This post was originally published on this site.
00:00 Speaker A
Tom, what do you like in terms of uh AI trades into next year? Is it still the tried and true? I mean we still staying long Mag 7?
00:12 Speaker B
to a point, but I think we’re going to see some pretty massive bifurcation. So I don’t think that I think that’s sort of the next evolution of this trade where there are going to be winners and losers within the mag 7. If I had to pick one stock that I think is probably the my favorite, it’s it’s Google because of Gemini. And I think this is again, this is this is absolutely a code red for Open AI because Google has such a dominant position in search, it’s very easy for people and enterprise to simply layer on Gemini on top of what they’re doing as opposed to going to a new chat GPT or something like that. And so I think the Google looks very attractive. I think companies like Oracle that are that are not overextended financially, but are sort of raising eyebrows with a lot of the spending that is tied to Open AI. I think that that companies like that could struggle. So for me it’s not, it’s not all the Mag 7’s going to
00:55 Speaker B
do well. There’s going to be some pretty serious bifurcation. We’ve seen it in the last say, two months of 2025. I think that gets worse in 2026.
01:04 Speaker A
Ivana, going through this process, you know, the two the two finalists for this award were Nvidia and of course Open AI, which has won the award. But throughout the process, Ivana, we never even, we never really even mentioned Meta. I mean, do you how how much of an AI play do you view Meta at this point?
01:28 Speaker C
Well, Meta is a real AI play on the application side, but we haven’t really seen them showing benefits from this new wave of investments, right? So, that’s really going to be the key to watch going into next year, whether you’re going to they’re going to be able to leverage this next wave of investments into returns on invested capital. So, we saw them being able to do that with the first generation of GPUs, right, when they were facing a lot of competition from TikTok and they started implementing AI and they were really able to improve their algorithms significantly. Now, the next wave is going to be whether they’re able to introduce marketing AI agents that can help you manage your exposure, marketing exposure effectively. And I think that’s coming, it’s just going to be a question on when, right? So we’re trying to look for early signs of that being effective and offered at a low cost.
02:22 Speaker A
Julie, over to you.
02:24 Speaker D
Yeah, I just wanted to mention two points here. First of all, if you look at the recent sell off that we saw in stocks and then the recovery, the recovery has not been led by tech. It’s been led by consumer discretionary and financials and industrials. So the broadening that we, you know, have been talking about for a long time, it’s starting to happen a little bit. It might be short-lived, but it is happening. And point two, and this is something that investors have been bringing up with us as well, is that the AI trade is not going to be limited to AI or even tech companies at all, right? Investors are increasingly going to be looking to companies across industries, how they’re leveraging AI in ways that we can’t even predict yet um in order to improve their businesses. And so that’s something I think we’re going to start to see and really start to look for next year when that starts to materialize, and that’s going to be drawing some investing dollars as well.
03:17 Speaker A
No, good point. Julie. Ivana, let me get back to you real quick. Do you view Nvidia, you know, Tom uh bullish on on Google Alphabet, is Nvidia still the most purest way to play the AI trade?
03:32 Speaker C
Well, it’s certainly the purest way to play the AI trade, but you’re not getting broad exposure, right? So it’s really focused on the hardware side. So if you’re looking to play more of the application layer, I think then Google would be a better, better way to get access to that. I think where we stand is we are looking to Julie’s point for broader implications of the AI trade and and trying to find opportunities that maybe are not on people’s radars. So one example is the space economy. I think that’s going to be really impacted here if we can actually uh get these data centers operating in space. Other examples are cybersecurity. So, I think from where we stand, Nvidia is a really good play way to play the hardware side, but they don’t give you a broad exposure to to AI anymore.