00:00 Host <\/p>\n
When does this AI bubble uh pop? <\/p>\n
00:02 Kenny <\/p>\n
So listen, the chart, you know, gives me a little bit of reason to be cautious. The only thing that I just would dispute about that chart is that I think the times are very different. This story is not the dot-com story, right? This AI, uh, this AI, uh uh, zone that we’re in is not what it was in, you know, late 99, early 2000, when anyone who put a dotcom at the end of their name suddenly had crazy valuations. That’s not the story. So, while I’m a little bit concerned that valuations are stretched, and I think in some names they are and I think we saw that over the last couple of weeks when we saw money rotate out of tech into other sectors. I’m not in the camp that I think that this is a bubble that’s going to burst the same way it did in ’99, 2000 because these are real companies with real products with real revenues, which is very different than what it was in ’99, 2000 with the dot-com, you know, bubble and burst. And so therefore, I think it’s different. I think it’s changing the world. It’s the fourth industrial tech revolution that’s happening and I think we’re still very much in early stages. So I’m not in the camp that I’m worried about it exploding or imploding. Um, but I do think you have to be cautious as an investor not to get caught up in the emotion of it and make sure you stick to your discipline. <\/p>\n
01:21 Host <\/p>\n
Uh Kenny, to that point, uh we’ve seen the investors rotate out in the in the in the quarter that just completed out of the Mag 7, now they’re the lag seven, they rotated into Micron, SanDisk, Broadcom, you name it. Does that trade still intact? Or do you get value hunters going back into the Mag 7 ahead of earnings season in a few weeks? <\/p>\n
01:50 Kenny <\/p>\n
So, I think you’ve got and I said I’ve been writing about this in my note in the last couple of days, going into the end of the quarter as we saw that rotation and I think you started to see some of that going back in yesterday. You saw what happened in the Mag 7, it was up, you know, substantially yesterday. Um, and so I think some of those names are down 10, 15, 18%. Um and so they create opportunities. They were they were either kissing or into the oversold territory on their RSI scales and that then creates opportunity once again for institutional money will start to look at it, retail investors will start to look at it. And so I think as we enter now this new quarter in the second half of the year, that there will be some bargain hunting and some shopping in those names because again, I am pro and bullish on AI and some of those names and some of the ones that get dislocated, look at a name like Microsoft trading at 360, right? Uh, Nvidia’s off its highs. Those are names that I think are going to continue to power this move higher and that’s where I think it creates opportunity. And look, to your point, you’re showing it right now, Mi-Microsoft and and in the pre-market is up uh, is up seven bucks or you know, almost 2%. <\/p>\n
03:00 Host <\/p>\n
Jim, I think Kenny makes a good point. Uh unlike the dot-com bubble, these are real companies. It’s Microsoft, it’s Micron, they do real things. They churn out a lot of cash flow even though we’re investing aggressively in CapEx. What is the economic impact been of these AI rollouts? I I think we’re going to get a taste of this in the jobs report when it comes out. A lot of jobs being created, of course, on various infrastructure sites, but how have you seen this? <\/p>\n
03:29 Jim <\/p>\n
So, first of all, at the top, um, Kenny, you’re not bullish enough on AI. I I am, this is the biggest tech, this is the biggest technology of the last century. It is way bigger than the internet. It is way bigger than the PC revolution. It will end in a bubble, but that bubble might be years down the road. <\/p>\n","protected":false},"excerpt":{"rendered":"00:00 Host When does this AI bubble uh pop? 00:02 Kenny So listen, the chart, you know, gives…\n","protected":false},"author":2,"featured_media":92166,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[24,25,14291,48450,48451],"class_list":["post-92165","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ai","tag-ai","tag-artificial-intelligence","tag-brian-sozzi","tag-jim-bianco","tag-kenny-polcari"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/92165","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=92165"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/92165\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/92166"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=92165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=92165"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=92165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}