TRUTH EXPOSED: Anthropic is Crashing AI Stocks.. (What Does this Mean for Tesla Stock)
Overall Thesis
AI hardware stocks are crashing due to Anthropic missing revenue expectations and concerns about unsustainable off-balance sheet commitments by hyperscalers, which could trigger contract cuts and profitability erosion.
Narratives
He expresses bullishness on AMD specifically within the AI hardware space, believing it can keep accelerating growth for years and that the current hardware selloff could offer an attractive entry point.
Key Arguments
- States he is 'quite bullish' on AMD
- Believes AMD can accelerate growth for 'many years into the future'
SanDisk is cited as one of the hardest-hit stocks in the current AI hardware selloff, reflecting the broader fears around overbuilt infrastructure commitments.
Key Arguments
- Noted as down 9% on the day amid the AI hardware selloff, with further declines after hours
Meta is grouped among the hyperscalers whose off-balance-sheet lease commitments for AI data centers could balloon over the next year or two, pressuring profitability if AI spending doesn't generate expected returns.
Key Arguments
- Hyperscaler lease liabilities are expected to rise substantially as data centers under construction come online
- Part of the group of companies with large off-balance-sheet AI purchase commitments
Amazon is included among the hyperscalers with significant off-balance-sheet AI lease and purchase commitments that are contributing to broader market concerns about overspending on AI infrastructure.
Key Arguments
- Grouped among hyperscalers with large off-balance-sheet AI commitments and rising lease liabilities
Michael believes Tesla is set to benefit as capital rotates out of the 'old AI hardware trade' into what he calls the 'new AI trade' of robotics, automation, and AI software. He views any pullback in Tesla driven by hardware sector fears as a buying opportunity and states strong long-term conviction in the stock.
Key Arguments
- Believes capital will rotate from AI hardware/hyperscalers into robotics and automation names led by Tesla
- Views any Tesla selloff tied to hardware fears as amplifying the buying opportunity
- States he is 'very optimistic' on Tesla and holds a long-term $1000 price target
He views Nvidia as one of the more resilient AI hardware names that 'will survive no matter what' even if some hyperscaler contracts get cut. He frames next week's earnings as a major catalyst that could either calm or worsen the current AI hardware selloff.
Key Arguments
- Nvidia is expected to survive regardless of any contract cancellations from hyperscalers
- Upcoming Nvidia earnings seen as the key catalyst for the whole AI hardware sector's sentiment
He groups Micron among the AI hardware names he tells viewers to avoid due to crowded, FOMO-driven expectations, pushing back on the popular bullish narrative that the stock could multiply from current levels.
Key Arguments
- Pushes back on the consensus view that 'Micron's going to 5x from here' with PE expansion from 6 to 30
- Groups Micron within AI hardware/semiconductor names to avoid amid the current selloff
He flags Alphabet's close to a trillion dollars in total debt and off-balance-sheet AI commitments as a systemic risk factor being partially priced into rising 30-year Treasury yields, though he views the odds of an actual default or bailout scenario as minimal.
Key Arguments
- Alphabet has nearly $1 trillion in total debt and AI-related commitments
- Frames a hypothetical government bailout scenario as under 5% probability but still contributing to Treasury yield moves
Microsoft is cited as one of the hyperscalers carrying large lease liabilities and off-balance-sheet AI commitments that could weigh on profitability if infrastructure spending outpaces returns.
Key Arguments
- Grouped among hyperscalers facing rising lease liabilities tied to AI data center buildout
Hedges & Caveats
- INVEST AT YOUR OWN RISK AND NEVER LISTEN TO ANYTHING SAID IN THESE VIDEOS AS FINANCIAL ADVICE. BECAUSE ITS NOT.
- Stay away from FOMO
- Growth deceleration is natural as companies scale from small bases
- Hyperscalers cannot easily cut contracts due to structural dependencies