Catalyst Funds CIO David Miller highlights key opportunities across memory, cloud computing and AI infrastructure markets
Artificial intelligence continues reshaping the technology sector, and according to David Miller, several major companies remain well-positioned to benefit from the long-term expansion of AI infrastructure despite strong recent stock performance.
Speaking on Micron Technology (MU), Miller noted that even after a substantial rally, the company may still represent a compelling value opportunity. He emphasized that Micron is trading at less than 10 times forward earnings, while demand for high-bandwidth memory and storage continues accelerating due to AI workloads. According to Miller, the market often focuses heavily on GPUs, but advanced AI systems also require massive amounts of memory infrastructure, creating a significant opportunity for Micron as supply struggles to keep pace with growing demand.
Miller also highlighted Amazon (AMZN), arguing that many investors underestimate the strength of the company’s profit margins outside of traditional e-commerce. He pointed to Amazon Web Services (AWS) and the company’s advertising business as two extremely high-margin segments capable of generating strong earnings growth. Miller believes these divisions could continue expanding revenue and profits at rates approaching the high-20% range, potentially driving broader margin expansion even if overall company growth moderates.
Meanwhile, Broadcom (AVGO) was described as a premier AI infrastructure play. While Miller acknowledged that Broadcom is not inexpensive from a valuation standpoint, he characterized the company as an “AI infrastructure toll road” due to its exposure to networking systems, enterprise cloud software and custom AI chips designed for hyperscale customers seeking alternatives beyond traditional GPU providers.
As AI investment accelerates globally, investors continue searching for companies supplying the foundational infrastructure powering the next generation of computing.
