it is down over 50% from its peak, and why nothing has changed for me on owning it as the best form of money. I close with an interesting theory on Kevin Warsh, Scott Bessent, the eSLR change, and whether banks buying Treasuries can fill the void of a shrinking Fed balance sheet. I am on vacation until July 8th so I will not be doing the daily show, but I will pop on a few times and get a newsletter out. Rigatoni Capital is a daily morning podcast for long term, buy and hold investors. This is not a show for short term traders or people looking for quick wins. Every morning I go through the most important headlines in finance, markets, and macro, and call out fake narratives in the financial media so you know what actually deserves your attention and what to ignore. Subscribe to Rigatoni Capital on Substack: https://rigatonicapital.substack.com [https://rigatonicapital.substack.com] Disclaimer: This blog is for informational purposes only and does not constitute financial advice. All opinions are my own, and I am not a financial advisor. The information provided reflects my personal views and is intended to encourage discussion and thought among readers. Investments involve risk, including the loss of principal, and past performance is not indicative of future results. Always conduct your own research or consult with a qualified professional before making any financial decisions. #investing #stocks #finance #wallstreet #stockmarket #investor #wealth #money #financialfreedom #passiveincome #dividends #compounding #longterminvesting #buyandhold #valueinvesting #portfoliomanagement #bitcoin #crypto #macro #Nasdaq #SPY #QQQ #SP500 #Micron #BuyTheDip #Mag7 #Bitcoin #BTC #KevinWarsh #FederalReserve #eSLR #Apple #AAPL #Nvidia #NVDA #stockanalysis #marketwatch #RigatoniCapital $MU $QQQ $NVDA $AVGO $AAPL $GOOGL $BTC

Own What the Chips Produce, Not Where They Reside: Jim Chanos on the AI Trade

Jim Chanos was on the Monetary Matters podcast this weekend. He is net long AI through the index and short what he calls the financialized middle layer, the NeoCloud plays like CoreWeave that he views as equipment leasing finance companies with mid single digit returns on capital. Own what the chips produce, not where they reside. I also cover Jordi Visser's take on the CapEx air pocket he thinks is coming, why Chinese open source AI models are within six months of the frontier without top end Nvidia chips, and what that means for the LLM commoditization story. Micron also reports this week and is hitting all time highs going into the print. Rigatoni Capital is a daily morning podcast for long term, buy and hold investors. This is not a show for short term traders or people looking for quick wins. Every morning I go through the most important headlines in finance, markets, and macro, and call out fake narratives in the financial media so you know what actually deserves your attention and what to ignore. Subscribe to Rigatoni Capital on Substack: https://rigatonicapital.substack.com Disclaimer: This blog is for informational purposes only and does not constitute financial advice. All opinions are my own, and I am not a financial advisor. The information provided reflects my personal views and is intended to encourage discussion and thought among readers. Investments involve risk, including the loss of principal, and past performance is not indicative of future results. Always conduct your own research or consult with a qualified professional before making any financial decisions. #investing #stocks #finance #wallstreet #stockmarket #investor #wealth #money #financialfreedom #passiveincome #dividends #compounding #longterminvesting #buyandhold #valueinvesting #portfoliomanagement #bitcoin #crypto #macro #Nasdaq #SPY #QQQ #SP500 #JimChanos #JordiVisser #AIstocks #Semiconductors #Micron #CoreWeave #NeoCloud #OpenSourceAI #China #DeepSeek #Nvidia #NVDA #Broadcom #AVGO #stockanalysis #marketwatch #RigatoniCapital$QQQ $NVDA $AVGO $LRCX $PLTR $MU

Kevin Warsh Said a Whole Lot of Nothing: Markets Have Knee-Jerk Reaction

Note: My screen was not sharing during today's recording. Apologies to everyone watching on YouTube. Kevin Warsh held his first press conference as Federal Reserve Chair and said a whole lot of nothing. Yes, he used some hawkish language around price stability, yes the dot plot leaned hawkish, and yes he mentioned task forces looking into the inflation target and the federal balance sheet. But task forces are a stalling tactic. Anytime a new Fed chair creates a committee to study something, that means he is buying time. The market sold off hard and then recovered overnight, which is exactly what you would expect from a knee-jerk reaction to a new Fed chair saying words. I also cover the AI job cut wave quietly happening in the background, why Broadcom and Lam Research are hitting new highs again like Tuesday never happened, Lloyd Blankfein day trading on his iPad like an 18-year-old, and Becky Quick's quietly impressive investing philosophy of being 100% in stocks with no bonds. Rigatoni Capital is a daily morning podcast for long term, buy and hold investors. This is not a show for short term traders or people looking for quick wins. Every morning I go through the most important headlines in finance, markets, and macro, and call out fake narratives in the financial media so you know what actually deserves your attention and what to ignore. Subscribe to Rigatoni Capital on Substack: https://rigatonicapital.substack.com [https://rigatonicapital.substack.com] Disclaimer: This blog is for informational purposes only and does not constitute financial advice. All opinions are my own, and I am not a financial advisor. The information provided reflects my personal views and is intended to encourage discussion and thought among readers. Investments involve risk, including the loss of principal, and past performance is not indicative of future results. Always conduct your own research or consult with a qualified professional before making any financial decisions. #investing #stocks #finance #wallstreet #stockmarket #investor #wealth #money #financialfreedom #passiveincome #dividends #compounding #longterminvesting #buyandhold #valueinvesting #portfoliomanagement #bitcoin #crypto #macro #Nasdaq #SPY #QQQ #SP500 #KevinWarsh #FederalReserve #BeckeyQuick #LloydBlankfein #Broadcom #AVGO #LamResearch #LRCX #Micron #MU #AIjobs #stockanalysis #marketwatch #RigatoniCapital $AVGO $LRCX $MU $QQQ $AAPL