00:00 Speaker A
Those who are getting a little tired of Mag 7 may be a little more cautious considering the valuation and trade-outs. where will they go? Are there any obscure technology names that could be exposed to AI?
00:15 Speaker B
Well, that's interesting. So, AI trading itself is kind of evolving, right? So the first push was pure pick and shovel. Of course, Nvidia is the big winner. Of course, we will continue to be winners there as well. Um, but now we're seeing it evolve, right? I mentioned earlier about companies like SanDisk. What investors are saying now is how much memory do we need to run these large language models persistently? That's one reason stocks like Micron and SanDisk are doing well. So I actually think that trading is currently evolving and not necessarily evolving to where there are the most obvious winners. Well, the big question mark is what happens in the software space. Companies like Service Now and Salesforce have had somewhat disappointing returns on their investments in building AI. That's one of the reasons why companies like Alphabet were really big winners last year. Because when it comes to AI, they're a triple play. You know, they have a large language model, they're hyperscalers themselves, and they're able to deliver those kinds of enterprise and consumer applications. Well, I think the deal is still going on. Similar to the disappointment we've seen with Oracle's expansion, it's going to be a bit volatile as investors become more discerning about its spending. That's because Oracle is financed with debt rather than free cash flow.
