AI & Bioscience w/ Miles Harrison (CEO of Conexeu), SK Hynix IPO & Blue Origin Fundraise

24:39Gulf allies who had nothing to do with the original dispute. And now Kuwait confirmed that they intercepted two ballistic missiles and 13 drones, and Bahrain confirmed interceptions of its own. Now Iran's parliament released a statement saying the U.S. must, and I quote, recognize the new Iranian order in the Strait of Hormuz. That is a sovereignty claim over a waterway that carries 20 percent of the world's oil supply every single day. This is nuts and I'm over it. I have to wrap it up. I can't do this anymore. But more specifically, Robert, what does this mean for everyone listening right now and their money?

25:15Yeah, it means you're right. We have to get this over with. This is a geopolitical risk repricing event. For months, oil has been falling back towards pre-war levels, and the market was pricing in a soft landing where energy costs weren't a variable anymore, and that assumption might now be wrong. If crude oil stays above that$80 a barrel for any sustained period, it feeds directly into inflation expectations. And if inflation expectations rise, the Fed has less room to pause, let alone cut rates. Remember, we just got the June jobs report last week and only 57 ,000 jobs were added. This is the biggest miss of the year.

25:52And investors were starting to believe the labor market was cooling enough for a rate relief. And this oil shock throws that entire thesis into question. And I know this seems like a lot of gloom and doom, but Austin, walk us through it. Yeah. So when you think about your portfolio, and we've kind of played this energy game all year long inside the Rich Habits Network, but energy stocks are the obvious near term hedge if you're someone that's like freaking out about volatility. XLE, Exxon, ConocoPhillips, Chevron, they all benefit from a higher crude oil per barrel price. But the bigger risk is what does this do to consumer spending, corporate margins, rate sensitive sectors like real estate and small caps?

26:32You know, Robert, we just hosted inside the Rich Habits Network, our weekly live stream that takes place every Tuesday. And I had shared a chart with everyone that had illustrated how oil right now, as of, I guess, like a week ago, was one of the most shorted names with 40 % of managed money, like money managers being bearish on oil and shorting it, the third highest reading in 15 years. So now what I said is I said, wait a second, when everyone, right, 40%, right, that's, that's a lot, third highest reading in 15 years, when a lot of people have a consensus view of something being bearish and bad, that usually marks a local bottom for that specific name.

27:07That said, I don't know how high oil might go from here, but if you kept a couple oil names in your portfolio like we have this year, maybe it's a good hedge right now against market volatility. Yeah, great breakdown, Austin, because we all know the markets don't like uncertainty. And right now, every single day, it seems like there's volatility around all of these headlines. And this has been the biggest narrative we've faced with this around war and all the uncertainty around oil. Now let's jump to our second story today, Robert, which I think is an exciting one, which is the SK Hynix IPO taking place this Friday.

27:41So on Friday, a company that most Americans have never heard of is expected to begin trading on the NASDAQ under the ticker symbol SKHY. The company is SK Hynix, and the listing is set to raise$28 billion, making it one of the largest share offerings in modern history. For comparison, and I know SpaceX was massive, but let's talk about it for a second, right? Right. SpaceX IPO raised$85 billion. SK Hynix is going to be$28 billion. So, you know, about$50 billion short, but still pretty big if you ask me. Well, this leads to what we talked about a few weeks back leading into the SpaceX IPO of where is all of this liquidity going to come from?

28:21And this is a big IPO, even though we're looking at SpaceX just, you know, from a couple of weeks ago. And SK Hynix is a South Korean semiconductor company, and it is arguably one of the single most important suppliers in the entire AI supply chain. And I like that you alluded that most people don't even know what it is. It's kind of like reminds me of Taiwan Semiconductor. They're one of the backbones of AI, but because they're not in the United States, they're just not followed as much. And they make these high bandwidth memory HBM. And these are the specialized chips that sit on top of NVIDIA's GPUs and make AI training possible.

28:54Without SK Hynix's memory chips, NVIDIA's H200 and B200 processors are just looked at as expensive paperweights. I love that headline, and I'm going to say it, but yes, that's interesting to see. But without this memory, the processing units inside the NVIDIA chips simply cannot access or transfer data at the speeds required for modern AI and these LLM workloads. So Robert alluded to SK Hynix makes these high bandwidth memory specialized chips and the company actually controls over 50 % of the global high bandwidth memory market HBM. They've secured 70 % of NVIDIA's next generation HBM4 orders.

29:36So think Blackwell, Vera Rubin, like NVIDIA needs SK Hynix and their HBMs to ensure that the chips that NVIDIA is building in these stacks for large language models and AI training is actually useful. And their head of sales said on their most recent earnings call that client requests for HBM chip supplies over the next three years already far exceeds our production capacity. capacity. SK Hynix is already trading on the Korean Stock Exchange. They hit a$1 trillion market cap on May 27th. Now they're hanging around a trillion, a trillion three, depending on the day, but it is definitely something I'm keeping an eye on, Robert.

30:12Yeah, this could be a really good IPO for everyone listening and following along because I think it is going to sneak under the radar a little bit because everyone's talking about Anthropic, OpenAI, SpaceX and all that. And this is a really good one for everyone to watch. And when looking at it, Q1 2026 revenue came in at about$35.5 billion and profits surged fivefold year over year. The stock is up over 200 % year to date on the Korean exchange and Goldman Sachs, UBS, and every major bank has rated them as a dominant player in AI memory through at least 2027. And the U.S. listing isn't a traditional IPO.

30:50It's an ADR offering. What does that mean? It's an American depository receipt, meaning SK Hynix is issuing new shares that will trade on the NASDAQ while also remaining listed in Seoul, Korea. Trading is expected to begin Friday, July 10th, so keep an eye on it. Yeah, South Korean stock market's been on an absolute tear and an absolute roller coaster at the same time. The KOSPI is up a ton this year, driven almost entirely by SK Hynix and Samsung. Korean retail investors have been pouring money into these 2 and 3x leveraged ETFs on chip stocks, and regulators are beginning to be worried if this has turned into some sort of, you know, AI mania taking place over there.

31:29Yeah, I feel like AI mania is taking place just about everywhere where there's development in this sector. So SK Hynix wants access to institutional capital that doesn't panic sell on overnight KOSPI swings. We've seen that happen a lot. And they want to be valued more like NVIDIA on fundamentals, not leveraged ETF flows. And they also want U.S. passive fund inclusion. If SKHY gets added to major U.S. indices, the same automatic buying machine that just added SpaceX would start flowing into SK Hynix. Austin, that was a lot. What does this mean for you and your money? Well, right now, NVIDIA gets all the headlines and all the excitement.

32:10But the companies building the actual memory, the actual chips that make AI physically possible, have been trading at a fraction of NVIDIA's multiples over the years. partly because they were stuck on foreign exchanges that American institutions couldn't easily access. So when SK Hynix starts trading on the NASDAQ, American fund managers, ETFs, retail investors, all the above, will be able to buy one of the most critical AI memory suppliers as easily as they can buy NVIDIA or AMD. Even if they eventually get added to the NASDAQ 100, that's hundreds of billions of dollars of index tracking pools and funds that start automatically buying this stock.

32:47Now what's interesting though, and I saw a chart on X about this, is that we are in a memory shortage. So I want to make sure we're on the same page here. Samsung and SK Hynix have been able to quadruple their profits year over year because they were able to raise prices on their products by 30, 50, 80 percent to their customers and their customers had to pay those higher prices because of the shortage. They were the only ones selling memory. But in the back half of 26 and the first half of 27, I've seen rumblings by banks online, specifically on X, talking about how we'll be in a surplus. So I don't know if that same pricing power is as durable as investors might think.

33:26So if you are looking into an SK Hynix IPO, or you're looking into Micron and looking into these names to add it to your portfolio today, just be weary as to how important the surplus versus contraction and restriction around their products and how that could impact the durability of their pricing. Yeah, I think that's a great point for everyone to understand. Is AI overhyped at this point? Is there a chance for this bubble that we're hearing about any of those things? But I think for me, for people's portfolio, the question should be simple. Do you want exposure to the AI trade at the infrastructure layer or the application layer?

34:03SK Hynix is as infrastructure as it gets. With 50 % of the HBM market share, 70 % of NVIDIA's next-gen orders, and demand exceeding production capacity for the next three years. The AI trade is definitely globalizing, and the NASDAQ is becoming the World Stock Exchange, and every major AI company on Earth wants to list here because that's where the capital is. It certainly is. And NASDAQ, if you're listening, I'd love to come check you out. We've been in the New York Stock Exchange a dozen times now. Would love to go check out the NASDAQ. Email us at richhabitspodcast at gmail.com. All right, Robert, our final story, the U.S.

34:41Treasury warning us about an AI bubble. So the NOTUS, which is a nonpartisan news outlet, obtained a draft internal report from the Treasury Department that compares the current AI market to the dot-com bubble. Career Treasury analysts wrote a report for Secretary Scott Besant, Fed Chair Kevin Walsh, and federal financial regulators warning that AI firms are now more deeply entrenched in the U.S. economy than their dot-com predecessors. And if the bubble pops, the damage would be systemic. Here's what the analysts found. The AI sector is increasingly concentrated within a small number of firms.

35:16It's heavily reliant on private market financing as well. It's massively invested in physical infrastructure data centers that only pay off if growth targets are met. Supply chain disruptions, geopolitical tensions, electricity bottlenecks, and utility shortfalls could all stall this momentum. We've been talking about this for a very, very long time, finding those picks and shovels within those sectors. And if AI companies can't monetize their products fast enough, the effects would ripple through the big banks, the hedge funds, private credit markets, chip manufacturers, cloud providers, and even utilities, the entire financial ecosystem.

35:52Now, this part stood out to me, Robert. So the analysts that wrote this report noted that fewer retail investors are backing AI than backed the dot-com stocks of the late 90s. Thinking about on the surface, okay, that just means that less retail investors might get torched if things go bad. True, maybe, but it could also mean that the AI trade now is dominated by institutional investors, right? They've had to raise this money from someone, and if retail's not buying, the pensions, the endowments, the hedge funds, the banks, those people are giving them money. So if AI and growth AI and all this stuff starts to, you know, stumble, those losses hit institutions that the rest of the economy now depends on.

36:30The analyst wrote that a sustained AI downturn would have a greater impact on institutional investors fundamental to economic stability than the dot-com crash did on retail investors. Yeah, two weeks ago, June 25th, Treasury Secretary Besant stood in New York and praised the hyperscalers for spending$750 billion on AI build-out this year. He compared it favorably to the dot-com era and asked, could we do at least that? Can we do maybe more? At the G7 meeting, when other leaders raised concerns about AI safety and job losses, Besant told them, quote, the biggest risk to AI is China getting ahead of us.

37:06Now, the weird part, though, Robert, is while he's saying that his own analysts sitting in his own building are writing the report that we're talking about right now, saying the biggest risk is the bubble popping. Treasury Department spokesperson dismissed the report as unvetted and not representation of the agency's policies and views. And they said the official position of the secretary in the U.S. Treasury is that AI will be a key driver of America's new golden age, which like, yeah, true. That's great. But also like really interesting to see kind of how this like back and forth is going. And just on July 7th, the Bank of England released its own financial stability report warning that an AI crash should cause a 2.2 % drop in UK GDP and plunge Britain into a recession.

37:46And Governor Andrew Bailey flagged cyber vulnerabilities, high leverage in AI sectors and correlated investor behavior as systemic risks. Senator Elizabeth Warren has proposed a bill requiring financial firms to disclose their AI exposure to the treasury and for the agency to report how the financial system would be affected by this AI downturn that they're talking about. Sounds to me like a lot of scare tactics and mumbo jumbo and people are just doing their jobs of like, let's think of complete downside, the worst part of this. But what's your take, Robert? What does this mean for you and your money?

38:23It's a tough one because we see all the CapEx spending. We see all of the advancements in AI. There's so much build out and infrastructure happening in the United States. But let's be clear what this is and what it isn't. This is not a prediction that AI is going to crash. The treasury analysts themselves said AI companies are more mature, more profitable, and have healthier balance sheets than dot-com era firms. I think, Austin, about a year ago, we did a whole big thing about this because back in the dot-com era, I lived through it. There just wasn't the revenue. There was a lot of hype and hyperbole around these companies, but there just wasn't the revenue and profits that we see today.

39:00But here's what it is. It's the first time the U.S. government's own financial analysts have formally documented the systemic risks of the AI trade. Yeah, no, it definitely is. And I think, you know, if I'm someone listening right now and I'm like, oh, my gosh, is the secretary telling me that the AI bubble's here and we're all going to get cooked and torched and it's over? Like, no, not at all. Like, I think a lot of this is just noise. And as someone who owns the S &P and the NASDAQ and a ton of NVIDIA and AMD and Micron, like I'm just ride the wave, baby. Like obviously the entire earth is being rebuilt right now with AI in mind.

39:34And NVIDIA is going to be a$10 trillion company sometime in my life. AMD will be a$5 trillion company sometime in my life as that continues. So four major hyperscalers spending hundreds of billions of dollars in CapEx. That money's got to flow to something. It's flowing to NVIDIA, to the SK Hynix, the data center REITs, the utilities, construction firms. Like that's GDP growth if you like it or not. If you own the S &P 500, you're already massively exposed to AI through the Mag 7. The question isn't whether is AI real. It's obviously real. The question is whether the hundreds of billions of dollars that the Magnificent 7 is spending on capital expenditures is going to be sustained if revenue growth does not keep pace.

40:13We've seen great revenue growth. Alphabet is a wonderful example of this. So I think it's great. Last thing I'll leave you here with, Robert, as we talk about this, NVIDIA right now at$194 a share, whatever it is today, is now trading below 20 times their 2026 earnings expectations and below 15 times their 2027 earnings expectations, which is the cheapest valuation since 2019 and the lowest valuation multiple of the AI boom. literally when i was writing this with robert i was like oh i need to go buy more nvidia stock and i put 10 grand into nvidia at 194 now who knows where it's going to go in the short term i don't care but i'm thinking about the next three five seven ten years into the future hopefully a four and a half trillion dollar valuation nvidia bodes well for my portfolio in the future as obviously they're going to grow their earnings so much over the coming years nvidia is still the ai platform layer across GPUs, networking, software, robotics, physical AI, people selling quality stocks out of their portfolio because they're bored and they're looking for the next, you know, micron or the next insert other company here that goes up by 200 % in three weeks.

41:23Like that is a terrible mistake. Do not make that mistake. Know what you own and dollar cost average into durable blue chip stocks and ETFs and index funds in your portfolio. I love that so much because how many times in the Rich Habits Network does someone DM us or ask us live, what's the next Palantir? What's the next NVIDIA? And now it's what's the next Micron? They're always chasing the next when we still love these companies. I think AMD is cheap. I think NVIDIA is cheap. I think Amazon is cheap. There's so much opportunity right in front of people, but they're always chasing the next thing.

41:57And I just love that you brought that up and broke that down for us. So Austin, before we go to our radar points, support from this show comes from VCX, the public ticker for private tech. For generations, American companies have moved the world forward through their ingenuity and determination. And for generations, everyday Americans could be a part of that journey through perhaps the greatest innovation of all, the U.S. stock market. It did not matter whether you were a factory worker in Detroit or a farmer in Omaha, anyone can own a piece of the great American companies. But now that's changed.

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43:04This and other information can be found in the Funds Perspectus at GetVCX.com. This is a paid sponsorship. All right, Robert, let's now jump to our radar points for this episode. I've got three great radar points, Robert. I know you've got three as well, so I will kick us off. The first one being the UAE has now certified the world's first commercial vertiport, and Joby Air Taxis are definitely going to benefit from this. So the UAE just became the first country on Earth to certify a purpose-built commercial vertiport for electric air taxis like Joby. The facility, called VDX, sits next to Dubai's International Airport and was certified by the UAE's General Civil Aviation Authority for full commercial operations.

43:44operations. Joby Aviation has a six-year exclusive contract to operate air taxis out of Dubai using its S-4 aircraft, which carries about four passengers at a 200 mile per hour speed with zero emissions. I think that's awesome, and I hope to see more of these VertiPorts hopefully around the United States. My second point to talk about today is Eli Lilly's Red Hatru Tide results that I think are insanely interesting. So Eli Lilly's next generation obesity drug, Retta Trutide, Retta, that I'm sure a lot of you all have seen on Instagram and TikTok, just delivered their phase three results that make ZepBow look like a warmup.

44:25In the Triumph One trials, patients on the highest dose lost an average of 85 pounds over two years, which is a third of their body weight, matching outcomes that used to require gastric bypass surgery. It's the first drug in its class. Eli Lilly is expected to file for FDA approval by Q4 this year. Seven more phase three readouts are still coming in 2026. All lands as Medicare just started covering GLP-1s for obesity at$50 a month on July 1st. And a Gallup poll this week showed 11 % of Americans are now using GLP-1s. I own Eli Lilly stock. I would encourage you all to do your own research and perhaps nibble on the stock as well.

45:01My last point here, Robert, and this one's kind of dystopian and weird, but like I'm actually looking forward to it. The first full-length movie starring an AI-generated actress is coming sooner than you think. A full-length film called Misaligned is heading into production starring Tilly Norwood, an entirely AI-generated actress created by the AI studio Particle 6. It's built as a comedy drama set inside the Tillyverse, with traditional writers, editors, and directors working alongside some of these AI creators. Particle 6 claims using Norwood instead of human actors slashes production costs by 90%, which is exactly what SAG-AFTRA is afraid of.

45:41The Actors Union called it a threat that devalues human artistry and uses stolen performances to put actors out of work. This comes after Dreams of Violet, a 75-minute film made entirely with AI video generation, and no human actors became the first fully AI-generated movie accepted into a major film festival. That, to me, is going to be the start of a very interesting secular growth trend of AI-only actors, actresses, videos, movies. Like, figure out how to profit from that. That's not going away, in my opinion. Yeah, your radar points are fire today because I think about, like, we've been talking about GLP-1s and the picks and shovels and how to make money in that sector.

46:22And Eli Lilly is just right at the forefront of that. But then also, you think about Hollywood moving forward. You know, these actors that are used to getting 20, 30, 50 million dollars of film, I feel like they're going to be cooked and we might see a lot more of them in TV commercials coming soon. So we'll see more people that are A and B listers doing these insurance commercials sooner than we think. So let me just go through my radar points real quick, Austin. SpaceX is now included in the NASDAQ. They officially joined the NASDAQ 100 index on July 7th of this year, trading under the ticker symbol SPCX.

46:55the aerospace giant that everyone knows made its debut June 12, 2026 for their IPO and was fast tracks the index. We're keeping an eye on it. We think SpaceX is going to be a great long-term buy, but just not yet for me. I want to see that price come down a little bit more. Now here's my favorite one today. 43 % of Gen Zers claim that they need a side hustle to survive. Surveys indicate that anywhere from 48 to 57 % of Gen Z actually maintain active side gigs with these ventures accounting for up to 57 % of their total income, which is just a crazy stat to me. So for many, the wages from their primary nine to five job are just no longer sufficient to keep up with the rising cost of living.

47:38I see this a lot with my younger employees and we see these headlines a lot, but I was shocked that 57 % of their total income is coming from the side gigs, not their primary job. And my last radar point today is Jeff Bezos' Blue Origin is raising$10 billion at$130 billion pre-money valuation, according to NYT Dealbook, making the first time in the company's 26-year history that Bezos has taken outside funding. Until now, Bezos has personally bankrolled the entire operation. And this is something we need to keep an eye on because this is very, very important after the SpaceX IPO. And it's also interesting because Austin and I have been talking for a long time about Rocket Lab and AST Space Mobile valuations and the stocks and what they bring to the table in this space race that's going on right now.

48:29So we'll keep an eye on those for the future. I really like that call out on Blue Origin. I mean, I'm not saying that they're going to become the next SpaceX or anything like that, but$130 billion valuation and Rocket Lab at$50 billion. And they have a very similar business model. It's like, is Rocket Lab undervalued right now? Like, I don't know. I think that's interesting. So good call outs, Robert. Appreciate everyone hanging out with us on this week's episode of the Rich Habits Radar. Be sure to go check out ConnectsU and all the fun things that they've got going on. More about that in the links in the show notes below.

48:59And don't forget about the seven-day free trial taking place inside the Rich Habits Radar. I talked about oil being a shorted name right now by money managers. We talked about that on this episode, but we talked about it for this episode inside our weekly live streams. Like we talk about so much incredible information. It's a seven-day free trial. So join, get a live stream completely for free. See if you like it. If you don't, that's fine. No problem. But if you do like it, you also get invited to invest alongside Robert and myself. And we are investing in the coolest pre-IPO companies. Thanks, everyone.

49:32And we'll see you tomorrow for our Q &A episode.

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