00:00We saw really strong revenue growth from Micron. The fundamentals clearly outperforming. Is that
00:07what we need? We need earnings proof points right now. Hi Caroline. Yes absolutely. I think
00:14investors are being more picky in general. I think as the AI trends continues to accelerate
00:22I think we need solid evidence that it is actually delivering commercial benefits broadening its
00:30application and of course delivering earnings. And I think that that is really the primary thing that
00:36investors are going to focus increasingly in 2026 basically going to be much more selective and also
00:44being cautious on anything that is leverage related. So do you think there's more pain to come for those
00:51like an Oracle that have to spend significant amounts to be able to build up the infrastructure
00:57needs? I think that will be certainly increasing scrutiny because the thing is if you look at
01:04the commercial commitment of Oracle it stretches along decades. And we know that although you kind
01:12of see that the demand is very strong you you just can't actually confidently predict the future
01:21right and also of course is profitability. And I think the key question is it is really the amount
01:28of debt that is fueling this AI infrastructure particularly for Oracle. I think for hyperscalers
01:34or companies that have abundant cash flow a strong balance sheet that would be less of a problem.
01:39But I think a lot of those pain has been released after the share price decline from Oracle. So hopefully
01:45we are setting for a better stage from here. What's been interesting is the desire with which to
01:51sell companies that have significant exposure to say an open AI and there's been this generalization
01:57really out there that you've been buying the Google winners, Alphabet winners instead. Is that trade
02:02still on? Are we seeing actually that that you can have exposure to open AI? Look, Amazon with another
02:07seemingly circular deal where they give equity to open AI so that it can afford its cloud and compute
02:12in the future. Well, I think the thing is the markets for AI is huge, right, is expected to keep
02:21growing, keep accelerating. So they're there that that isn't necessarily just going to be one winner
02:27out there like one software, one model that is going to conquer everything. So there's this competition
02:33between Germany and open AI, which worries investors because Germany seems to be getting a lot of
02:39accolade recently. But, you know, I think the market is just very, very broad. So in general, I think it is is normal for
02:51investors to to get a little bit worried in the near term. But I believe that ultimately there will be multiple winners and
02:59they are likely to be those large in scale and has which is already being on building on very strong existing foundations.
03:09Janet, your view on breadth, because there hasn't been much in 2025 and you can rack up almost like 40 percent of all the gains of certain indices are down to one particular name or a sprinkling of them for the broadening to happen.
03:21Do we have to see valuations fall for some of the previous winners or can they remain elevated and others continue to run up alongside?
03:30I think I think
03:33is the latter case. I do think that investors are willing to pay a higher premium for these strong AI leaders.
03:42It can continue as long as they continue to deliver strong growth. And I think the broadening our story, we have seen that recently. And I think a lot is because of the Fed's upward revision to growth forecast.
03:55So we really need to see the economy continue to stay strong or at least resilient and also having some more rage cuts from here. So I think another case is that we may see broadening out in terms of the AI productivity story.
04:12If that happens, we see more evidence of that then it could it could keep the rally in the small and big caps going.
04:20Yeah. What about U.S. being the only game in town or broadening out more into Asia? We just referenced Samsung. SK Hynix is big winners and have high bandwidth memory.
04:32Yeah, we have a slight overweight position in Asia equities and probably that's based on the A.I. story is although, as you're right, is more diversification away or in addition to that U.S. A.I. story.
04:46I think Asia got some really great and important names in that A.I. ecosystem, which is worth looking. And I think the other thing about diversification is that we are constructive on the A.I. story.
04:57But, you know, as investors, it's good to think about diversification in a portfolio. And I think U.K. actually offers good diversification because the market has very little in tech.
05:09It's more defensive in nature and the valuations remain attractive. So if you think from a total portfolio perspective, having that U.K. exposure actually helped to balance that out, that A.I. exposure.
05:21Janet, how many calls are you getting from clients who want exposure more to the private markets and private assets, the 16 trillion out there, rather than just the public market exposure?
05:32Yeah, that's interesting. So I think currently there are interests, of course. But I think for us, mostly it's still in the public market space. But we're certainly looking more into that space.
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