Why it's not too late to start buying red-hot AI stocks

Key Points:

• The Roundhill Memory ETF (DRAM) has attracted over $5 billion in a month, driven by strong demand in the memory supercycle, with core holdings including SK Hynix, Micron, Samsung, and others benefiting from rising prices fueled by AI computing needs.
• Micron's stock surged from $542 to $747 in a week, trading at a low price-to-earnings ratio of 9, reflecting strong pricing power and demand for high-bandwidth memory chips, making it a compelling investment despite rapid gains.
• Modine Manufacturing, a heating and cooling company with strong hyperscaler relationships, is viewed as an undervalued buy compared to peers like Vertiv and Eaton, despite some risks and mixed market perceptions.
• Nvidia-backed data center builders such as CoreWeave, Nebius, and Iren have seen significant investments and stock gains, though recent market enthusiasm has cooled; these companies are key players in AI infrastructure with strong ties to Nvidia.
• Despite traditional safe stocks like Johnson & Johnson and Cardinal Health facing challenges, high-growth memory and data center stocks offer substantial upside due to structural demand, with industry leaders like Amazon projecting profits starting next year amid heavy hyperscaler spending.