MU revenue grew 379% and is guided to a record $61.5 billion next quarter, yet the stock is down 16% since the sell-off and 28% from its June high, leaving it at only five times expected earnings. He calls this a great discount but flags an important warning and avoids overweighting memory before a likely cycle peak.

Micron is America's largest memory manufacturer , and its last quarter performed exceptionally well. Its revenues reached $54.2 billion , an increase of 379% year-on-year. The company expects to achieve a new record in the next quarter of $61.5 billion, an increase of approximately 350% over last year.

However, Micron's stock is down 16% since the start of the sell-off, and 28% from its June high. Therefore, the stock is now trading at only five times the expected earnings. I think this is a great discount, but it comes with an important warning.

The Chat fund also includes Celestica, Vertiv, TSMC, ASML, Coherent, Micron, SK Hynix and Broadcom, making it an excellent way to own the entire AI supply chain.

So, if you were to distribute your investments equally across the four funds , approximately 30% of your money would be in memory company stocks , with Micron being your largest investment.

The DRAM allocation is 10% because I already own a good stake in Micron and SK Hynix through Chat and SMH, and I don't want to overweight the memory in anticipation of us reaching the peak of the economic cycle.

Shares of TSMC, Micron, SK Hynix and Broadcom are trading at lower forward earnings ratios than the Nasdaq 100, while being among the fastest- growing companies in their respective sectors of the supply chain.