Nvidia, Micron sell-off overdone, but 2027 estimates are a stretch

The market turmoil that followed the "blue wave" opened with stocks described as "torched, blown up, and shredded to pieces." Sozzi's argument is that this reaction disconnected from company fundamentals, which he says haven't been destroyed this week at least not to the extent that would warrant the sell-offs. As evidence, he points to specific executives and businesses: Hut 8 isn't getting a work order stoppage that would derail fourth-quarter numbers; AMD CEO Lisa Su told him demand is "off the charts"; and Hilton CEO Chris Nassetta, nearly 20 years into the job, felt confident enough to share directional guidance for 2027 with investors. Nassetta's quote frames the political system as resilient and says he sees no real dramatic impact in the next two or three years.

Then comes the bad news: Sozzi writes that earnings estimates for 2027 and 2028 can no longer be believed. He squares this with his own optimism by acknowledging corporate fundamentals have taken a minor hit, and that data center projects in the US won't come to a screeching halt, but it will take a higher bar to get them built and be costlier to get the deals done.

The piece also touches on SpaceX, based in Texas, which he says is still operational this weekend, and on Musk's stated pace for Tesla robotaxis and robots in large numbers in 2027, used as another example that the political shift hasn't derailed long-term plans.