00:00The reality is some of these knee-jerk reactions, I think, could be misleading relative to the
00:05fundamentals. Because what investors are looking at here is, what does demand look like for the
00:11AI revolution? And look, Intel has become a huge barometer. And you combine what we saw from Intel
00:17with the hyperscalers, that just gives you more confidence to what we're going to see over the
00:22next week relative to CapEx, enterprise demand. I think that's why it's very easy for investors to
00:28get caught up sometimes in what the stocks do a day after. But for Intel, I mean, they've almost
00:33become the comeback kid. They have. Yeah, they definitely have. With a big helping hand from
00:38the U.S. government, of course. And NVIDIA, yeah. And NVIDIA. Okay, so let's talk about the hyperscaler
00:43earnings that are coming up next week. Alphabet, the knee-jerk reaction there was to sell it off
00:47yesterday, down almost 7%. Today, it's making a little bit of a comeback, stabilizing two-thirds
00:53of 1%. We've got Meta, Microsoft, Amazon, all reporting next week. Are we going to see a similar
01:00kind of outcome where they're going to increase their CapEx and the return on investment through
01:07cloud sales, for instance, is going to show that they're getting some payoff, but investors' bar
01:14is so high right now that they're not going to be rewarded for it?
01:17And I think the alphabet reaction, you know, I think that someone would say maybe head-scratching
01:23because if you saw the cloud growth, you look what they're doing across the business. And then,
01:27of course, increasing CapEx. But as we've talked about, this is an arm's race. It's third inning
01:32in the AI revolution. Microsoft, Amazon, Meta, no one's going to slow CapEx. If you slow it down,
01:41you get ultimately, you know, you're out of the line in terms of when it comes to capacity.
01:45I think the most important thing relative to tech earnings, to the market, to these stocks
01:51is demand accelerating our enterprises toward what ultimately is going to be monetization
01:58and use cases. And in terms of the reactions, look, I think we've seen, you know, I think
02:03investors are definitely fickle and worrying about, we'll say, maybe patients wearing thin.
02:07But guess what? Let's say Alphabet said, we're cutting CapEx.
02:11Exactly. The market would freak out. So that's why it's one where these companies are doing
02:17everything, but they're not just spending like 1980s rock stars for no reason. They're spending
02:22because their customers are moving on the hyperscalers on the cloud with AI. That's why
02:29they're doing it. It's sort of like you're damned if you do and you're damned if you don't,
02:32right? Because if you're not spending and keeping pace with the other big hyperscalers, well,
02:36then what are you doing? But if you're, if you're spending a lot, they're still going,
02:40what are you doing?
02:40But it's the, you're building out the Vegas Strip in 1955.
02:45Great analogy.
02:46So, so the point is you get one spot on the Strip. If you pull back, guess what? You're
02:53two miles away, you're in Reno.
02:54Right.
02:55And, and, and bottom line is that's how these companies are thinking.
02:58Okay. So they want to make sure they have a prime spot on the Strip. And that means they
03:03need to spend a lot of money. They also need to raise a lot of money. They've been doing
03:06that in the bond market. Are more companies going to do what Alphabet did and tap the
03:10equity market as well?
03:12I think it's, it's going to be a tidal wave. Now, in terms of on, I think it's also, it's
03:17going to happen over the next six, 12, 18 months, because the reality is if they don't do it,
03:21despite whatever the stocks do, they know they're out of the game. Now investors, how are they
03:27going to react to that? I would argue, see, if you look at Meta, Meta's last quarter was
03:33basically increased CapEx, dog ate the homework. They didn't show it. Alphabet, they are showing
03:40it. Microsoft, penalty box, prove me moving from Nadella. Each one's almost become idiosyncratic
03:46relative to how they're treated. But the reality is investors are going from CapEx to monetization.
03:52That's the phase we're in, but it's still early in terms of, as it's all playing out. And
03:57for the first time in 30 years, the U S is ahead of China when it comes to tech.
04:02Um, Apple's a different animal from the other companies we were just talking about. And
04:05they're every day. I feel like they're saying, we're going to revamp another product in our
04:10lineup again, geared towards AI. So what can they possibly say that's new when they come
04:15out with earnings next week?
04:16Look for Apple, they finally now have an AI strategy. It's not just talk. And we talk about
04:21when we started WWDC, it's not anthropic. It's not open AI. They're not, they don't need to
04:26be that because they have the install base of 2.5 billion iOS devices, 1.5 billion iPhones
04:32for them. Okay. It's really about giving investors update on the deployment of the AI strategy and
04:41then giving some sort of sense in terms of what this iPhone 17, it has been a surprise
04:47upgrade cycle. And I think that's something you saw it even on the AT&T numbers. And it's
04:52very important for this broader market. The stock, what's happening to the stock, investors
04:57are realizing Apple is basically, they're going to be the toll collector on the consumer AI
05:03highway, no matter which way.
05:06But do we need a foldable Apple phone? That's my question, Dan.
05:09And again, Keen's talked about that. And I think, you know, I know he's waiting for it,
05:13but I think it's going to come by next year.
05:14It'll fit in their pocket better. It's not going to fall out of their pocket that way.
05:17Okay.
05:17It'll be bulkier, but it won't fall out.
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