00:00 Speaker A

I just think it’s time to put to bed uh this constant fear that the AI trade is peaking. I it’s done. I mean every piece of news that we’ve gotten the past seven days has been positive.

00:12 Victoria

Yeah, there’s definitely a fear that that’s what has been almost the sole driver of this market going higher and higher. And so there’s this concern that are we going to get some of the the positive sentiment behind AI, is that going to pull back and that’s going to be bad news for the equity market. But like you’re saying, there is support here. I mean, one of the things I’ve looked at is when you talk about the CAPEX with these companies, I was concerned about free cash flow. We have seen that come down a little bit, but earnings continue to support these companies. And so I think when you see these deals being made, when you see the CAPEX that’s there, when you see earnings support the numbers that are coming out, then I think you have to kind of ride this train and go along with it, not bet against it right now. I mean, Nvidia is our largest holding um in our large cap core strategy and it’s that for a reason. So I do think there’s more room to run here and you want to make sure you have exposure to some of these names in your portfolio.

01:06 Brian

Victoria, let me uh, as the kids would say, double click. I’m going to double click on what you just said about Nvidia. What other names, if you own Nvidia, what else are you invested in when it comes to AI? and do you need to own a basket of AI stocks when you can own Nvidia and just have that pure play that is seemingly crushing everyone else?

01:32 Victoria

Okay, so it does make me a little bit nervous, Brian, when we want to put all our eggs in one basket for that. So, from a pure diversification standpoint, I would say you want to spread that out. But look at the deals that are being made. I know we might talk about that a little bit more later. So I think there are other opportunities that you can have. We have exposure to Broadcom, we have exposure to Qualcomm, um we have a little bit of Lam research in there. There’s some other elements within that space that we have exposure to and I think you want that. It’s not Nvidia is going to be 100% of the game going forward. So there’s other opportunities. And as we know, as Nvidia continues to do well and builds things, it does lift the rest of those stocks as well. So I think there are more opportunities, but it is our largest holding in that space.

02:22 Brian

It’s almost that we’re at the point as where and I as a former analyst, I can’t believe I’m going to say this, maybe you just ignore for right now some of the valuations on these AI names.

02:36 Victoria

Oh, I unplugged my ears on that one.

02:38 Brian

Yeah, yeah, because I know, me too. And and Inez, it’s like the you just ignore some of the valuations on these names and ride momentum because that’s what we’re seeing in the markets.

02:45 Inez

Yeah, look, I mean you’ve seen an incredible run with Nvidia, with Micron. Uh look at what’s happening with Alibaba. Uh some of the commentary uh about Micron uh was basically the outlook blows out even the highest of expectations. I mean, this just all bodes uh well for the AI industry as a whole. And and the bullishness that Wall Street has had with the AI industry. And I will also comment that, you know, I was looking at some commentary from UBS uh about AI and the AI infrastructure growth, and they are looking beyond that. They are saying, look, not only uh does, for example, earlier this week, the the Nvidia Open AI deal, I know that you’ll probably talk about that as well. But look, that has uh also uh bled into the need for power for electricity. So you even saw this week also uh stocks like Constellation Energy and uh uh Vistra, uh the nuclear theme as well, because this entire AI generation is not just talking it’s it’s not just touching the chip stocks. It is also touching the entire industrial industry, it’s also touching utilities. So there’s many points to this AI theme.