Ai boom contains ‘Echoes of the dot-com was’, says the strategist

00:00 Speaker a

I was talking about the fatigue of AI will enter here, seeing some weakness in Nvidia. Barclays with an interesting note this morning on AI and how big that industry goes and I think you were in a call listening a little more its uh thesis.

00:09 Brooke Depalma

Yes, I was in a call only listening to them by comparing the AI ​​boom with the bubble of the Puntocom and why it is not necessarily like Dotcom’s bubble.

00:20 Brooke Depalma

First, because the speakers during the Dotcom bubble were the telecommunications companies. They were comparing Capx with sales. They are saying that at this time it has increased by 25%. At that time, it rose 40%.

00:36 Brooke Depalma

They also say that telecommunications depended largely on debt in credit markets. This is not the case with the Hyper Scalers who are at cash. And they are also talking about how Hyper Scalers are a high margin business.

00:52 Brooke Depalma

And that their operational companies are operating expenses, I must say, they are rising, but their income increases at a faster rate. Then, Barclays is saying that they see a strong basis for the issue of AI.

01:03 Brooke Depalma

They do not see a derailment, so to speak, to speak during the next 6 to 18 months. Yes, there are risks. Yes, yes, did they also talk about euphoria in the markets? Euphoria in the stock market is at this time high. We all know.

01:17 Brooke Depalma

But as for the general issue of AI, when it comes to Hyper Scalers, they say it is on a solid base.

01:21 Speaker a

Brent, very fast. Final word for you. Do you buy falls in the names of AI?

01:25 Brent Shooty

Look, I think Barclays probably is not correct. I think there are echoes of the era .com. It does not mean that they are exactly the same.

01:33 Brent Shooty

I think the risk is that people have set him as if Barclays were correct, and that is where he would encourage people to possess things outside of ou. So, it is not concentrated only in the actions of AI because that is where there is a risk that it is not the way in which people imagine at this time, which already has a price in the market, which is at the same levels approximately in many measures as at the end of 1999.

01:50 Brent Shooty

Instead, I would focus on cheaper parts on the market because I think the valuation works in the long term. I think the story is repeated. And I think you will see better days ahead for the average stock in the S&P 500, as well as the small and a half in the USA.

02:04 Brent Shooty

Uh and that is where I would continue to focus on diversified and not concentrated people.

02:08 Speaker a

I feel that hot shot. That is the health I needed this Thursday morning. Thank you very much to my initial doors of the round table, Brent Shooty, Brooke Depalma and Anes Ferrel.