1 00:00:00,240 --> 00:00:02,880 Speaker 1: To Andrew Curtaine Milford Asset Management, Andrew good Evening. 2 00:00:03,720 --> 00:00:05,360 Speaker 2: Ednan Ryan, how are you very well? 3 00:00:05,400 --> 00:00:08,320 Speaker 1: Thank you. We've been watching the tech stocks and we've 4 00:00:08,320 --> 00:00:12,280 Speaker 1: been watching the AI stocks leading this market higher and 5 00:00:12,360 --> 00:00:15,840 Speaker 1: higher over in the US. What's the latest investors, you know, 6 00:00:15,840 --> 00:00:18,320 Speaker 1: what companies have you been looking at? What are investors 7 00:00:18,320 --> 00:00:18,840 Speaker 1: focus on? 8 00:00:20,600 --> 00:00:23,360 Speaker 2: You know, they really continued to rally pretty much each 9 00:00:23,400 --> 00:00:26,360 Speaker 2: month you see them higher. There's been over the last 10 00:00:26,480 --> 00:00:27,960 Speaker 2: a few weeks. There has been a number of key 11 00:00:27,960 --> 00:00:30,640 Speaker 2: pieces a news couple of US result based. You had 12 00:00:30,640 --> 00:00:34,760 Speaker 2: two large companies, one called Oracle that people will be 13 00:00:34,800 --> 00:00:37,760 Speaker 2: familiar with, Larry Allison sort of the key key shareholder 14 00:00:37,800 --> 00:00:41,000 Speaker 2: on that stop that had an incredible result where they 15 00:00:41,080 --> 00:00:44,519 Speaker 2: now it'ced three hundred billion dollars of new contracts for 16 00:00:44,640 --> 00:00:50,040 Speaker 2: AI cloud services. That's just like ridiculously big numbers, which yeah, 17 00:00:50,040 --> 00:00:52,320 Speaker 2: I think the chef has rallied over thirty percent on 18 00:00:52,360 --> 00:00:55,200 Speaker 2: that one day alone, put Oracle into around about the 19 00:00:55,280 --> 00:00:58,520 Speaker 2: top ten largest companies in the US, and Larry Allison 20 00:00:58,600 --> 00:01:01,640 Speaker 2: himself owns about forty five percent of that business. So 21 00:01:01,680 --> 00:01:05,000 Speaker 2: I think very shortly went past Elon Musk as the 22 00:01:05,040 --> 00:01:07,800 Speaker 2: richest man in the world. So yeah, fantastic performance from 23 00:01:07,800 --> 00:01:12,280 Speaker 2: that business. Another company called Broadcom, which which sells chips, 24 00:01:12,319 --> 00:01:16,360 Speaker 2: which largely compete with Navidia, has also had a strong 25 00:01:16,440 --> 00:01:20,119 Speaker 2: results and upgraded numbers, and amongst most other pieces of news, 26 00:01:20,360 --> 00:01:22,720 Speaker 2: Google sort of getting it's kind of in its mojo 27 00:01:22,800 --> 00:01:26,119 Speaker 2: going with Gemini, which is its AI product, and that's 28 00:01:26,120 --> 00:01:28,200 Speaker 2: getting a lot of tensions. So share price has been 29 00:01:28,200 --> 00:01:31,960 Speaker 2: doing well there. And then just two days ago Navidio 30 00:01:32,280 --> 00:01:34,800 Speaker 2: made an announcement that they're going to invest one hundred 31 00:01:34,840 --> 00:01:38,280 Speaker 2: billion dollars in open Ai, which is the company that 32 00:01:38,319 --> 00:01:42,360 Speaker 2: owns chat GPT, and that got the market pretty excited, 33 00:01:42,440 --> 00:01:44,560 Speaker 2: and Navidia shares are up three or four percent on 34 00:01:44,640 --> 00:01:45,520 Speaker 2: That is. 35 00:01:45,480 --> 00:01:50,600 Speaker 1: The worry that you've got huge investments some of these companies, 36 00:01:50,640 --> 00:01:52,320 Speaker 1: and then one will invest in the other, the other 37 00:01:52,360 --> 00:01:55,520 Speaker 1: will invest back in that one, and it could be 38 00:01:55,720 --> 00:01:58,400 Speaker 1: creating some kind of bubble. I mean, even just the 39 00:01:58,520 --> 00:02:03,760 Speaker 1: level of which the markets rising, it doesn't indicate bubble territory. 40 00:02:05,080 --> 00:02:09,360 Speaker 2: Yeah, there's certainly been a growing view from some investors 41 00:02:09,400 --> 00:02:11,880 Speaker 2: that were starting to look bubble like, and they make 42 00:02:11,919 --> 00:02:14,880 Speaker 2: comparisons to the dot com or the Internet bubble era 43 00:02:14,960 --> 00:02:18,359 Speaker 2: that happened in the late nineties early two thousands. One 44 00:02:18,400 --> 00:02:21,240 Speaker 2: piece that Navidia invests and I mentioned which she used 45 00:02:21,280 --> 00:02:24,359 Speaker 2: to correctly point out on the secularity there. It is 46 00:02:24,400 --> 00:02:26,560 Speaker 2: a little bit circular. And what they're doing is they're 47 00:02:26,560 --> 00:02:30,200 Speaker 2: investing one hundred billion dollars in open AI, who was 48 00:02:30,240 --> 00:02:32,560 Speaker 2: then taking that one hundred billion dollars and using it 49 00:02:32,600 --> 00:02:35,600 Speaker 2: to buy, amongst other things, chips from Navidia. So it's 50 00:02:35,639 --> 00:02:38,080 Speaker 2: kind of like the given the company to buy their 51 00:02:38,080 --> 00:02:41,440 Speaker 2: own products. So a bit circular, and it causes concern. 52 00:02:41,600 --> 00:02:44,360 Speaker 2: And there was elements of that or that was happening 53 00:02:44,400 --> 00:02:47,200 Speaker 2: in various ways in the Internet bubble. And then of 54 00:02:47,200 --> 00:02:50,480 Speaker 2: course the evaluations that some of these stocks are getting higher. 55 00:02:50,520 --> 00:02:52,639 Speaker 2: So you're certainly seeing a growing yeah, of course, of 56 00:02:52,680 --> 00:02:55,720 Speaker 2: people getting a little bit concerned and some people you 57 00:02:55,840 --> 00:02:57,519 Speaker 2: see some investors that have taken a little bit of 58 00:02:57,560 --> 00:02:58,720 Speaker 2: risk off some of their stocks. 59 00:02:59,400 --> 00:03:01,640 Speaker 1: It's interesting because when you look at that from a 60 00:03:01,800 --> 00:03:04,800 Speaker 1: practical personal perspective, you know, I look at it and 61 00:03:04,800 --> 00:03:07,200 Speaker 1: I think, well, I can see why it's going up, 62 00:03:07,240 --> 00:03:09,760 Speaker 1: because if I look at my use of AI just 63 00:03:09,960 --> 00:03:12,400 Speaker 1: in the past six months or they alone a year 64 00:03:12,840 --> 00:03:15,600 Speaker 1: is also going up. So I'm like, maybe they're you know, 65 00:03:16,080 --> 00:03:16,959 Speaker 1: it's justified. 66 00:03:18,440 --> 00:03:21,239 Speaker 2: Yeah, and that's that's certainly what all the big companies 67 00:03:21,240 --> 00:03:25,320 Speaker 2: in the world there, the Microsoft's and Google's amazons, and 68 00:03:25,400 --> 00:03:29,000 Speaker 2: that's what they believe. They think the AI use case 69 00:03:29,160 --> 00:03:31,840 Speaker 2: is there. They think it's getting the use cases are 70 00:03:31,840 --> 00:03:33,840 Speaker 2: getting better and better, and you certainly are seeing that. 71 00:03:33,919 --> 00:03:36,440 Speaker 2: I mean, chichibt is so much better now than it 72 00:03:36,600 --> 00:03:39,040 Speaker 2: was two years ago when it came onto the scene, 73 00:03:39,440 --> 00:03:43,200 Speaker 2: and so they convinced that AI is the next technological 74 00:03:43,360 --> 00:03:47,480 Speaker 2: jug Therefore they're willing to invest hundreds of billions of dollars. 75 00:03:47,520 --> 00:03:50,720 Speaker 2: So currently there's this estimated about six hundred billion per 76 00:03:50,760 --> 00:03:54,280 Speaker 2: anim has been invested into AI data centers. That number 77 00:03:54,320 --> 00:03:58,160 Speaker 2: is expected to grow potentially to one or just over 78 00:03:58,200 --> 00:04:00,920 Speaker 2: one trillion dollars over the next couple years. And even 79 00:04:01,560 --> 00:04:04,920 Speaker 2: a big sit oft AO ball At Jensen Huang, who's 80 00:04:04,960 --> 00:04:07,960 Speaker 2: the CEO of Navidia, is putting out numbers saying there 81 00:04:08,040 --> 00:04:10,280 Speaker 2: might be three trillion dollars of ann you'll spend on 82 00:04:10,800 --> 00:04:14,200 Speaker 2: AI data centers, which is phenomenal. You're talking about three 83 00:04:14,280 --> 00:04:16,480 Speaker 2: trilling You're talking something like three to four percent of 84 00:04:16,520 --> 00:04:19,760 Speaker 2: global GDP. So well, you've got these companies who believe 85 00:04:19,800 --> 00:04:22,040 Speaker 2: in AI and believe in the product, then they can 86 00:04:22,080 --> 00:04:24,520 Speaker 2: keep putting the money, and the profitable companies, largest in 87 00:04:24,560 --> 00:04:27,040 Speaker 2: the world, they can keep fueling this kind of spending. 88 00:04:26,760 --> 00:04:30,200 Speaker 1: Spring fascinating stuff. Andrew, appreciate your time tonight, Andrew Kurchain, 89 00:04:30,279 --> 00:04:31,440 Speaker 1: Milford Asset Management. 90 00:04:32,120 --> 00:04:35,280 Speaker 2: For more from Heather Duplessy Allen Drive, listen live to 91 00:04:35,400 --> 00:04:38,440 Speaker 2: news talks. It'd be from four pm weekdays, or follow 92 00:04:38,480 --> 00:04:40,240 Speaker 2: the podcast on iHeartRadio.