Davis Wilson:

Death By Leverage - A Warning

AI researcher and investor Leopold Aschenbrenner launched his own hedge fund, raised billions of dollars, and watched the fund swell to $45 billion all before his 25th birthday.

But Leopold's remarkable run ended on Thursday with a margin call. His fund was forced to unwind its public stock portfolio after the sharp pullback in AI stocks.

The irony? I own many of the same companies he did. And you probably do too. Micron, Nvidia, and several adjacent AI infrastructure stocks.

I didn't lose my portfolio. I assume you didn't either. Why? Because Leopold's biggest mistake wasn't the stocks he bought. It was the way he bought them. Leopold was using 4-to-1 leverage.

His fund was up 440% for the year through June as the AI trade ripped higher. But then came July. Its largest public holdings included Nebius, Sandisk, Micron, and CoreWeave. All four of these stocks were down more than 35% this month.

When the fund couldn't meet demands from its lenders, the lenders pulled the plug. Much of the portfolio was sold directly to rival hedge fund manager Ken Griffin.

Just like that, one of Wall Street's hottest hedge funds was knocked out of the market.

⇒ Read More Here

Chris Campbell:

Elon's Next Seven Days

Elon Musk owns 42% of SpaceX and controls 85% of the votes. No board to talk him out of anything. No meeting he can lose.

He built the company that way on purpose. A man who can't be outvoted doesn't negotiate. He gets what he wants. When Musk needs something, he buys the company that makes the thing.

He paid $109 million for a German automation shop in 2017, for the machines that build his machines. He paid $218 million for a battery company in 2019, kept the one process he wanted, and runs it in Texas today.

He bought a 30-person satellite startup in 2021 for its engineers, and their thruster flies on Starlink now. He sold xAI to SpaceX for a quarter of a trillion dollars – the seller and the buyer, same man, same afternoon.

That's what 85% buys you. The freedom to do all of it and not beg for permission.

Now here's why this is important: James believes he has identified Musk's next big buyout. And there's still time to position yourself ahead of Musk…

⇒ Read More Here

Enrique Abeyta:

Micron: Don't Tip the Raft!

One of the hottest areas of the stock market has been semiconductors, specifically companies that manufacture memory chips. And one of the most successful of the bunch has been Micron Technology Inc. (MU).

Since the start of 2026, EPS estimates for MU have gone from roughly $20 per share to over $150. The stock price followed right along. Shares exploded from $250 per share to over $1,200 per share in early June.

However, shares have fallen more than 40% in a month.

What happened? Nothing regarding the fundamentals. Micron is still positioned as a global leader in memory chips. AI spending is robust and continues to grow. The company even reported blowout results at the end of June.

The stock has been crushed anyway because Micron reached overbought levels it had never seen before.

My advice on MU? Hold tight. Micron is a great company, and AI spending will continue to increase. Based on recent price levels, I think you're likely to make money on the stock. But I wouldn't go out and buy it today.

Wait until the stock has gone higher for at least a month before buying. That's your signal that the coast is clear.

⇒ Read More Here