🚨New position alert🚨Bought this AI memory stock

Every year, around this time, we adjust and pivot our portfolio towards the next 12-18 months…yes, well in advance. This proactive strategy has enabled us to deliver market-leading returns which are posted here….an average annual return of +141% at a CAGR of +43%.

We are more than 60% allocated to the AI theme with a strong leaning towards GPUs, ASICs, AI networking and AI energy. In spite of the recent market chaos, we are still sleeping well at night…well ahead of all the indexes.

Today, we discuss our latest new position. We added this AI memory stock to our portfolio after conducting extensive research and analysis of the memory sector landscape and value chain. Yes, memory stocks are “cheap” by historic standards. The likes of Micron MU and Sandisk SNDK are minting money and counting their cash flows all the way to the bank. But then the recent leverage driven crash in the South Korean stock market (driven primarily by 2 memory stocks) gives us reason to be cautious.

The key question for investors is whether this crunch, this pricing power and these profits are sustainable in a notoriously cyclical industry.

If you want to follow our portfolio pivot journey…why and how we do it…read our latest post here, including links to our previous writings in this series. There is more work to do on this front…our portfolio is being tweaked in real time…so stay tuned.

Welcome to Beachman AI’s Investing Whispers, where we invest in market-leading stocks and ETFs with Beachman’s proven long-term record and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

Our chat line is open to all readers. Join in daily discussions about markets, investing and trading. Use this link to chime in on the conversation: Beachman’s Chat Line

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 8 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution.

We recently logged our 23rd multi-bagger stock and trade gains of up to +69%.

P.S. Stock Analysis (SA), my favorite financial research service, is offering a special discount exclusively for us. SA provides comprehensive, timely market data via a well-designed, easy-to-use experience and at a very attractive price point. Use the link StockAnalysis and the promo code “BEACHMAN” for an extra 10% discount.

• Beachman’s latest market whispers

• New position add - AI memory stock

• Beachman’s plan

• Conclusion

Here is what is top of mind for me these days in early August…

• The recent surge in riskier AI financing has surprised me….on two fronts 1. Solid companies like NVDA and AVGO are putting up their balance sheets as collateral for very large deals. 2. The companies being funded through these deals (e.g. OpenAI, neoclouds) still have to prove their business models. This is venture investing on steroids and the historical track record for such investing is not good…very few home runs…only 1 in 100 venture investments succeed.

• Things seem to have quietened down a bit in SK markets…perhaps taking a small break. But I dont think we are all clear as yet. Leverage issues usually take 2-3 flushes. Now it seems that Japanese and Singaporean investors might be heading the same way?

• I am now on the island (PR) and loving my beach time!

• I am still very concerned about the persistent rise of long term interest rates. Shenanigans, primarily by Bessent, continue…the most recent example being the US Treasury selling Euro bonds to supply Japan with US$ to shore up the falling Yen. This is a form of QE without calling it so. Soon enough, these dance moves will cause the shit to hit the fan in late 2026 or early 2027…the bond market will revolt and there will be a larger wash out in stocks. Winter is coming.

• We are through the bulk of the Q2 earnings season, but some more reports yet to come. Markets have not been forgiving for missing estimates, for not raising forward guidance, for dropping margins and cash flows. Interestingly, they have also not rewarded better than expected performances as much as before. These +/- 10% swings in stock prices are getting tiring and investors want to S.W.A.T. Sleep Well At Night.

• As I look at my stocks scorecard, many, many of the stocks that I follow seem overvalued…many AI and tech stocks are still priced for perfection through 2030…as if revenues and profits for the next 4-5 years are already on the books.

• Important: We have to keep an eye on election predictions starting in Sept/Oct. If the GOP is going to lose less or even win, then markets will rally. And vice versa. Also Texas is critical to monitor because there are almost 600 AI data center projects in that state…

Memory is becoming one of the most important pieces of the AI data center build out because GPUs are only as useful as the data they can access. AI models need enormous amounts of data to be constantly moved between memory and the GPU, and if that memory can’t keep up, expensive GPUs sit idle waiting for information to process. As models get larger and workloads become more complex, the demand for HBM, DRAM and high-performance storage keeps rising. Adding more GPUs doesn’t solve the problem if you can’t feed them fast enough.

This is exactly why we investigated this space and added a memory stock to our portfolio. Let’s take a closer look at this company now…