SpaceX raises telecom stakes as investors weigh four undervalued stocks

4 Stocks to Buy for the Long-Term While They’re Still Undervalued

The episode connects inflation, AI infrastructure, semiconductor spending, and SpaceX’s wireless ambitions to specific long-term valuation decisions.

3 key takeaways

1Hotter inflation and higher Treasury yields are testing equity valuations as technology earnings and AI infrastructure spending come under scrutiny.
2ASML’s constraints and TSMC’s larger capital plans signal strong semiconductor demand while raising questions about industry expectations and execution.
3The hosts identify Mondelez, Bristol Myers Squibb, L3Harris, and Alliant Energy as undervalued long-term opportunities.

Don't miss

Michael Hodel explains why SpaceX may pursue wireless spectrum as both a strategic option and leverage in negotiations with telecom operators.

The brief

Dave Sequeira and Sarah Hansen open with hotter CPI and PPI data, rising Treasury yields, and volatile equities before turning to AI companies and upcoming earnings.

The technology discussion weighs Meta, Tesla, Anthropic, Nebius, and semiconductor infrastructure against a central investing risk: being early can look much like being wrong.

ASML’s capacity constraints and TSMC’s more aggressive capital plans point to robust chip demand, while also testing how much future growth markets already expect.

Michael Hodel separates Starlink broadband from SpaceX’s direct-to-cell service and explains how spectrum purchases could become both a strategic option and negotiating leverage.

The episode ends with four long-term ideas—Mondelez, Bristol Myers Squibb, L3Harris, and Alliant Energy—selected for valuation and business fundamentals.

What was said on this episode

28 statements · 16 positive · 9 negative · 1 mixed · 2 neutral

Dave Sequeiraon PPI and CPI inflationNegative2:01
PPI indicates that future CPI inflation may remain elevated.
“PPI is often considered to be a leading indicator of CPI, meaning it's showing that we still have a hotter CPI yet to come as well.”
Listen at 2:01
Dave Sequeiraon Anthropic IPOPositive4:15
Anthropic’s IPO is likely scheduled for November.
“the IPO is still likely scheduled in November”
Listen at 4:15
Dave Sequeiraon Meta valuationNeutral6:42
Meta is currently considered fairly valued by Morningstar.
“it's now in kind of that range that we consider to be fairly valued”
Listen at 6:42
Dave Sequeiraon Meta and MusePositive6:47
Positive Meta and Muse guidance could drive further upside in Meta shares.
“if there is positive guidance, a lot of good, you know, market sentiment regarding Meta and, you know, specifically Muse, I think there's still some upside here left to come”
Listen at 6:47
Dave Sequeiraon Meta PlatformsNegative7:09
Meta could sell off if it fails to meet high expectations.
“there is a potential we could see a good sell-off here”
Listen at 7:09
Dave Sequeiraon CoreWeaveNegative10:52
CoreWeave bonds imply roughly a 50% default probability by 2031.
“the cumulative probability of default by 2031, which is the maturity date on those bonds, is now about 50%”
Listen at 10:52
Dave Sequeiraon CoreWeave debt financingNegative11:02
CoreWeave currently lacks access to debt markets.
“the debt markets are now closed to this company”
Listen at 11:02
Dave Sequeiraon AI infrastructure companiesNegative11:27
Fixed-income markets are highly skeptical of AI infrastructure companies’ near-term prospects.
“the market especially the fixed income market very leery about the near-term prospects for those companies”
Listen at 11:27
Dave Sequeiraon Western Digital sharesNegative12:04
Western Digital needs strong guidance to reverse its downward stock momentum.
“the company really needs to come out with a very strong outlook to be able to sort of reverse that downward momentum”
Listen at 12:04
Dave Sequeiraon Defense spendingPositive13:28
Defense spending has a long-term growth tailwind across allied regions.
“We still see a very long tailwind behind defense spending”
Listen at 13:28
Dave Sequeiraon RTX, Northrop, and LockheedPositive13:37
RTX, Northrop, and Lockheed appear broadly undervalued.
“They still look very undervalued across the board to us.”
Listen at 13:37
Dave Sequeiraon Defense stocksPositive14:17
Defense stocks remain attractive portfolio holdings.
“these are still that I think look very good for your portfolio”
Listen at 14:17
Dave Sequeiraon Progressive sharesNeutral16:57
Progressive is trading near the upper end of Morningstar’s fair-value range.
“The stock is now trading, I think, in the very top of that three star range”
Listen at 16:57
Dave Sequeiraon ASML capacityPositive18:00
ASML’s 2027 capacity is already fully booked.
“for 2027, they're already completely booked up”
Listen at 18:00
Dave Sequeiraon AI equipment stocksMixed18:32
AI equipment stocks need clearer 2029–2030 prospects for further appreciation.
“we really need to have much better clarity on the outlook for 2029 and 2030 for these stocks really to appreciate any much more from where we are right now”
Listen at 18:32
Dave Sequeiraon ASMLNegative20:20
ASML shares appear fully valued based on current earnings expectations.
“the stock is pretty fully valued here based on those expectations”
Listen at 20:20
Dave Sequeiraon TSMC sharesPositive21:43
TSMC shares trade at a 23% discount to Morningstar’s value estimate.
“Our value on the stock is still a four-star rated stock at a 23% discount.”
Listen at 21:43
Dave Sequeiraon Schwab sharesNegative22:47
Schwab is worth watching rather than buying immediately.
“I probably put it more on the one to watch list than necessarily having to buy the stock now”
Listen at 22:47
Michael Hodelon SpaceX wireless networkNegative26:05
Building a new wireless network from scratch would be extremely difficult for SpaceX.
“the prospects of building a wireless network from scratch are extremely daunting”
Listen at 26:05
Michael Hodelon SpaceX wireless market entryPositive28:07
SpaceX’s spectrum purchase makes it a more credible wireless-market entrant.
“it does make the company much more credible as a fourth entrant into the wireless market”
Listen at 28:07
Michael Hodelon T-Mobile sharesPositive28:35
T-Mobile is the most attractive of the three wireless carriers.
“T-Mobile actually looks the most interesting to me”
Listen at 28:35
Dave Sequeiraon Mondelēz InternationalPositive29:46
Mondelez trades at a 17% discount to Morningstar’s intrinsic valuation.
“Mondelez stock is currently right at five stars. It trades at a 17% discount.”
Listen at 29:46
Dave Sequeiraon Mondelēz InternationalPositive32:31
Mondelez remains an attractive long-term investment candidate.
“I still think this is a very attractive candidate”
Listen at 32:31
Dave Sequeiraon Bristol Myers SquibbPositive32:42
Bristol Myers trades at a 15% discount to Morningstar’s valuation.
“Bristol Myers stock is currently rated four stars, trades at a 15% discount”
Listen at 32:42
Dave Sequeiraon Bristol Myers earningsPositive35:23
Bristol Myers earnings are expected to rebound from 2030 onward.
“it will start to rebound in 2030 and thereafter”
Listen at 35:23
Dave Sequeiraon L3Harris sharesPositive35:41
L3Harris trades at a 27% discount to fair value.
“L3 Harris is currently rated four stars, trades at a 27% discount from fair value”
Listen at 35:41
Dave Sequeiraon L3HarrisPositive36:44
L3Harris is positioned to benefit from evolving defense spending.
“I think this is a company that is going to be well positioned to be able to benefit from that change in defense spending over the longer term”
Listen at 36:44
Dave Sequeiraon Alliant Energy sharesPositive37:47
Alliant Energy trades at an 11% discount to fair value.
“Alliant is trading at an 11% discount. It's enough to put it in four-star rating territory”
Listen at 37:47

Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.

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