The creator mentions AMD as a stock that some investors might be tempted to chase for small gains, but suggests focusing on other areas due to broader market risks.
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Here Is Why AVGO Crashed And Why It Signals An Upcoming Catastrophe For The Data Center Buildout
Jun 7, 2026
The creator discusses the bullwhip effect, a phenomenon of demand amplification up the supply chain, and applies it to the current AI data center buildout. They highlight Nvidia's massive inventory build, with a significant year-over-year increase in holding days, suggesting a potential upcoming catastrophe for the sector.
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Micron, despite its strong fundamentals, could crash by 80-90% due to the bullwhip effect in the data center buildout.
Meta's significant CapEx increase, employee layoffs, and potential need to raise cash indicate financial strain and a bearish outlook.
Alphabet's need to raise cash and its massive CapEx increase suggest financial stress, indicating a potential negative outlook.
Broadcom's increased inventory levels and holding times signal potential risks in the data center buildout, suggesting a bearish outlook.
Nvidia is experiencing a massive inventory build, holding inventory for significantly longer periods, which the creator believes signals an upcoming catastrophe for the AI data center buildout.