00:00 Speaker a
I was talking about AI fatigue coming here, I saw some weaknesses in Nvidia. I think this morning, interesting notes on AI and Barclays, how big the industry is, um, you were listening a little more of their paper and calling.
00:09 Brook DePalma
Yeah, I was now getting calls listening to their stories, comparing the AI boom to the Dotcom bubble and why it's not necessarily like the Dotcom bubble.
00:20 Brook DePalma
First of all, the spenders during the dotcom bubble were telecom companies. They were comparing CAPX to sales. They say it's now up 25%. At that time, it increased by 40%.
00:36 Brook DePalma
They also say that communications rely heavily on credit market debt. That's not the case with a hyperscaler that is washed away with cash. They also talk about hyperscalers being a margin business.
00:52 Brook DePalma
And, I should say that their operating company is operating expenses, but their revenues are increasing at a faster pace. That's why Barclays says they actually see a strong foothold in AI themes.
01:03 Brook DePalma
They haven't seen the derailment to talk for the next 6-18 months. Yes, there is a risk. Yes, they're also talking about euphoria in the market. The stock market is currently growing euphoria. We all know that.
01:17 Brook DePalma
But when it comes to the overall AI theme, I say that when it comes to hyperscalers, I'm on a strong footing.
01:21 Speaker a
Brent, really fast. The last words to you. Would you like to buy dip with your AI name?
01:25 Brent Shooting
Look, I don't think iii Barclays is right. I think there is an echo from the II.com era. That doesn't mean they are exactly the same.
01:33 Brent Shooting
The risk is that people set prices as if Barclays was right, and I think that's what I'm encouraging people to own something other than AI. Therefore, don't focus solely on AI stocks. This is because there is a risk that people who are already priced in a market that is roughly the same level as the latter half of 1999 are not as they imagined.
01:50 Brent Shooting
Instead, we focus on the cheap portion of the market. Because I think evaluation works long term. I think history will repeat itself. And I think that among the average inventory of the S&P 500 and small and medium sized US trades at a relative valuation at exactly the same level as 1999, we have a good year ahead for some of the market.
02:04 Brent Shooting
Well, that's going to keep me focused on people who are diversified and not concentrated.
02:08 Speaker a
I feel that hot take. That's the hot take I need this Thursday morning. Thank you to the opening bid round table, Brent Shooting, Brook de Palma and Annes Ferrell.
