Good morning, investors. Talking about the historic strength of the chip and semiconductor super-cycle is getting repetitive at this point.

But the biggest names in the space are proving too big to ignore.

On May 11 I wrote to you that Micron still looked cheap after doubling in a month.

The math still looks absurd today.

Micron just joined the $1 trillion club after a 19% one-day rally.

The high-bandwidth memory chip maker has become the standout trade for the AI supercycle, up 178% since March 30. That’s more than four times the return of Alphabet, the strongest Magnificent 7 name in the same stretch.

Even after an 832% one-year run, the stock still looks cheap at 8.62x forward earnings. 

That's barely a quarter of Nvidia's 30.5x and well below the S&P 500's 21x, making Micron the trillion-dollar cap with the cheapest multiple in mega-cap tech, according to an analysis by ProCap Insights.

This week, UBS lifted its price target for Micron to $1,626 on account of the supply constraints for memory that the likes of Nvidia and AMD won’t be able to engineer their way out of anytime soon. 

While more commoditized than scarce even just a year ago, high-bandwidth memory — Micron’s expertise — has become the most important bottleneck in the AI trade. 

It’s the same driver that pushed both South Korea’s memory companies SK Hynix and Samsung into the $1 trillion club this month, too. 

Given that those two names account for almost half the iShares South Korea ETF (EWY), the fund is up roughly 72% since March 30, easily outpacing the Magnificent 7 and the only asset within range of Micron. 

Nvidia is up 30% since that recent bottom, Apple 25%, Tesla 22%, Microsoft 16%, and Meta just 14%.

As solid as those numbers are, it’s clear the mega-cap AI trade has rotated from hyperscalers toward the picks and shovels. 

Indeed, when compute demand exceeds what leading-edge logic chips can absorb, the binding constraint moves to memory bandwidth.

Bears in this instance are pounding the table about chips being a historically cyclical business, with every major DRAM and NAND boom ending with oversupply and collapsing prices.

Yet today’s math does not point to a repeat of past boom-and-busts. The simplest conclusion may be the best one at this moment. Micron still looks cheap.

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📈 SK Hynix also joined the $1 trillion club. The South Korean memory chip maker surged 12% on Wednesday to hit the milestone without hours of Micron doing the same. SK Hynix and Samsung continue to carry the high-bandwidth memory trade. (Yahoo Finance)

🚀 Merger chatter for SpaceX and Tesla is heating up again. Elon Musk is pushing the rocket company to debut on the Nasdaq, and now reports are emerging that he is discussing internally the possibility of folding the two companies together. (CNBC)

🚢 The 10% global tariff could be coming back. The US’ top trade official said President Trump’s measure could be re-imposed once it expires in July, noting that the underlying statue doesn’t specify if the tariff can restart once its legal timeline expires. (WSJ)

Gina Martin Adams is the chief market strategist for HB Wealth. We sat down to unpack the most under-appreciated risks of the $1 trillion AI capex boom, the decoupling of stocks and bonds, why the market is ignoring inflation concerns, and more.

Tune in on Spotify, Apple Podcasts, or YouTube.

🗓 May 27, 1933: President FDR signed the Securities Act of 1933 into law, the first federal step to regulate the securities industry which laid the groundwork for the creation of the SEC the following year.

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