00:00 Speaker A
Will the bullish AI trade return in December? What does your chart show?
00:11 Speaker B
Well, I don’t know that I necessarily see a lot of benefits in AI, but I completely agree with Dana. I think now is the time to really see if the Fed is going to cut rates this time, but I think we’ll see a rate cut in 2026. Therefore, if interest rates are not cut, there may be some tension spread throughout the market. But still, like she said, it’s inevitable, so I think it will be another purchase opportunity. When it comes to AI, I think we need to be careful. sorry. Where should I look? And we’re focusing more on the software side and the energy side. We’re looking here at the kind of infrastructure, not the companies themselves, which have historically done really well.
00:54 Speaker A
And on the positive side here, we’ve seen a resurgence in AI trading over the past week and a half. So there was a reversal with Nvidia that was reported a few weeks ago. It scared everyone, but things have stabilized a little bit, so I think that’s a good thing.
01:17 Dana
Yes, AI trade is back. We’ve also seen how productivity is affected when we talk about AI tools and Alphabet. So Alphabet really stands out. That means it’s up more than 20% in the past month. Um, TPU, uh, chip, this is not going to replace the GPU, but, uh, it’s a form of diversification for these hyperscalers. They are Gemini’s tools. So, earlier this year, Wall Street was very concerned that maybe Google Search would be affected. Well, they’re integrating it into their tools. And then one more thing: I was listening to macro strategist Lynn Alden. He was talking about how AI is heavily used in video. And who has a large video platform? Alphabet too. So, certainly, I think it’s instilled some optimism, even more optimism, even though you’re talking about maybe there’s a bubble in AI. Well, if you look at Alphabet and its performance this month, it’s been really impressive.
01:58 Speaker A
Yeah, Danna, for sure. I mean, the alphabet is, uh, definitely roaring. Is it the new canary for Coal Mining AI stocks?Throughout the year, we’ve seen a variety of companies take this accolade. Nvidia has, of course, led the way in AI, but Oracle took a bit of market leadership position when it announced a huge backlog in September. Is this the era of alphabets?
02:22 Dana
That’s an interesting question. Because what I’ve been waiting for in this trade is when are we going to see stocks that actually show productivity gains from AI, when are we going to see traction stocks? So, can we talk? There are certainly benefits. But, you know, to some extent, the productivity gains from AI aren’t making an impact on a wide range of companies. And companies like Google come out and say, “We’ve achieved XYZ. Our productivity has increased this much. Our efficiency is this much. This is what we expect. And if you actually give us hard numbers around that, I think that could certainly herald some clear skies.” And I don’t think AI will be eliminated from our economy in any kind of way. There will be winners and there will be losers. We don’t really know yet, but I think the market is kind of looking for that. Hey, we actually think we’ve cracked the code on how to use this. In fact, it’s amazing, we just signed another contract for infrastructure for AI. I also agree with your opinion regarding energy. As far as we know, I don’t think CAPEX is going anywhere. Well, you just talk to people in the real estate industry, right? It’s all data centers, right? That’s where all the money goes. Therein lies the deal. So I think energy is a necessary thing as a long-term trend. However, due to population growth, people expect their standard of living to improve over time. I think that’s the place to be. But when it comes to the AI vanguard itself, I’m really looking for people who are out there and have something like the benefits of AI.
