BUY THIS DIP! 4 Stocks That Are CRAZY Cheap

Folks, this dip won't last. On Thursday, Alphabet had the worst day in its history. Down almost 13%, almost half a trillion dollars gone in one session. And on Friday, the Nasdaq dropped some 3%. If you opened up your portfolio in the last week, well, it kind of felt like you got punched in the face. Maybe kicked in the stomach. Spat on. Called a big loser. I know how it feels. But a lot of folks are missing the bigger picture here and why right now is undeniably a great opportunity. In today's video, we're going to go through what the charts are saying, what history says comes next, including the one thing almost everybody got wrong about the dot-com crash. We're going to talk about performance after the midterms, the fears behind the sell-off, and we're going to dispute some of the loudest bears on the street. And then the main entree will conclude with the four stocks that I believe are great dip buys right now that you'll regret not buying heavily. And the only thing I ask for all the work that goes into making a video like this is that you hit that like button and also don't forget to subscribe and as always if If you're the one taking the ultimate risk, you better damn well be the one doing the ultimate frisk. Always do your own due diligence on all ideas presented. Okay, let's get to work. So here's the S&P 500. It closed Friday at 7,580, about 3% below its record. So the S&P 500, despite what all of the bears have been saying, is not crashing. It's really rather constipated. Now we can argue whether crashing or constipation is more comfortable. Neither really are. But since mid-September, it's been stuck in a box between about 75.50 and 78.20. It did close below its 50-day on Friday. So the short-term trend is weak, but it's still almost above the 200 day. Now the tech heavy Nasdaq, the triple Q is where the pain is about 9% off its record close. So the question everybody is asking is this the holy dip that we've all been warned about? Well, let's look at the historical data to understand. So first thing to know is that dips like this one are completely normal. The S&P has had a 5% pullback in almost every single year and a 10% correction comes around almost once every 1.8 years. That's just the cost of owning stocks. You get paid a premium because you're willing to deal with this volatility. The people that exploit the volatility and don't let the volatility exploit them are the ones that make the most money. Now, here's a stat I want you to remember. So most dips never actually turn into crashes. If you go back to 1928, when the S&P has fallen 10%, it went on to fall 20% only. four out of 10 times. And when it did turn into a big bad one like 2020, those were the best buying opportunities of the decade. One year after the COVID low, the S&P was up about 76%. So if this is the case, why is it that so many people are so scared of every single dip and there's unanimous fear every time the market goes down even a few percent? Well, because of the dot-com bubble. Everybody and their mother loves to repeat this quote. Let me know if you've heard this down below. It took 10 years to recover after the dot-com bubble. 10 years. Folks, if you hear that, what that person is actually telling you is they put every dollar in at the very top on one day and never bought another share. Nobody actually invests like that. This is hindsight analysis. I bought everything at the very top, just happened to do it at the very top, never bought before in my life, and then didn't buy the dip at all. So I went ahead and ran it. And look what I found. So if you put $10,000. in the S&P all at once at the dot-com bubble top in August of 2000. Well, by early 2003, that $10,000 was worth about $5,700, and you didn't get back to $10,000 on price until about May 2007, almost seven years. Now, say you started at the same exact top, but put in $100 a month instead. Well, by the end of 2003, you'd put in $4,100, and it was worth about $4,150. So you're back to about breakeven in three years, less than half the time. Same thing in 2008, all in at the top, more than five years to get back a hundred bucks a month back to even by November 2009, about two years. So the way that I look at dips is that as long as you're buying good assets at good prices over time and you're not full porting into one asset all at once, well, long term, you're going to do well. These are overall indices. Here's how fast you would have gotten into breakeven if you applied the same strategy on Apple. Amazon and Nvidia. So again, two great ways to exploit this number one buying good assets at good prices over time, or number two, directly attacking the volatility by buying the dip very, very aggressively during the periods of time where everybody is selling everything. And ideally, you'd probably do a combination of those two. Okay, let's go on to the midterm. So we're going to be voting for red or blue insider traders this next week. Now the consensus on YouTube and pretty much across social media is that midterms are a universal bad for the stock market and must result in a post-midterm crash. crash. Now, of course, anything's possible, but history says a very different thing. I went through every midterm election since 1950, and that's 19 of them. And 12 months after election day, the S&P 500 was higher in all 19, not most of them, every single one. And the average gain over those 12 months was close to 15%. There's also a seasonal sweet spot that a lot of people track from September 30th of the midterm year to June 30th of the following year, and the S&P 500 has been up in that window 19 out of 19 times 2 with an average gain of about 20%. This year, that window opened on September 30th with the S&P at about 7,652, and right now we're sitting a little under that. So by this pattern, we're near the start line, not at the finish line. How would this happen? Well, markets hate uncertainty. This election cycle has been extremely volatile and you have a lot of candidates straight out saying we need to ban AI data centers. But after the election is done, all that uncertainty is gone. And you have a clear picture of who's going to be in office, who has power, and what can get passed. Right now, it looks like the Democrats are likely to take the House and perhaps the Senate. Even if they all hate data centers, quite frankly, Trump will still have the veto power. And quite frankly, with that mix of power, basically nothing is going to get passed. They're not going to agree on anything. So that actually means the base case is stability for two years. I actually think markets will like this more than the Republicans winning, because if the Republicans win, perhaps you get more of the tariff cycles. But now Trump's tariff ability is going to be even more hampered. And quite frankly, regardless of what you think about the president, markets have not been big fans of his tariffs. So I actually think we have a pretty bullish base case here. So let's take a look at what people are actually scared of here. Take a look at Google. It spent $51 billion on CapEx in one quarter, more than double a year ago. Free cash flow came in at negative $9 billion. And management said spending next year will, quote, increase significantly, unquote. The headline wrote itself, Google can't stop spending. We'll go kaput. Well, look at what that spending is buying. Google cloud revenue up 103 beautiful percent and speeding up all year. 63%, then 82%, then 103%. The cloud margin went from about... 24% to about 36%, so cloud profit roughly tripled. Then there's Microsoft, where their Azure grew 48% faster than management guided. And here's the funny part, CapEx actually came in under forecast. Why? Well, because the CFO said, quote, some third-party capacity deliveries we expected in Q1 were delayed. Microsoft wanted to spend more and couldn't get it delivered, so that's actually a shortage. And Intel fell about 31% on Friday because PC customers are struggling with memory prices and availability. And why is memory so tough? So Titan, well, Intel's own CEO said this month that the AI boom will keep memory in short supply for two to three years. So even the bad news is AI demand news. Lots and lots of AI demand, too much really. Now the bear line that you've heard and drives me absolutely crazy is. If they have to spend this much, it proves they can't make money. It proves that this isn't a viable business model. What? Do you even know how CapEx works? If somebody says this, all they're doing is outing themselves, is not knowing what the heck they're talking about. Consider a restaurant. A restaurant spends money on a second location long before it serves one meal there. By this logic, any restaurant that's opening up another location is a massive failure because it's not immediately profitable before the meals start going out. The data centers Google built back in 24 and 25 are the reason cloud revenue just doubled. So the money isn't disappearing. It's just turning into revenue, but with a bit of a lag because that's how it works. You construct something that costs a lot of money up front and then down the road a couple of years later, that's when you start seeing the booming of revenue. Okay, next part. Why does everybody think this current market is a bubble? Why is that the majority opinion? Market tops historically tend to happen when everyone's euphoric. Right now, 41% of investors in the AAII survey say they're bearish versus a long-term average of about 31%. So being scared today is the popular opinion, and that's not what a top usually looks like. More people are interested in the AI bubble popping than what AI can do in the next five to 10 to 20 years. So why is this happening? Well, part of it is bots. According to Imperva, more than half of all internet traffic is now bots, not people, and a lot of what floods your feed after a red day is built to farm engagement. Fear gets clicks, and part of it is that pessimism just sounds way, way smarter. Bulls since the beginning of time have been considered naive idiots that don't even think about the risks. Michael Burry, for example, is considered one of the smartest people in the history of finance. There's endless amounts of people in the financial space that made oodles and poodles more money than he did. But it's not about making money. It's about seeing risks. It's way easier to get famous as a bear in finance than it is to get famous as a bull. And as so many of these bears have rose to prominence in just the last three years, thanks to the massive AI build out. Well, most of these guys are crossing their fingers that we get a massive crash. So they're proven right. But truthfully, it doesn't matter. We don't have to have another crash for for 30, 40 years. Once the market goes down 20% at any point in the next four decades. They will consider themselves correct and everybody will worship them for the end of time. And that's going to be great. However, the people that held all cash waiting for these big drops, that cash is going to be devaluing massively. Those bears are going to be richer than ever because everybody would have bought their products. And the everyday person is once again going to be waiting for the next bubble. In perpetuity, forever and ever and ever. But none of this changes what's actually happening in the companies we're going to be talking about today. So without further ado, we're going to break down the top four companies to buy the dip on heavily. Let's start with number four, Ultra Clean UCTT. So the giant machines that make computer chips from Lam Research and Applied Materials are full of ultra pure gas lines, valves, and subsystems. Ultra Clean builds a lot of that plumbing. Every time a chip factory orders more machines, Ultra Clean gets an order. Now the stock though has been beat down. So the 52-week high was about $144. Friday, it closed at $49.71, down about 66%. Meanwhile, last quarter's revenue was a record $759 million, up 49%, and they guided the next quarter above Wall Street. Now, why would I argue this is overdone? Well, it got crushed on October 22nd when Lamb Research, one of its two biggest customers, said its guidance would have been higher if not for some near-term supply chain constraints. But think about that. Lam could sell more machines if its suppliers could make parts faster. Ultra Clean is the supplier. And it trades around nine to 10 times next year's expected earnings. So what's the bad? Well, the bad is the gross margin is only about 17%. The two biggest customers are 61% of the revenue. So that's some serious concentration and they have been selling new shares. So there is dilution here. But if you're looking at catalysts, I mean, hitting the 800 to 860 million guide and any 2027 spending update from Lamb and Applied, those are some serious catalysts. Now, if you look at our back test, this is a cyclical stock. So I went back and looked at how it behaves after the cycle bottoms. Since 2008. Ultra Clean has had six years where it fell more than 30%. The year after, it was up in five of those six. And in four of them, it gained more than 80%, counting this year so far. And this year, after the July 29th low, it ran about 37% in just two weeks. So these are past patterns, not promises, but something to consider if you look at the chart. The chart is broken. The old July floor around 69.5% is now a ceiling. The floor is 44% to 46%. And the October 22nd and 23rd closes about 7% to 11% below. A close below 44% breaks the setup. Upside, let's say 55% to 57% first, then the gap at 61% to 64%, then 69% to 70%. That's about 40% above. Now, next, I want to talk about Credo, C-R-D-O. So inside an AI data center, servers and switches are connected by cables. For short distances, the answer right now is an active electrical cable, a copper cable with a smart chip inside that boosts the signal. Credo is the leader in this. Building an optical business on top of that, management expects to bring in more than $600 million this fiscal year. Now, the high on this company was about $309 in June. Friday, it closed at $150.99, down some 51% in the business. Well, revenue, $479 million, up 115 whopping percent. That's the seventh quarter in a row of triple-digit growth. Seven in a row. They guided the next quarter above Wall Street and expect the full year to grow more than 85%. So why do I think the sell-off here is overdone? Well, nothing broke. After earnings, the bar was just too high. Then it got caught in the chip sell-off. Using analyst estimates, it trades at about 24 times this year's earnings. For a company growing 85% plus, it has about $700 million of net cash. And the average analyst target is about at $284. That's almost a double from current pricing. Now, the bad, you do have some concentration here. And growth is slowing a bit as this company is maturing. I mean, it went from 272% Three quarters ago to 115% now. But again, this is becoming a rapidly maturing company and the overall revenue numbers are nuts. Now the catalysts are the next report in early December and the optical ramp updates on this can move the stock price a lot. Now, the chart, look at this floor, October 23rd, about $143, October 26th, about $145, Friday, about $144, three tests in six trading days, close below $143, breaks the setup upside $175, then $194 to $202, about 30% above. Next, we have Marvell MRVL. So the big cloud companies don't want to rely only on NVIDIA, so they design their own AI chips. And Marvell helps them build those custom chips and makes the chips that move data around the data center. Data centering is now about 79% of its revenue. So what about the beatdown? The high was at 330 in June. On Thursday, the same day, Alphabet had its worst day ever. Marvell fell 13%. Friday, another 10%. It closed at $196.40, down about 40%. And look at this. Year-over-year growth went from 22%, then 28%. than 37%. And the guide for this quarter is drum roll, please. 52%. Growth is speeding up. It's being a little speedy McSpeedy. At its October investor day, they raised next year's revenue target to about $20 billion. So why is it overdone? Well, the selling was the hyperscaler CapEx scare and the hyperscalers are Marvel's customers. But we just saw what they actually said. They said Delayed, not canceled. Spending more, not less, and Marvel is a big established company with about $1.7 billion of free cash flow over the last year. Buying back stock, the average analyst target is about $341. Now the bad, well, it does have about $5 billion of long-term debt, and the custom chip business does depend on largely a few giant customers. In terms of catalysts, you have the early December report against the $3.15 billion guide and the custom silicon ramp. Now the chart. So in early September, it bottomed around 200 to 201. Friday, it went through that down to about 190 and closed below. Thursday and Friday, each traded about 42 million shares, almost double the normal. That's pretty heavy selling or the kind of flush that marks a low. So what fixes the setup? Well, it closed back above 200, upside 218 to 223, then 245 to 252, about 25% above. We ran some backtesting on this one, and we've seen this movie before. In May 2025, it was down some 45% on the year, trading around $55, and people were calling it a former AI favorite, that it was gonna die and never wake up ever again. About 13 months later, it hit 330, roughly six times higher, and it happened again this year. At the end of April, it was around 158. By June 18th, it was at 330, more than double in under two months. Twice in about a year, the market gave up on this business, and twice the business dragged the stock back up, and we love to see. that disconnect between the business and the stock price. Now, number one, Alphabet, G-O-O-G-L, the steadiest one on the list and the stock that is at the center of the wholesale off from this past week. And look at this beat down. The high was 4.08 in May. Friday, it closed at 2.79 and 84 cents, down about 32%. If you look at this quarter, I mean, cloud was up 103%, revenue up 25%, operating income up 30%. Search, the business AI was supposed to kill. It still grew 12% and Gemini just passed a billion users. So why do I think this is overdone? Well, after this drop, Alphabet now trades at about 14.6 times trailing earnings. That's the lowest since 2012. In 2012, Google was a search company with no cloud business and no AI and far less diversification across pretty much every sector. They basically had no diversification. Today, the cloud is doubling in printing profit and you're paying a 2012 price for this company. 58 analysts cover it and the average target is about 407. The bad? Well, bears are going to tell you, look, the free cash flow is negative because this company is investing so much into AI and consumer behavior is changing. So people aren't going to be using search in the same way, which is going to hurt Google, which had a monopoly on search. I don't think that's the right way to look at it. This company is investing heavily in building out to be a dominator in this very lucrative future space. And I think when you're looking at their TPU deals and their Gemini and their overall search volume across all their different platforms, including the one you're watching this on, well, I think right now is a great time to snap up the discount. If you look at the back test, Alphabet has only had two years where it fell more than 30%. In 2008, where it was down 55% and 2022, where it was down 39%. The year after, it gained 93%. 57% respectively. And we don't even have to go back that far. This March after the last CapEx scare, it bottomed around 278. By May 18th, it traded as high as about 408. That's roughly 47% in about seven weeks from almost the exact same price it's sitting at right now. This company that's at the center of the AI bubble fear just had its best cloud quarter ever. And it's at its It's cheapest multiple in 14 years. So I think this is a great buy. I think you're going to be amiss not buying the dip in Alphabet. Anyways, folks, there you have it. The latest on the market and the top four stocks that I believe are a great buy right now. Let us know your favorite ideas down below, which one of these you are the most excited about, and we'll see you in the next video.