The 7investing Podcast

Apple (NASDAQ:AAPL) just dropped a bombshell product lineup — including the all-new MacBook Neo at just $600, the iPhone 17E, and the MacBook Air M5 — and they're doing it while raising gross margins. How is that possible in an inflationary, tariff-heavy environment? In this episode, Simon Erickson breaks down Apple's bold pricing strategy, its asset-light business model, and why this could be a major long-term win for investors.We dig into Apple's record-breaking Q1 results: $143.8B in revenue (up 16% YoY), an all-time high gross margin of 48.2%, and $54B in operating cash flow — including $24.7B in share buybacks. We also explore how Apple's reliance on Taiwan Semiconductor (NYSE:TSM) and Broadcom (NASDAQ:AVGO) for chip manufacturing lets it avoid the massive CapEx spending that rivals like Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), and Meta (NASDAQ:META) are racing to deploy.Plus, a preview of our upcoming Friday show: the Novo Nordisk (NYSE:NVO) vs. Hims & Hers (NYSE:HIMS) feud over GLP-1 weight loss drugs — and a future special episode on quantum computing.Don't miss out on our free investing newsletter with show recaps delivered straight to your inbox: 7investing.com/newsletter#Apple #AAPL #MacBookNeo #iPhone17E #MacBookAirM5 #StockMarket #InvestingNews #TechStocks #AppleInvestor #Tariffs #Inflation #GrossMargin #ShareBuybacks #TaiwanSemiconductor #Broadcom #GLP1 #NovoNordisk #HimsAndHers #QuantumComputing #7investing #SimonErickson

Simon Erickson of 7investing breaks down two high-potential watchlist stocks: Micron Technology (NASDAQ:MU) — a memory giant riding the AI boom with explosive margin expansion — and Infleqtion (NYSE:INFQ), a newly public quantum computing company using groundbreaking neutral atom technology. Micron's high bandwidth memory (HBM) is completely sold out through 2026, with gross margins expanding 16 percentage points year-over-year on $13.6B in quarterly revenue. This is one of the most compelling AI infrastructure plays in the semiconductor space right now.Infleqtion just hit public markets via SPAC in February 2026 and is already partnered with NVIDIA (NASDAQ:NVDA) through a CUDA integration called Qlink. With quantum computing threatening RSA encryption and unlocking solutions classical computers can't touch, government contracts, defense spending, and research grants are flooding the space — justifying premium valuations for early-stage leaders.

What a month it has been for our 7investing show!Throughout all of February, we focused on the semiconductor industry - looking for the investment opportunities who were best-poised to benefit from AI's endless demand for computing. We searched far and wide for those top stock ideas, and we featured some incredible guests to share their insights on the show all month.That included: 1) Feb 1: "The Eyes of AI"Emmet Savage and I looked into the new world of "Physical AI" and how it was using solid-state LiDAR to see all of its surroundings. Our stock of focus was Ouster $OUST.https://youtube.com/live/yYpByizVWc02) Feb 9: "The Future of the Chip Industry"Robert Quinn and I discussed Elon's TeraFab idea, space-based datacenters, and why the AI "bubble" is actually more of an AI "inflection point". Our stock of focus was Tesla $TSLA.https://youtube.com/live/Qmk84KLaX0Y3) Feb 16: "Why Infrastructure is the Real Winner in the Age of AI"John Rotonti and I discussed "SaaS-pocalypse" and why several vendors were hidden winners in the $3 trillion AI infrastructure spending through 2030. Our stocks of focus were Amphenol $APH and Trane Technologies $TT.https://youtube.com/live/zFTcaGY3rkM4) Feb 18: "NVIDIA vs AMD: The $1 Trillion AI Chip War Explained"Nick Rossolillo and I described the ambitious forecasts recently issued by chipmakers and the role of newcomers with creative new designs. Our stocks of focus were NVIDIA $NVDA and $AMD. https://youtube.com/live/_p0vhUR2JNY5) Feb 27: "From Fiber Optics Bust to AI Optics Boom: The $700B Optics Opportunity" Eric Bleeker and I discussed how co-packaged optics and advanced packaging could be game-changers for chip efficiency. Our stocks of focus were Applied Optoelectronics $AAOI and Lumentum $LITE. https://youtube.com/live/Paw4f6ay3AgA HUGE THANK YOU to all of our guests in February!We had some great conversations, answered some fun audience questions, and empowered investors to take a closer look at this red-hot chip sector.On today's March 2 show, I'll share the key takeaways from each of these shows mentioned above and then discuss the one semiconductor stock I ultimately selected as my official recommendation for March.

February 27, 2026: Co-Packaged OpticsGenerative AI is getting very demanding.It's become extremely power-hungry, and that's pushing the physical limits of what today's highest-performing chips are even capable of.One potential solution is co-packaged optics, which involves integrating fiber-optic transmitters directly into the chip. It's a great way to avoid much of the heat and signal degradation that traditionally comes from moving data across inefficient copper wires.Overall, that improves computing performance and uses less power. Which is a big win for this entire sector!But there are also significant costs associated with this new advanced packaging technology. Will the hyperscalers be willing to foot the bill, as the pace of their data center buildouts now approaches light speed?On Friday's show, I was joined by 24/7 Wall Street's Eric Bleeker to discuss the opportunity for co-packaged optics.We described why Lumentum has doubled in price during just the past two months and why Applied Optoelectronics is another stock that should be on your investing radar.⚠️ Not financial advice. Do your own research. These stocks have run significantly—understand the risks before investing.#optics #semiconductors #AI #datacenter #NVIDIA #AppliedOptoelectronics #Lumentum #copackagedoptics #AIinfrastructure #chipstocks #investing #stockmarket #7investing #247WallStreet #EricBleeker #advancedpackaging #hyperscalers #Amazon #Google #AIboom #techstocks #stockpicks

Feb 18, 2026: What's Next for AI AcceleratorsAMD's CEO Lisa Su thinks the market for cutting-edge AI chips will be worth $1 trillion annually by 2030 and NVIDIA's CEO Jensen Huang (who happens to be Lisa's cousin once-removed) believes AI infrastructure spend will total $4 trillion during the next five years.If those forecasts are even directionally correct, both AMD and NVIDIA will still have quite an extended growth runway in this red hot semiconductor sector.But are these admittedly self-serving forecasts actually realistic?Or is AI hardware likely to become commoditized and lower-priced during that timeframe?And are there other competitors who might also pose a challenge in this two-horse race?On Wednesday's show, I was joined by Chip Stock Investor founder Nick Rossolillo to describe what lies ahead for both NVIDIA and AMD.We also discussed why Apple is spending significantly on CapEx less than its other Big Tech peers, whether Moore's Law is actually dead, and the role of newcomers like Cerebras Systems and IonQ.#NVIDIA #AMD #semiconductors #AIchips #JensenHuang #LisaSu #chipstocks #datacenter #investing #Broadcom #Apple #TSMC #Cerebras #quantumcomputing #7investing #chipstockinvestor #techinvesting #AIinfrastructure #hyperscalers #GPUvsCPU #waferschale #FormulaOne #poleposition #techanalysis #stockmarket2026

Feb 16, 2026: Why Infrastructure is the Real Winner in the Age of AIWarren Buffett is widely credited with characterizing competitive advantages as moats that companies will aggressively build and will vigorously defend to protect themselves from attacks by others.The software industry has been a popular sector for investors in recent years due to its outsized growth rates and its ability to quickly iterate.Yet the barriers to entry are low here, and it's been difficult for software companies to build sustainable moats.That's perhaps one of the key reasons for the recent "SaaS-pocalypse", where many software stocks have sold off due to the emerging threat of AI and technological disruption.So where do we go from here? Are software stocks with lower prices now a compelling buying opportunity? Or are these falling knives with even more downside risk ahead?On Monday's livestream show, Bastion Fiduciary portfolio manager John Rotonti and I describe the status quo of the software industry. But we also discuss how infrastructure providers are emerging as the real winners in the age of AI.Power, cooling, networking, and other supporting functions are supply-constrained and are doing their best to meet the $3 trillion of AI infrastructure spending that will take place within the next five years. We discuss the turnaround taking place in manufacturing and why Amphenol, TE Connectivity, and Trane Technologies could be lucrative investment opportunities.Timestamps:00:00 – Welcome & Mardi Gras check-in02:30 – The SaaS reckoning: low moats, high competition08:00 – Valuations then vs. now (52x PE → 20x)12:00 – The stock-based compensation problem15:00 – Is it finally time to invest in SaaS?20:00 – Constellation Software: the acquisition machine28:00 – Nvidia & the AI infrastructure buildout38:00 – Hardware + software integration as a moat40:00 – Why Alphabet is the widest-moat AI company43:00 – Power, liquid cooling & the data center arms race47:00 – Labor shortages & re-industrialization50:00 – Audience Q&ALearn more about long-term investing at 7investing.com — get your first 7 days free at 7investing.com/subscribe#7investing #AIStocks #SaaS #Nvidia #Alphabet #JohnRotonti #StockMarket #Investing #AIInfrastructure #IndustrialStocks #ConstellationSoftware #LongTermInvesting

February 13, 2026: AI in Drug DiscoveryIt costs $2.5 billion and up to 10 years of effort to successfully bring a new drug to market.That's an extremely high hurdle to succeed!It's no wonder why the high costs of FDA trials & the elevated rates of failure often result in small-cap drug developers declaring bankruptcy. Biotechnology is one of the stock market's riskiest sectors to invest in.But what if there was a way to change that?What if we could use technology to alleviate some of the biotech industry's deepest and most systemic risks?AI doesn't necessarily produce better drugs. Though it might be able to reduce drug development costs and timelines significantly.And if it did, that would be a game-changer for the entire industry.On today's show, my special guest Manisha Samy and I will discuss how AI-native infrastructure could vastly improve the return profiles of early-stage biotech companies.Our stock of focus will be Recursion Pharmaceuticals (Nasdaq: RXRX) who's creatively using AI to guide several programs in its development pipeline.🔗 Free 7investing trial: https://7investing.com/subscribe#biotech #AI #drugdiscovery #recursion #RXRX #biotechinvesting #artificialintelligence #pharmaceuticals #7investing #ManishaSamy #CRISPRtherapy #clinicaltrials #FDAapproval

Feb 9, 2026: The Future of the Chip Industry1) Elon Musk wants Tesla to bypass Taiwan Semi and to build his own massive "TeraFab" facilities that would supply 20% of the world's chips.2) Datacenters that are launched into Low Earth Orbit would operate more efficiently with lower temperatures, zero-gravity, and with abundant solar power.3) Meta Platforms' new 5 gigawatt Hyperion AI lab will require more power than the current output of America's largest nuclear power plant.These aren't just science fiction ideas, nor are they purely academic discussions.These are actual projects on the table, which would cost hundreds of billions of dollars and years of dedicated effort to complete.And their technological, commercial, and geopolitical implications would be felt everywhere across the world.I recently spoke with Robert Quinn about the future of the semiconductor industry.Robert has spent three decades advising companies, investors, and institutions on how to design and operate fabs and then to optimize their yields.On our show, we discuss Elon's latest ambitions, whether "the AI Bubble" is actually "an inflection point of demand" and several of the important bottlenecks the industry is facing.We also describe investing opportunities, including chip designer NVIDIA, equipment provider ASML, and quantum innovator IonQ.🔗 Follow Robert Quinn: https://www.linkedin.com/in/robertquinn2020/🔗 Get started with 7investing: https://www.7investing.com (7-day free trial)#semiconductors #elonmusk #AI #chipmanufacturing #tesla #SMR #nuclearenergy #spacetechnology #investing #stockmarket

7investing CEO Simon Erickson and My Wall Street CEO and Prophet founder Emmett Savage as they explore Computer Modelling Group (TSE: GMG) (OTCMKTS: CMDXF) - a hidden gem in the oil & gas software sector that most investors are completely ignoring.Why "special situations" investing can uncover multi-bagger opportunitiesHow Computer Modeling Group provides essential reservoir simulation software to energy giants like ShellWhy CMG's captive customer base and efficient business model make it attractive despite hitting all-time lowsThe potential catalyst on the horizon that could unlock significant valueEmmett's contrarian optimism for 2026 and where to find value in today's marketThis is the third installment in our special situations series, following previous discussions on Ouster (solid-state lidar) and Vertical Aerospace (eVTOL).Computer Modelling Group Trading Information:Toronto Stock Exchange: CMGUS Ticker: CMDXF🔗 Get started with 7investing: https://7investing.com (7-day free trial)🔗 Special offer with Prophet: https://www.useprophet.com/7investing (expires Feb 5th)Coming up next week:Monday & Wednesday: Semiconductor sector deep divesFriday: Biotechnology with Manisha Sammy#investing #stockmarket #oilandgas #specialsituations #valueinvesting #smallcapstocks

Happy Groundhog Day! Punxsutawney Phil saw his shadow (6 more weeks of winter ☃️), but consumer discretionary stocks are about to heat up!What is Consumer Discretionary?NOT consumer staples (milk, eggs, cereal)The "wants" not "needs" - retailers, restaurants, automakers, home improvementAmazon, Tesla, Home Depot, Lowe's, McDonald's, Chipotle, StarbucksHighly cyclical - outperforms in good times, underperforms in downturnsWhy the Last 5 Years Were Rough:COVID impact on restaurants, brick-and-mortar retail2022: Fed raised rates 7 times (crushed consumer spending)2025: International tariffs pushed up pricesNike, Lululemon: Multiple quarters of negative compsMedian 5-year return: ~9.8% (vs typical 11-12%)Why 2026 Could Be Different:ChatGPT Ads Launch - 1 billion users, new ad format for retailersLower customer acquisition costs - More platforms = cheaper conversionsEasier year-over-year comps - 2025 was terrible, 2026 looks betterInternational brands too cheap - Crocs at 6x free cash flow?!CEO turnarounds - Major brands hiring new leadershipSupply chains stabilizing - Post-tariff efficiency gainsThe ChatGPT Game-Changer:1 billion users (50M paying $200/month for Pro)New ad format: Embedded product suggestions in promptsExample: "Mexican dinner ideas" → Hot sauce ad placementSimilar to Google's playbook: Free product → Monetize with adsRetailers get NEW low-cost acquisition channelStock Opportunities Discussed:- Lovable brands selling cheap: Nike, Lululemon, Crocs- Restaurant plays: Starbucks, Domino's, Chipotle, Cava Group- Software crossover: DraftKings, Duolingo (100M+ users each)- Tesla: Robotaxi progress, new Elon pay package- Adobe: "Dead" due to AI? Still 40% FCF margins, strong retention- The Trade Desk: Collapsed in 2025, cyclical downturn ≠ dead company🎯 February 2026 Recommendation:Simon just released 7investing's official February pick - an up-and-coming consumer discretionary company challenging the "old guard" with:Strong leadership teamInnovation in a legacy-dominated sectorInexpensive valuation due to cyclical downturn🔗 2025 Year in Review: 17 sectors analyzed, conviction ratings for 106+ stocks🔗 Free 7-day trial: https://7investing.com/subscribe🔗 See February 2026 pick: https://7investing.com/recommendationsComing Up in February:Wed 2/4: Emmett Savage on Computer Modeling GroupNext week: ChipStock Investor on semiconductors2/13: Manisha Premsingh on biotech innovationLater: John Rotonti, Jeff Fischer, Eric Bleecker⚠️ Not financial advice. Do your own research before investing.#consumerdiscretionary #retailstocks #ChatGPT #advertising #investing #stockmarket #Nike #Lululemon #Tesla #Adobe #7investing #2026stocks #cyclicalstocks #valueinvesting