Watch Paul and Scarlet LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Intelligence hosted by Paul Sweeney and Alexandra Semenova -Jake Silverman, Bloomberg Intelligence Semiconductor Analyst, discusses a surge in memory-chip stocks intensifying, sending the market capitalizations of SK Hynix and Micron Technology above $1 trillion for the first time. Investors are betting the AI boom will lead to a sustained revaluation of the industry. -Sid Philip, Bloomberg Chief Correspondent for Global Aviation, discusses Boeing raising production on its 737 Max jet. Boeing CEO Kelly Ortberg said it’s a key step to improve profitability and generate cash. -Mary Ross Gilbert, Bloomberg Intelligence, Senior Equity Analyst, Covering Retail, recaps earnings from Abercrombie &amp; Fitch. The apparel retailer reported first-quarter adjusted earnings per share that beat and maintained its outlook for the year. -Lindsay Dutch, Bloomberg Intelligence Consumer Hardlines Senior Analyst, recaps earnings from Dick&#x27;s Sporting Goods and Bath &amp; Body works. According to Bloomberg Intelligence: Dick&#x27;s Sporting Goods&#x27; has strong momentum for its legacy business heading into the summer and back-to-school shopping seasons, with the World Cup a possible catalyst for further same-store sales surprises following fiscal 1Q&#x27;s stronger-than-expected 6% gain. See omnystudio.com/listener for privacy information.

Memory Chip Frenzy Sends SK Hynix, Micron Intro $1 Trillion Club 

Bloomberg Intelligence

# Full Transcript

**Podcast:** Bloomberg Intelligence

## Participants

- **Stephen Carroll** (Bloomberg)
- **Caroline Hepker** (Bloomberg)
- **Francine Lacroix** (Bloomberg Podcasts)
- **Jake Silverman** (Bloomberg Intelligence)
- **Sid Phillips** (Bloomberg)
- **Mary Ross Gilbert** (Bloomberg Intelligence)
- **Lindsey Dutch** (Bloomberg Intelligence)

## Transcript

Hello, I'm Stephen Carroll. I'm in Brussels where many of Europe's biggest decisions get made. And I'm Caroline Hepker in London with the hosts of the Bloomberg Daybreak Europe podcast. We're up early every weekday keeping an eye on what's happening across Europe and around the world. We do it early so the news is fresh, not recycled and so you know what actually matters as the day gets going. From Brussels, I'm following the politics, policy and the people shaping the European Union right now.

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Let's get back to tech stocks, semiconductor stocks in particular. They are just ripping. I mean, we've got million, trillion dollar market caps for micron technology. What's going on out there? I mean, there are not enough chips, I guess. I don't know. Let's turn to somebody who knows what's going on out there. Jake Silverman, semiconductor analyst for Bloomberg Intelligence. He joins us here in studio. Jake, what's going on with your world here today? Why are there not enough chips? Yeah. Just make more chips. I wish it was so simple.

But then they wouldn't be getting those price increases. Yeah. So really, I think, I guess focusing in on the valuation. We're in a particularly strong upcycle. I think the argument around why the stock should be worth a trillion dollars is that Micron and the other memory makers are no longer really in a cyclical situation. It's possible what we're seeing is a structural change in the memory market where it may be

more, the earnings may be more sustainable through the cycle over at least the next three to five years. And so if you argue in that, if you argue that, what you're arguing for is that maybe the valuation multiple has to expand beyond what we're seeing today. I mean, we're already at around 10x, I guess, a little bit below that, I think, forward earnin...

Memory Chip Frenzy Sends SK Hynix, Micron Intro $1 Trillion Club

Transcript

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Memory Chip Frenzy Sends SK Hynix, Micron Intro $1 Trillion Club

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.