00:00 josh
Pillar number one, of course AI, investors are very excited, Tom. It helped sustain this market in 2025. I’m curious how you see AI trading and trends evolving in 2026, Tom.
00:30 tom
Hi Josh. Thank you for using our service. And Happy New Year to all of you. Well, we talked about the four pillars of the rally, and the first and most important one is, as you said, AI. There has really been an updraft that has lifted all ships, not just this year, but over the past three and a half years. But we think that will change a bit in 2026. And the point is, that doesn't necessarily mean it's going to go away, but instead, I think things like the AI craze are going to be a lot more similar in Q4 than what we were talking about in Q2 or Q3. What I'm saying is that it's broken. So not all tech stocks will run away. It's going to be a winner's choice, like Micron, for example, and a loser's choice, probably Oracle and in some ways Qualcomm. I'm not saying these stocks specifically for 2026, but just as an example of the need to be selective as AI matures.
01:41 josh
Now, let me ask you, if AI breaks down further next year, whether I'm a viewer or an investor, I'm listening to that. So, Tom, how do we tell the winners and losers in this AI-divided world that you're describing?
02:00 tom
To me, I see AI as a maturing cycle. And actually, the first stage was kind of an epiphany stage, right? Well, you can do this! To do this, we first need semiconductors. And now we're trying to use up and buy all the semiconductors we can. And clearly, Nvidia, Broadcom and Taiwan Semi are benefitting tremendously from this. Now, we can see that it is gradually evolving into a company that is truly at the cutting edge. Probably my top choice for AI in 2026 will be Google. I like Gemini 3. I think their dominance in search gives them a huge chip in the game with Open AI. So I like Google from a search perspective. I also like the memory. Because that's kind of the next phase of building this data center. Requires computational ability. Now, suddenly you need all the memory to power everything you need. So I think the infrastructure efforts are evolving towards memory on the infrastructure side, but also from kind of the hyperscalers, which I really like about Google with YouTube and with Gemini 3.
