Walser Wealth Management Chief Investment Officer Rebecca Walser said consensus earnings growth estimates of 22-23% could prove too low, noting that first-quarter consensus of 17% was followed by actual growth of 29%. She cautioned that the ongoing Iranian conflict, which began in late February, may have a larger impact on second-quarter results and that resolution remains uncertain. Walser described the current AI-driven environment as a new frontier with no baseline, warning investors to expect volatility and a process of price and valuation discovery. She remains bullish on semiconductor companies tied to AI, quantum computing, robotics, and blockchain, but stressed that investors should participate only to the extent they are comfortable with risk, as the path will include significant pullbacks. Walser also addressed concerns about major tech companies tapping debt markets and issuing stock to fund AI capital expenditures, arguing that such financing steps are necessary in an uncharted territory that requires massive investment.
Micron Technology IncCIO bullish on semiconductor companies tied to AI, which includes Micron.