00:00So you're not a buyer of Tesla right now, and it seems like you're kind of moving away from the MAG-7 overall.
00:06I saw in your notes you say the next decade of AI disruption will increasingly happen beneath the surface layer.
00:12So tell us what stocks are beneath the surface layer that you would want to buy.
00:17Yeah, so at Futurum Equities, we created this Futurum AI-15 list, the non-MAG-7 names,
00:25because history doesn't repeat itself, but it often rhymes.
00:27During the dot-com era, all the attention was on the infrastructure, the structural arteries of the Internet, IBM, Verizon, AT&T.
00:37But that wasn't the hidden gems of that era.
00:40The hidden gems were the online marketplaces that were built on top of this foundation, the Googles, the Amazons.
00:46We at Futurum believe that that's going to be a similar lineage for AI, where all the attention is on the hardware, it's on the computes,
00:55but the real winners are going to be the applications built on top of all this hardware.
01:00And we've seen the first disruptor in that second stage in Palantir.
01:04Palantir is building the operating system of AI.
01:06Everyone is, there's going to be a multi-trillion dollars to spend in AI for the next couple years on LLMs, foundational models.
01:15In order for these LLMs to actually affect the real world, you need Palantir.
01:21So Palantir is essentially going to be the winner of all this LLM arms race, and you're seeing the stock reflect that.
01:27And the second name is Cloudflare, for example.
01:31A lot of people don't know about Cloudflare, where they treat them as a CDN company.
01:35But it's so much more than that, because they're creating this offering in this AI boom, where it's creating these AI hotspots closer to where the real action is, a.k.a. the edge.
01:47You don't have to go straight to the data center or hyperscaler.
01:50So that speed is really important, especially when AgentaGuy hasn't even gotten started.
01:55And you're seeing their stock price essentially go up 70% this year.
01:59I think that they're another name that's a premium multiple, but they're surviving the AI tsunami.
02:04So there's a handful of these kind of names out there where the market's comfortable paying up 100 times P.E., 200 times P.E.
02:10Because the ceiling on AI is still being discovered right now.
02:15And the second stage winners are going to be the Amazons, the Googles of this era.
02:20And they're willing to make the bet on a $50 billion, $100 billion, $150 billion company who doesn't really have the balance sheet to back up the valuation.
02:27But they're thinking that the market's going to carry it with a high tide result boats.
02:31Any other under-the-radar names that haven't necessarily seen this huge, impressive performance so far this year but that you expect will?
02:40I believe Snowflake.
02:41I think Snowflake is experiencing a similar narrative change as a Google, for example, as a Tesla, where their whole spiel was a data warehouse company.
02:53And data is going to become a commodity in this AI world.
02:56So they thought, oh, AI is going to disrupt them.
02:59They're one of the priciest IPOs in history, potentially, a couple years ago.
03:03So I think that they got a new CEO.
03:05Frank Slimman went out.
03:06He didn't really believe in the AI vision.
03:08They got an incredible CEO who was on a short list of becoming the open AI CEO when Sam Altman was going through that weird PR stint.
03:18So I think that they got an AI visionary to run the ship, and 40% of the Fortune 2000 data is stored in their ecosystem.
03:26That's so much leverage that they're capitalizing on that by becoming this foundation of data liquidity.
03:33And data liquidity is essentially moving around data in a clean and responsible way.
03:39If you want to make the comparison, Palantir is essentially the librarian.
03:44Snowflake's a library for AI data.
03:47They don't compete with each other.
03:48They kind of need each other in the stack.
03:50And I think Snowflake is one name that's been penalized for years because of that narrative change.
03:56And they've catch a bit this year.
03:57And I believe that this is a name that they run a consumption model.
04:01So when business spending is booming, which I believe it's going to pick back up after this tariff debacle is over with, the paralysis is done in business spending,
04:11I think they're going to be a substantial beneficiary on this business spending that's going to be picking back up to make sure that they are in that AR race and their competitors aren't beating them to it.
