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SUMMARY
Jeremy Lefebvre discusses recent market trends, focusing on ServiceNow, AMD, and Micron, while offering strategic advice for investors. He emphasizes disciplined investing, the cyclical nature of semiconductor stocks, and highlights ServiceNow as a growth opportunity.
MAIN POINTS
- Jeremy outlines four key topics: market advice, AMD's outlook, Micron's prospects, and a growth stock with major upside.
- He stresses the importance of focusing on fundamentals and ignoring distractions like market timing, politics, and media noise.
- AMD is described as entering a phase of accelerating profitability and demand, with potential for significant stock price appreciation.
- Micron is analyzed as being in an upward cycle with unsustainably high margins, but its cyclical nature may limit long-term upside.
- ServiceNow is presented as an undervalued SaaS company with strong fundamentals and significant future growth potential, especially as an AI beneficiary.
DETAILED ANALYSIS
The discussion begins with a review of ServiceNow's recent positive performance, highlighting substantial gains and congratulating investors who bought in at lower prices. The broader context is set by reflecting on the bull market that began in the fourth quarter of 2022, following two significant market crashes: the rapid 2020 pandemic-induced drop and the prolonged 2022 correction. Lefebvre notes that many investors, spooked by these downturns and rising interest rates, shifted capital into treasuries, missing out on the subsequent equity rally.
This has led to frustration among those waiting on the sidelines for another crash, with some now rooting for a market correction to justify their missed gains.
He cautions against market timing and emphasizes the futility of trying to predict crashes or react to external factors such as political changes or geopolitical tensions. Drawing on the philosophies of successful football coaches Nick Saban and Bill Belichick, he advocates for focusing on controllable factors—namely, diligent research, company fundamentals, and disciplined execution. Investors are encouraged to prioritize deep analysis of company financials, earnings projections, and industry trends over daily price movements or macroeconomic speculation.
Turning to AMD, Lefebvre acknowledges its seemingly high forward price-to-earnings (P/E) ratio but argues this metric likely understates the company's true earnings potential. He points out that AMD's profitability is expected to exceed Wall Street estimates, driven by surging demand for both GPUs and CPUs. CEO Lisa Su’s consistent record of outperforming expectations supports this bullish outlook.
Lefebvre suggests that the market may quickly price in future growth, potentially pushing AMD’s stock to $1,000 or more, possibly sooner than his own projections. He also notes the upcoming Nvidia earnings as a potential catalyst that could drive AMD higher if Nvidia delivers strong results.
Micron is examined through the lens of its cyclical business model. Currently, the company is in a strong upward phase, with revenues, margins, and profitability reaching impressive heights. However, Lefebvre warns that Micron’s net margins, reportedly around 60%, are unsustainable in the long term.
He compares these margins to those of industry leaders like Nvidia, Apple, Meta, and Google, all of which have significantly lower but still robust profitability. The cyclical nature of memory chip companies means that stock prices often peak before profitability does, and investors are advised to be cautious when sentiment is overwhelmingly positive. Lefebvre recommends buying such stocks during periods of negativity and high P/E ratios, which typically coincide with the trough of the profitability cycle and precede major upswings.
Finally, ServiceNow is highlighted as a compelling growth opportunity. Despite a recent surge, Lefebvre argues that the stock remains undervalued relative to its historical P/E ratios and current fundamentals. He points to the company’s strong revenue growth, expanding earnings per share, and robust free cash flow as evidence of a top-tier business model.
ServiceNow is also positioned as a major beneficiary of the ongoing AI revolution, with significant potential for further appreciation. Lefebvre encourages investors to conduct thorough research using available analytical tools to fully understand the company’s prospects.
Throughout the analysis, the central message is clear: long-term success in investing comes from focusing on company fundamentals, maintaining discipline, and avoiding the distractions of market noise and short-term speculation.
LINKS
- Patreon 1 day sale signup link for May 25, 2026.
- Application link for Jeremy Lefebvre's Private Stock & Wealth Group.
- Patreon page for supporting the channel and accessing weekly buy lists.
- Free workshops on investing topics.
- Jeremy Lefebvre's Instagram profile.
- Jeremy Lefebvre's X (Twitter) profile.
- Jeremy Lefebvre's Facebook profile.
- Jeremy Lefebvre's personal website.
- 1000XStocks Instagram profile.
- 1000XStocks X (Twitter) profile.