Video summary
The video begins by addressing a recent downturn specifically affecting AI stocks, even though the broader market indices experienced only minor declines. The speaker notes that while sectors like semiconductors faced significant pressure, leading to drops in major indexes like the S&P 500 and Nasdaq, the overall market sentiment remains relatively stable compared to previous volatility spikes. A key driver of this recent turbulence is identified as rising oil prices, which have breached the $100 per barrel mark, alongside an elevated VIX index that signals increased fear among investors. Consequently, the presenter views these conditions not as a reason for panic but as a potential buying opportunity, particularly in AI-related companies that have seen their stock prices correct sharply from recent highs due to concerns about slowing buildouts and competition with China.
In terms of specific investment targets within the technology sector, the speaker highlights several semiconductor and hardware stocks as attractive picks following their pullbacks. Lamb Research is presented as a primary interest, having dropped significantly from its peak in April, with the presenter believing it will hold above key support levels before rebounding by year-end. Similarly, Applied Materials and Micron are noted for their strong fundamentals despite recent price corrections, while CrowdStrike is singled out as the leading cybersecurity play to watch given that security bottlenecks are a critical component of the current AI infrastructure race. The strategy involves looking at both direct stock purchases and options calls to gain leveraged exposure without committing excessive capital upfront, aiming to capitalize on the inevitable next leg up in this high-growth sector once the fear subsides.
Shifting focus to a defensive hedge against inflation, the video introduces Helio Star Metals as a compelling gold mining opportunity. The company is noted for its recent inclusion in the GDXJ ETF and boasts a robust portfolio of 100% owned assets in Mexico, including two producing mines with significant expansion potential. Recent quarterly results were record-breaking, featuring increased production, strong cash reserves, and no debt, which underscores the company's operational strength. The presenter emphasizes that while gold stocks carry inherent risks, they offer a leveraged way to benefit from rising gold prices as inflation pressures persist, making them a valuable addition to a diversified portfolio alongside traditional safe-haven assets.
Ultimately, the speaker concludes that the current market environment, characterized by volatility in AI and energy sectors, presents a strategic entry point for investors who understand the long-term trajectory of these industries. The core argument is that the United States must maintain momentum in its AI race against China, suggesting that any recent price drops are healthy corrections rather than signs of a fundamental breakdown. By combining positions in undervalued tech giants like Lamb Research and Applied Materials with a strategic allocation to gold equities like Helio Star Metals, investors can position themselves for growth while mitigating risk through inflation hedging. The video ends by encouraging viewers to conduct their own research, stay informed through private updates, and engage in the comments section to discuss their own market perspectives.
Read the full video transcript
O, guys, it was uh it was rough today,
especially for these AI stocks. I want
to dive deeper into these charts, go
over some AI stocks, you know, overall
the indices, where my head's at, and one
gold company I'm watching now. So, let's
dive into it, guys. Hit the like button,
make sure to subscribe, join the
Patreon, do all that good stuff. That's
linked down below, by the way. I post
all my trades, my portfolio updates, and
that's where my private Discord's at on
Patreon. Check it out. So today wasn't a
terrible day, I guess, for the overall
stock market. Really, the semi stocks
got hit, the AI stocks got hit, which
again we'll talk about, but again, not a
not a bad day for the overall market.
Dow went down about a quarter%, Russell
down .04. And don't get me wrong, it it
was a red day. Uh but it wasn't
terrible. Um the Q's went down about 3/4
of a percent, the S&P um around half a
percent. So, pretty much down about half
a percent to about 3/4 of a percent
across the board. The VIX went up 8%.
Oil is ripping through 100 a barrel.
Both Brent and WTI uh Brent's at now 106
a barrel, guys. WTI crude is at uh
what's that at? It's at 101 102. So, the
you know, it's it's getting wild, which
is why I'm watching gold and a gold
stock in particular here. gold stocks in
general, honestly. Uh, but I want to
break down one in particular in this
video. And it's been it's been insane,
man. SPY still holding 760, which
chartwise is a good sign. Uh, but we're
holding on by a thread. You guys can see
here that was resistance a couple months
ago. We broke through it, got to 780.
Now, we're holding on by a thread. We'll
see if we get a full-on pop off that
point. Time will tell. Um the Q's are
are still struggling to break through um
this downtrend that we talked about in
the previous video. Although we do still
have an inverse head and shoulders here.
Um you guys see that clearly on the Q's
as the Dow. Let's see what the Dow's
looking like, guys. I mean, look, the
Dow's looking good out of all these
indices. Probably looking the best chart
wise. Um the Dow's right around the 180
SMA on this 4 hour chart as the Russell
is at uh just under the 180 SMA. It's
starting to break down here actually
guys. Small caps have not been looking
good the last couple of weeks. Um as the
Russell really over the last month is
down 6%. Not not looking so great for
the small caps. But when in doubt, zoom
out. Like I always say, man, it's not
it's not too bad at the end of the day.
Uh but that's what we're looking like
here on these indices. Nothing too
crazy. And again, the key point here is
oil is going nuts. We have the VIX going
nuts, which what did I say a couple
weeks ago when the VIX was at 14, 15,
you know, it's just too low. That's why
I bought the put debit spreads, which
those are looking pretty good right now.
And I'm still holding on to those. They
expire I think in November which you
guys probably remember that and again I
post all the updates on Patreon. So let
me show you quickly now some of these AI
stocks man the picks and shovels plays
memory the semi stocks they're getting
nailed and I am looking to buy in
particular lamb uh lamb research um
ticker LRCX. This thing got hit 8%
today. We're now down at 273. We're
pretty much back at the lows. Not quite,
but we're close to the lows from, excuse
me, the end of July where we hit about
what 250 255. And I think I don't think
it takes that low out. Genuinely, I
think Lamb holds two, you know, 250,
260.
I think we ultimately get a nice rebound
into the end of the year. Now, will
there be, you know, will there be no
more volatility? Probably not. I mean,
there's going to be more volatility.
We're seeing fear around AI, the
buildout, is it slowing down? What's
going on with anthropic? All these guys
are stepping down, blah blah blah. But
the reality is, guys, we are in an AI
race with China, and we're not going to
take the foot off the gas. We're not
going to lose the race to China, and
these stocks are going to have another
another run. It it just they just got
way too hot. I mean, Lamb Research was
at 213 back in early April, and it
doubled. It doubled to 440, more than
doubled in 3 months. So, this is a is a
healthy pullback, healthy correction in
all these names, you know, in all these
names. Applied materials is another one
I'm watching. AMAT,
uh, this thing hit 740, now it's at
what, 420. I mean, come on. Uh, the the
chart still still looks pretty good.
stocks like of course Micron. I'm not
super close to buying Micron. More more
so Applied Materials and Lamb, but you
can't go wrong with Micron based on the
numbers we're seeing. SanDisk as well.
Um SanDisk looks pretty decent on the
charts. And if this thing takes 1,800,
I'm still I'm still saying it. If it
takes out 1,800, this could be going to
$2,000
plus per share. Again, that that's just
my opinion. And so I think a lot of
these stocks, especially Lamb,
especially Applied Materials, especially
um you know, Micron, even Nvidia,
although I'm not looking to add more
Nvidia, quite frankly, guys, I'm just
holding. Um you can make an argument
Nvidia is a great buy here. Other stocks
like, you know, Google we were talking
about in the mid 320s when the forward P
was what, a 16 or the trailing was a 16,
that's now back in the mid340s. So
that's starting to rebound already. And
we're noticing the the the current
bottleneck we're hearing about in in AI
is cyber security. A lot of these names
are going nuts. Crowd strike ripped 13%
today. Fresh all-time high for Crowd
Strike. I'm not chasing it necessarily.
Uh but I am watching it closely here
guys for obvious reasons. It it is the
best cyber security stock almost
objectively at this point. best company
in cyber security. So, keeping my eyes
peeled on Crowd Strike and the software
names, right? Service Now, we called
this thing out at about 130. Look at
this thing now. It had a 7% green day
back to the 140s. Clearly, we're seeing
rotation. Well, I mean, money didn't
rotate out of software, but money
starting to come back in on the dip
here, and we saw a lot of a lot of
software names um take off. I'm also
watching Groupon. Groupon's one that we
were talking about chartwise. Um, and
this is one that's down $10 a share, $12
a share from highs, and I think I think
it's about to go on a run. We're down
35% from highs. Chart looks decent, 2%
green day today. I think I think Groupon
makes a move back over 20 bucks a share.
So, I'm maybe not looking to buy a bunch
of uh shares in Groupon, but I am
looking to buy some calls potentially a
little less exposure dollar-wise. Um,
but that's the beautiful thing of calls
with options in general. You know, you
don't have to put a bunch of money up
front and you get a leveraged, you know,
you get leveraged exposure to to a
stock. You know, instead of buying
hundreds or thousands of shares,
whatever. um you can buy a couple
contracts, whatever it may be, and uh
get just just uh you know, just as much
exposure, if not more. Um depending on
obviously the math behind the uh the
trade. Uh but yeah, those are a couple
stocks I'm watching right now. And by
the way, guys, I'm not panicking about
this AI um you know, this AI pullback.
If anything, this is a beautiful
opportunity. There's FUD right now, a
lot of fear, uncertainty, doubt. A lot's
going on. And I I just genuinely think
that we're not taking the foot off the
gas. Why would we? Why would we? It
doesn't make sense. We need to beat out
China. And that's what's going to happen
here. So, I'm buying these stocks. I'm
looking to buy calls and lamb applied
materials. I'm looking to buy shares in
those as well. Um, and other stocks as
well. Guys, let me know what you're
doing in the comments. I'm super curious
where your head's at. And let's go over
now this gold stock I'm watching because
like I said inflation is creeping up. We
all know that. Oil is going back over
100 a barrel which means probably more
inflation's coming. And uh gold's a
great way to hedge. And if you want to
take a little more risk, gold stocks are
a great way um to do that. And in this
case, I'm watching Helio Star Metals.
And this part of the video is
disseminated on their behalf. And they
trade in Canada under ticker HSTR.
And in the United States under ticker
HSTXF,
and they're rapidly emerging right now
as the next mid-tier gold producer. They
actually just got included in the GDXJ
ETF, which I think that goes into effect
at the end of this week. And they're led
by the Highgrade Annipala project
targeting 2028
production. And if we take a look here,
they have big goals, right? And of
course, nothing's guaranteed, right? You
know, you got to you got to do your
research, but Helioar aims to be a
premier precious metals growth company,
right? Producing more than 500,000
ounces of gold per year by 2030, which
guys, that's coming up. This decade's
going by quick. They're ambitious. They
have big goals and they have a strong
100% owned pipeline. And let me make
sure you guys uh can see this. I'll pop
my big old head down here. Hit the like
button. By the way, make sure to
subscribe if you haven't done so
already. We're uh I think we're pushing
what 75K subs on YouTube. Make sure to
hit that subscribe button. I think 50%
of you guys watch the content, but you
don't subscribe. That's a problem. So,
the L Colorado Mine in Mexico and the
San Augustine mine. These are two that
you guys need to keep an eye on, right?
La Colorado Mine, they added 6 years of
mine life, averaging 50 KOZ per year
from pit expansions. And for San
Augustine, they received permits to
expand the open pit and raise leech pad,
which is critical. And again, the Anipal
project, you got to keep an eye on it.
That's going to be critical come 2028.
It's on track for production in the
second half of 2028.
And the port uh portfolio position is
pretty strong here. They have a
portfolio of 100% owned assets in
Mexico, two producing mines, five growth
assets, 1.9 million ounces probable gold
reserves, 7.2 2 million ounces M&I gold
resources with 122 million ounces M&I
silver resources and this kind of shows
you on the map where all this stuff's
located the producing gold assets the
growth gold projects and the Q2
operating results guys very very
impressive out of the company which
we'll talk more about here in a second
and the guidance take a look at this
guidance guys for the gold production
consolidated Between these two mines
again, La Colorado and Santa August,
we're looking at 50 to 55,000 ounces of
gold production, 290 to 320,000 ounces
of silver production. You guys see that
right here in the middle. And the cash
cost is roughly $1850 to 1950 uh per
ounce of gold. And we can see here on
the right side um the what's this
figure? the AISC,
the dollar per ounce of gold um for that
figure. And this goes a little deeper
into um the LA Colorado mine, which we
can see here, the 2026 guidance, the key
metrics and so forth. Same with San
Augustine, which again, these are 100%
owned properties. And like I mentioned,
this is critical for the stock, right?
And for the company and for kind of more
attention to the company. um they just
got included in the GDXJ
ETF which this is part of the you know
semianual review and quarterly
rebalancing that the GDXJ does and this
will be effective at market close on
September 18th 2026
uh which is at the end of this you know
this week um that's very exciting for
the company and if we take a look here
at these numbers Q2 highlights guys the
they reported some record numbers. They
increased the quarterly gold production
from San Augustine by 49%. They produced
a record almost 15,000 ounces of gold
and about 80,000 ounces of silver. And
the average gold sale price was right
around $4,400 per ounce. They had a
record cash position of $43 million with
no debt at the end of Q2. um with record
revenues of $56.5 million driving record
mine operating earnings of over $31
million and net income of $8 million.
And they completed an acquisition of
Gold Strike um during Q2 and made a $10
million initial cash contribution. So, a
lot's going right for this company.
Obviously, we don't know what's going to
happen in the future. Um, investing in
gold stocks is risky. We all know that,
but it is a way to benefit potentially
from the rising price of gold and it's
kind of a leveraged way to play and bet
on gold. Not with this stock in
particular. Well, I guess with any
stock, I mean, it could go wrong
obviously. We never know, but the theory
is, you know, if you buy gold stocks,
you're going to get a leverage return
compared to the price of gold, the
appreciation of the price of gold. Um,
so I'm watching this one very closely.
Again, Helio Star Metals. Add them to
your watch list. Do your own research.
Like I said, and and again guys, I'm not
a financial advisor. And full
disclosure, as of this video, I don't
own any shares of this stock, which is
subject to change. And of course, I'll
keep you guys posted on, you know, my
Patreon, all the posts that I make. um
if I do take a position on that stock or
any stock for that matter um those on
Patreon they they figure that or they
you know get notified of that first. So
what do you guys think man? gold uh you
know gold's not the the flashiest um you
know subject to talk about but with
inflation creeping up man it is I've
been saying it for years it is it should
be a part of everyone's portfolio not
all of it not 50% of your portfolio
maybe 50% if you want but something you
should have some money in a safe haven
kind of an an inflation hedge asset
which is what gold is so what do you
guys think in the comments comments, hit
the like button, subscribe, and I'll see
you all in the next