Investors should rotate capital out of Hyperscalers like AMZN, META, and GOOGL and into the "scarcity" assets receiving their massive capital expenditures. Micron (MU) is a high-conviction play on this shift, with earnings growth outpacing its price and a low 2027 PE ratio of 8.7x amid a multi-year chip supply shortage. For exposure to AI power infrastructure, GE Vernova (GEV) is a top pick due to its bundled turbine and electrification offerings secured by long-term data center contracts. In the cannabis sector, Glasshouse Brands (GLAS) offers a timely catalyst as it prepares to list on the NYSE on June 30th following federal rescheduling. Conversely, avoid Accenture (ACN) and traditional software firms like CRM and ADBE, as AI spending is currently cannibalizing their core business models and consulting demand.

Micron (MU)

• Micron reported "incredibly powerful" financial results for the quarter, driven by the massive demand for AI data centers. • Key Stats: * EPS: $25.11 (a 1,215% year-over-year increase). * Revenue: $41.5 billion (a 345% year-over-year increase). • Management indicated that chip supply will remain constrained through at least 2027, suggesting a long-term supply/demand imbalance that favors manufacturers.

Takeaways

• Valuation: Despite the stock being up significantly (267% prior to the report), the 2027 Price-to-Earnings (PE) ratio is only 8.7x, as earnings growth is outpacing the stock price appreciation. • Scarcity Play: Investors are shifting capital toward "scarcity" assets like semiconductors (Micron and SanDisk) rather than the software companies that use them.

GE Vernova (GEV)

• Eisman views GEV as one of the "better AI power stories" currently in the market. • The company recently signed a 20-year power purchase agreement with Chevron and Microsoft to supply a data center in West Texas. • The deal highlights GEV’s "bundled offering," providing both turbines and electrification infrastructure.

Takeaways

• Infrastructure Demand: As AI data centers require massive amounts of electricity, companies providing the power generation hardware (like GEV) are primary beneficiaries of the AI CapEx cycle.

Glasshouse Brands (GLAS)

• A cannabis company that Steve Eisman personally owns. • The stock is set to list on the New York Stock Exchange (NYSE) on June 30th following the rescheduling of medical cannabis to Class 3.

Takeaways

• Regulatory Tailwinds: The move to Class 3 is a significant catalyst for the cannabis sector, improving the ability of companies to list on major exchanges and potentially improving tax treatments.

The "Hyperscalers" (AMZN, META, GOOGL, MSFT)

• Eisman is increasingly bearish on the "Hyperscalers" (large-cap tech companies building AI models). • The Thesis: These companies have become extremely "capital-intensive" with no end in sight for spending, yet they lack "moats" (competitive protections). • Risk Factors: * Low Loyalty: Users migrate between AI models (Gemini, ChatGPT, Claude) easily. * Talent War: Senior engineers are moving between companies (e.g., Google engineers leaving for OpenAI/Anthropic), making product differentiation difficult.

Takeaways

• Momentum Loss: The combination of high spending and low competitive moats is leading to a "race to the bottom" and lower returns on capital. • Market Shift: Investors are starting to rotate out of the companies spending the money (Hyperscalers) and into the companies receiving the money (Semiconductors and Power).

Accenture (ACN)

• Reported a "disastrous" quarter with revenue up only 3% and bookings declining 3%. • The AI Threat: There is a growing fear that AI will reduce the need for traditional management consulting services.

Takeaways

• Cannibalization: While clients are hiring Accenture for AI advice, they are cutting back on all other consulting services to fund that AI spend, resulting in weak net growth. • Red Flag: Eisman noted that Accenture announced three acquisitions in one day, which he interprets as an attempt to "hide weakness" in organic growth.

SpaceX (Private/Bond Market)

• Eisman notes that SpaceX has become a very volatile and capital-intensive business. • The company recently increased a bond sale from $20 billion to $25 billion to support its operations.

Takeaways

• Capital Intensity: The massive bond issuance supports the thesis that the space industry requires constant, heavy capital injections, which may lead to price volatility for those holding the equity or debt.

Nike (NKE)

• Nike was downgraded from "Buy" to "Hold" by analysts at Evercore. • The stock has been described as a "turnaround story" for two years that has failed to actually turn around.

Takeaways

• Lack of Momentum: There is currently no evidence that the company's restructuring or strategy shifts are taking hold, making it a "wait and see" stock for many investors.

Sector Summary & Themes

• Financials: Large investment banks like Morgan Stanley (MS) and Goldman Sachs (GS) have rallied as recession fears faded. However, the Payments space (PayPal, Fiserv) remains a "place to avoid." • Energy: The sector declined 13% in Q2, giving back gains made earlier in the year. • Software: Stocks like Salesforce (CRM), Adobe (ADBE), and Intuit (INTU) have struggled (down 18-39%) as the market worries about AI disruption to their business models. • Crypto-Linked Stocks: Companies like Coinbase (COIN) saw double-digit declines in Q2 following the correction in Bitcoin prices.