The AI Boom Is Splitting in Two - SpaceX, Micron and the New Winners

Melvin (0:00)

So for the last, however many years now, everything was about GPUs, and now with agents who are actually going and executing and doing work, it's not just complicated calculations, it's them actually going and browsing the internet and looking through pages and buying things and doing whatever. And so now we need more CPUs, and it appears, okay, there's a CPU shortage now, it's not just GPUs.

LGDUset (0:21)

What's up, everybody, it's LGDUset here, and welcome to Milk Road Stocks, a daily market show that told itself I'd buy more SpaceX before the unlocks, but clearly I've been waiting too long. Today is October 7th, 2026, recording on the 6th. Wasn't this AI trade supposed to be running out of steam soon? Because every time it looks like things might finally slow down, another bottleneck seems to show up. First it was GPUs, then power and memory. Now we're running out of CPUs, with lead time stretching to 25 to 30 weeks. On today's episode, our top AI analysts breakdown what this means for the next leg of the trade, why they're getting even more bullish on SpaceX, and whether Microsoft and Meta cutting their anthropic spending is actually a warning sign. Plus, Marvell just dropped a $400 billion AI infrastructure forecast while Micron put up another monster quarter and somehow still can't catch a bit. Then after the show, they are heading right into after hours, their 15-minute portfolio strategy session to show exactly how they're investing around all of this. You can check that out for just a dollar in Milk Road PRO at the link below. Otherwise, enjoy the episode.

Melvin (1:25)

All right, gentlemen, we're back for another round up.

It's still another crazy week. I feel like I say this every single week, but I feel like we're in a weird spot in the market. Certain assets are absolutely ripping to new all-time highs. Like Nvidia, TSMC, SpaceX is just on an absolute tear. But then other parts of the market are not really budging. There's a lot of fear in the market still.

There's just a lot going on. Let's go around the horn. Everyone, give your guys thoughts on what you think's going on overall in the market. Vincent, let's start with you.

Vincent (1:58)

All right.

To be honest, I think this was one of the most bullish weeks we got in a long time in terms of what data we got. The Micron earnings, to me, just proved that this is not a cyclical business and we have transparency into 2028 We had a chemicals company called Rogers that no one ever heard of. Even I did not and I was looking into CUNITY. They're coming out on their investor day saying, oh, by the way, we're going to 6X our EPS by 2030, which is not normal in the chemical side of things. We had Marvell today coming out saying, oh, we have a 400 billion AI 10 by 2030 stock up 10 percent. Then to put the Jerry on top, we had the Instinct CEO on Invest Like the Best saying, oh, I'm spending 40 percent of my time basically on compute allocation.

To me, this was really a reassuring week on this trade is going up for longer, and there's still money to be made in the AI infrastructure.

Melvin (3:02)

Yet rates are what, 10 years at like 5.3. I mean, oil has come down a bit now, but still sitting around 90, 100, more than 100 on Brent oil.

Martin, you've talked a lot about this. What's going on? Are you afraid still? Are you bearish?

Martin (3:20)

I am cautious. That's how I call it. But when I'm looking at S&P 500, the earnings in the last 12 months grew 37 percent, while the price of S&P only grew 16 percent. So the prices are not even catching up to the earnings growth we have seen over the last 12 months. And yet, I could argue that it's because the general multiples on the markets are going to be lower over time. And because until this point, the multiples were growing like the whole S&P, and because there's more money in the markets, and stuff like that. But with the AI stuff, like AI is disrupting a lot of things. And right now, I don't know if I'm willing to pay 20 P in multiples for a stock. Maybe the consensus going forward will be 15 or whatever, because we are less certain about the future.

Obviously, it doesn't kind of apply for all the companies. Like, if you look at Nvidia, it's hard to see someone disrupting Nvidia's business. But certainly the risks for other companies do not have as much earnings power as those giants and leaders in their markets. They might be under heavy pressure. So I don't want to be bearish. I'm not a doomer. I'm just cautious. And again, I have just 20 percent in cash. So I'm still very much exposed to the market.