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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: A special edition of Single Best Idea. It has been

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Speaker 2: life changing. There are two groups of people, those that

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Speaker 2: are in technology and those that are not. And maybe

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Speaker 2: you're in technology through individual stock ownership. Maybe you're looking

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Speaker 2: at a Bentley this weekend off your Nvidia purchases, or

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Speaker 2: maybe not. Maybe in your four oh one K you've

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Speaker 2: got a tech overweight or a tech nonweight. But in

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Speaker 2: America there's exactly two groups of people. Long ago, in

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Speaker 2: far away, there was a guy in a normal business

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Speaker 2: suit at Webbush. Long ago in far away, there was

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Speaker 2: a guy up in Minnesota with Piper Jeffrey holding court

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Speaker 2: on technology. Some of us took notes, and some of

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Speaker 2: us got very lucky by believing in what Dan Eyes

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Speaker 2: and Gene Munster said. This is the highlight of the

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Speaker 2: summer on technology. Bloomberg Daybreak are Nathan Hager with Ives

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Speaker 2: and Munster.

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Speaker 1: Thank you so much for joining us for this special

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Speaker 1: edition of Bloomberg Daybreak. US markets are closed for the

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Speaker 1: Independence Day holiday. I'm Nathan Hager coming up this hour.

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Speaker 1: They correctly predicted the artificial intelligence boom that led to

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Speaker 1: record highs for several tech companies this year. Now they're

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Speaker 1: back to assess whether this high tech bull has more

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Speaker 1: room to run or whether it's headed into bubble territory.

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Speaker 1: Joining us for the entire hour, our Gene Munster, managing

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Speaker 1: partner at Deepwater Asset Management, and web Bush Security, senior

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Speaker 1: equity research Channalyist Dan ives gentlemen, thanks once again for

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Speaker 1: joining us for this special roundtable discussion on all things tech.

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Speaker 1: And Dan, I want to start with you because you

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Speaker 1: really have been out front on the bull case for

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Speaker 1: AI over the last well really a couple of years now.

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Speaker 1: So here's what you had to tell us around this

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Speaker 1: time last fourth of July.

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Speaker 3: My opinion, it's a fourth Industrial Revolution that's playing out

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Speaker 3: in front of our eyes. We believe this is the

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Speaker 3: start of a new tech bull market, and which is

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Speaker 3: why we think second half of the year tech could

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Speaker 3: be up fifteen, potentially twenty percent in a much broader

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Speaker 3: rally because of what's happening from a growth perspective. I

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Speaker 3: think it's ais tip of the iceberg.

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Speaker 1: And since then, the Magnificent seven stocks tracked by Bloomberg

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Speaker 1: are up fifty five zero percent on the total return.

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Speaker 1: Where Dan can these megacap tech names keep up that

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Speaker 1: kind of momentum.

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Speaker 3: Look, it's nine pm. Still in this party, this AI

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Speaker 3: party that I believe goes to four am. I mean,

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Speaker 3: this is the start of a two year tech cycle

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Speaker 3: because it's something where it's the multiplier for every dollar

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Speaker 3: spent on nvidio chip, there's an eight to ten multiplier

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Speaker 3: across software, across infrastructure, across the rest of that. That's

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Speaker 3: why this is a nineteen ninety five movement, not a

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Speaker 3: ninety nine nine movement. Get out the popcorn, we shoe

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Speaker 3: detect bile market continues.

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Speaker 1: So let's bring you in on this, Gene. Here's what

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Speaker 1: you had to tell us about big text potential this

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Speaker 1: time last year.

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Speaker 4: There's gonna be some ebbs and flows in terms of

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Speaker 4: the stocks in the near term, but I think that

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Speaker 4: it will ultimately meet, exceed, will comfortably exceed all of

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Speaker 4: the hype. And the hype is just intense. I mean,

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Speaker 4: this universal optimism around it seems hard to believe, but

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Speaker 4: I think it is. There is substance behind it.

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Speaker 1: One year later, Gene is the substance still backing up

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Speaker 1: the hype.

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Speaker 4: It is, and that's the part that Dan and I

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Speaker 4: keep a close eye on. As every quarter and in

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Speaker 4: the middle the quarters, tracking how these companies are doing.

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Speaker 4: Is it ultimately exceeding meeting disappointing to what those bars

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Speaker 4: are and it's so far it's just been exceeding really

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Speaker 4: across the board in vidious numbers. Of course, is the

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Speaker 4: bell weather. Dan talks about the chips piece, that being

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Speaker 4: the front end of it and that multiplier effect, But

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Speaker 4: that's where I'm focused heavily on, is just what's going

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Speaker 4: on the hardware side. Micron had exceeded estimates guided inline

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Speaker 4: for the for the September core for their August quarter,

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Speaker 4: which in AI world that may be viewed as a

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Speaker 4: slight disappointment, but it did include an acceleration in revenue growth,

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Speaker 4: so it's going from eighty two to ninety percent. So, Nathan,

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Speaker 4: this is all intact, and my view that the substance

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Speaker 4: will exceed the hype continues to be confirmed as we progress.

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Speaker 1: Well, let's talk a little bit more about in video

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Speaker 1: because obviously there's been so much attention on the AI chip. Darling, Dan,

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Speaker 1: You've called Jensen Wong the CEO, the godfather of AI.

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Speaker 1: But godfathers often have targets on their backs. I mean,

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Speaker 1: how big a target is in video right now. When

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Speaker 1: it comes to the overall chip space.

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Speaker 3: Look, they're a target, but it's their world and everyone

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Speaker 3: else's paying rent In terms of where we are, I mean,

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Speaker 3: they're chips, they're GPUs and we've seen this across the

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Speaker 3: you know, across the board in our trips to Asia.

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Speaker 3: It's the new oil, the new gold, and at the

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Speaker 3: top of the mountain it's the godfather of AI. Jensen

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Speaker 3: and Nvidia. In that mount rushmore of AI along with

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Speaker 3: the Della and others that want to join. But this

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Speaker 3: is they're miles ahead of the competition. It'll ebb and

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Speaker 3: flow a year from now. I think we're looking at

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Speaker 3: three four trillion dollar markaps Apple, Microsoft and Nvidia, And

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Speaker 3: as Jeans talked about throughout the year, it's far through

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Speaker 3: the trees. You don't get too caught up with sometimes

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Speaker 3: the gyrations we tweet quarter quarter it's where this is

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Speaker 3: all going.

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Speaker 1: Well, we have seen gyrations just in recent weeks since

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Speaker 1: the ten for one stock split for in Vidia gene.

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Speaker 1: Where do you see in Nvidia going at this point?

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Speaker 4: I mean, that's exactly it. This is just gyrations and

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Speaker 4: it's I believe it's going higher. I think it could

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Speaker 4: go materially higher. And it comes to a basic question

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Speaker 4: that investors have to ask themselves, and it's do you

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Speaker 4: believe if you believe that we're in currently a generative

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Speaker 4: AI inspired world it hasn't really taken impact on most

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Speaker 4: of our lives, but a generative AI inspired world. And

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Speaker 4: if you believe that eventually that leads to artificial general intelligence,

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Speaker 4: which is a light year ahead of genitive AI. And

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Speaker 4: if you believe that superintelligence is somewhere on the horizon

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Speaker 4: five to ten twenty years on the horizon, if you

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Speaker 4: believe that that is the future, which I hold those

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Speaker 4: then and video is going a lot higher in video

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Speaker 4: if AI works, in Vidia has to work.

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Speaker 1: Speaking with Gene Munster, the managing partner at Deepwater Asset Management,

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Speaker 1: and Dan Ives, senior equity research analyst at web Bust Securities,

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Speaker 1: joining us in studio, Gene is joining us via zoom, Dan,

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Speaker 1: where do you see the trajectory for in video? I mean,

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Speaker 1: you've talked a lot about how the run seems like

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Speaker 1: it has legs. What turns in video from the kind

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Speaker 1: of growth that we've seen over the last several months

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Speaker 1: to something of more stability.

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Speaker 3: I mean, the use cases are just starting, so when

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Speaker 3: you look a numbers, the street is still behind where

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Speaker 3: the demand and where numbers actually go. So we could

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Speaker 3: go through intra court people saying in type and stock

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Speaker 3: sell off, but it all comes down to demand, and

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Speaker 3: we are still in from baseball perspective, we're in the

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Speaker 3: top of the second, bottom of the first in terms

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Speaker 3: of where this is all heading, and they're the only

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Speaker 3: show in town in terms of those chips. That's why

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Speaker 3: I believe this is one where they continue to defy

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Speaker 3: show numbers that I think are jaw droppers, and now

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Speaker 3: the second, third, fourth derivatives hit across the rest of tech.

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Speaker 1: Well, when it comes to that demand piece, Gene, I mean,

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Speaker 1: can in Vidia meet the kind of demand that we've

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Speaker 1: seen from a lot of its enterprise customers. Can the

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Speaker 1: suppliers that in Vidia relies on meet that kind of demand?

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Speaker 4: The best thing, the answer to simple answer is no,

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Speaker 4: because everything that Dan's talking about that this early innings

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Speaker 4: and we're just starting to build this infrastructure. Despite the

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Speaker 4: breathtaking growth that Nvidia has had, we're just still early

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Speaker 4: and we're going to see a whole new class. It

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Speaker 4: has been the hyperscalers. We're going to see a whole

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Speaker 4: new class of enterprisers. There's be industrial AI, there'll be

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Speaker 4: sovereign AI from countries, and so they will start to

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Speaker 4: be buying these chips, and ultimately I think it will

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Speaker 4: be very difficult for TSM to keep up with in

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Speaker 4: Vidia's demand. It's a great thing for investors because of course,

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Speaker 4: when they have good numbers and they say we can't

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Speaker 4: keep up, that allows investors to kind of continue to

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Speaker 4: maintain a lot of their optimism. And so I think

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Speaker 4: it's actually okay that it'll be fine for the stocks

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Speaker 4: that in Vidia can't keep up with this demand. And

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Speaker 4: I had a question for Dan, and you know, when

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Speaker 4: I think about this kind of evolution and what's going

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Speaker 4: on now is generative AI, and then how would you

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Speaker 4: I describe there's a light year gap between generative AI

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Speaker 4: and general intelligence because this is where you and I

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Speaker 4: we're focused. The reason why we're not worried about quarters

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Speaker 4: is worth thinking two three years down the road. And

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Speaker 4: how do you think about that piece of it, the

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Speaker 4: general intelligence piece of it, relative or just in terms

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Speaker 4: of the the applications that could present themselves and the

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Speaker 4: opportunity for wealth creation around.

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Speaker 3: Yeah, it's a great question. And look, Gene, I think

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Speaker 3: from everything, all the work we've done around the world,

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Speaker 3: we think about sixty percent of data that's never been

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Speaker 3: able to be cracked or used by enterprises and ultimately

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Speaker 3: by consumers is now going to get unlocked. And you're

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Speaker 3: going to have on the consumer side hundreds of apps

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Speaker 3: while them through Apple. That is how most consumers are

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Speaker 3: going to interact with AI in a way that they

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Speaker 3: couldn't even imagine today. Enterprise is the same thing. As

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Speaker 3: much as it's scary sci fi twenty first century, I

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Speaker 3: think the reality is is that enterprises are finding massive

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Speaker 3: use cases ROI, and that's why we believe there's a

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Speaker 3: lot of these companies ten hours in earnings could be

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Speaker 3: fourteen to fifteen.

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Speaker 1: In terms of the advances that we could see. It

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Speaker 1: raises a lot of questions when you talk about a

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Speaker 1: leap from the kind of large language models that we're

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Speaker 1: seeing now to this general intelligence. It raises the questions

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Speaker 1: about whether artificial intelligence is advancing too fast for companies

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Speaker 1: and people to keep up with the moral questions as well.

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Speaker 1: I wonder how Gene, you think about some of those

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Speaker 1: questions As a lot of these big tech companies do

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Speaker 1: try to get to some of these massive leaps that

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Speaker 1: used to be science fiction, but do seem like they're

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Speaker 1: becoming that much closer to science fact.

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Speaker 4: Yeah, the numbers are supporting it, just in terms of

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Speaker 4: the breath taking expansion and intelligence of these models. Just

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Speaker 4: to put some perspective around it, open AIGPT three had

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Speaker 4: about one hundred and twenty billion parameters. They haven't given

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Speaker 4: the numbers for four to oh, but it's estimated to

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Speaker 4: be about a trillion. And that's kind of a simple

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Speaker 4: way to think about how smart the model is is

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Speaker 4: to look at the number of parameters. Think of this

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Speaker 4: as it's over a period of a year, it's getting

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Speaker 4: going almost a ten x improvement and intelligence. So this

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Speaker 4: these are kind of growth curves that are that just

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Speaker 4: we haven't seen makes the Internet growth look JV and

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Speaker 4: I think when it comes to the pauses, Dan and

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Speaker 4: I have talked about the benefits the benefits for companies

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Speaker 4: to continue to build into this, and I think it's

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Speaker 4: I appreciate your point about how can this be? You know,

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Speaker 4: what are the negative sides? And I would just my

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Speaker 4: view is this you can debate a lot of angles

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Speaker 4: around how can this be negative or positive? I think

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Speaker 4: the one piece that cannot be debated is it's going

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Speaker 4: to get harder for people to distinguish what is truth

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Speaker 4: and fiction and all the ramifications around that. I think

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Speaker 4: you can You're going to see more tribalism. I think

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Speaker 4: people just because you're going to get progressively easier to

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Speaker 4: get fed what you want to hear. And so I

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Speaker 4: think that that sides the most actually concerning part of

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Speaker 4: me and just think about like global stability is just

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Speaker 4: how AI is going to be used to influence how

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Speaker 4: people think. I'm not worried about robots shooting people up

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Speaker 4: or anything like that. I think it's this is just

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Speaker 4: about how AI influences how we think.

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Speaker 2: Now.

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Speaker 1: I want to get deeper into those questions as we

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Speaker 1: get deeper into the program. But Dan, just to close

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Speaker 1: out this segment, I mean, we've seen these massive multiples

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Speaker 1: for in Nvidia and other companies like it in terms

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Speaker 1: of you know, the levels the valuations that they're trading at.

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Speaker 1: Is that a new normal? These kinds of massive priced

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Speaker 1: earnings ratios that we're seeing for companies like in Vidio.

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Speaker 3: I mean, that's been what we've talked about it's a

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Speaker 3: new normal. I think how many have missed this. They

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Speaker 3: go back to their historical DCF spreadsheets while they're in

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Speaker 3: their hibernation monas bears it's a new error.

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Speaker 1: And we'll continue this roundtable discussion with Dan Ives of

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Speaker 1: Webbush and Gene Munster of Deepwater Asset. Is this special

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Speaker 1: fourth of July edition of Bloomberg Daybreak continues. It's twenty

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Speaker 1: minutes past the hour. I'm Nathan, and this is Bloomberg.

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Speaker 1: Welcome back to this special edition of Bloomberg Daybreak. I'm

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Speaker 1: Nathan Hager. US markets are closed for the fourth of July,

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Speaker 1: but we're breaking out the fireworks for a high tech

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Speaker 1: power hour. We're back with Dan Ives, senior equity research

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Speaker 1: analystic web Bush Securities, and deep Water Asset Management's managing

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Speaker 1: partner Gene Munster. And guys. We've been talking a lot

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Speaker 1: about Nvidia for obvious reasons. I want to get into

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Speaker 1: some other names, though, with exposure to the AI space,

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Speaker 1: there has been a lot of talk about Tesla as

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Speaker 1: a potential AI play. Dan, I know you've been bullish

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Speaker 1: on this stock for quite some time. How important is

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Speaker 1: artificial intelligence going to be? Though? When it comes to

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Speaker 1: Tesla's longer term growth.

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Speaker 3: It's the wingepin to the bull case. Because I've never

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Speaker 3: viewed Tesla as an auto company, as a car company.

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Speaker 3: I viewed a disruptive tech and when we I think

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Speaker 3: about autonomous and FSD, even when some of the things

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Speaker 3: that are happening in China the next five, eight, ten years,

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Speaker 3: the biggest bowl case for Tesla is I could argue

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Speaker 3: it's probably the most undervalued AI name in the market

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Speaker 3: relative to use cases. That's what we're focused on. It

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Speaker 3: it's very easy to focus on, Okay, they missed deliveries

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Speaker 3: by x amount, that's far as through the trees. We

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Speaker 3: were focused on AI, FSD, autonomous and I know gene

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Speaker 3: Is does a ton of work here, a ton of

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Speaker 3: great work in terms of autonomous FSD, and I think

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Speaker 3: this to me is a new it's really going to

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Speaker 3: be in transformation that we see in the auto industry.

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Speaker 1: Well, gene Is that central to how you see Tesla

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Speaker 1: right now. I mean, there have been a lot of

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Speaker 1: promises over the years from Elon Musk about how the

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Speaker 1: data that Tesla's been able to collect from drivers over

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Speaker 1: the years is going to feed into artificial intelligence potentially.

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Speaker 1: Do you see that paying off anytime soon.

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Speaker 2: I do.

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Speaker 4: I think it's going to pay off faster than what

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Speaker 4: people expect. I think we're going to have a GPT

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Speaker 4: moment when it comes to autonomy and you look at

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Speaker 4: the broader auto space. This has kind of been a

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Speaker 4: surprising year where there's been more investment. Late last year

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Speaker 4: we saw companies pairing back, some of the big auto

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Speaker 4: paying back in their investment in autonomy. We've seen more

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Speaker 4: increases this year from some of the traditional ones. But

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Speaker 4: that said, Tesla still is far and above making the

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Speaker 4: most investments in this and really, as Dan mentioned, this

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Speaker 4: is really the central opportunity to invest in Teslas around

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Speaker 4: what they're going to do with autonomy and what I

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Speaker 4: think is beyond So Nathan, I think it's going to

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Speaker 4: come earlier than what we think. My prediction is that

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Speaker 4: if you're probably seven eight years old today, you're never

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Speaker 4: going to have the need to drive a car, So

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Speaker 4: I think within the next five years. I think it

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Speaker 4: could be as early as two or three years. The

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Speaker 4: legislation piece is going to be the big one holding

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Speaker 4: this up, and then one other piece to the Tesla

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Speaker 4: AI story. We're gonna hear more about it obviously on

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Speaker 4: August eighth when they show their three new vehicles, and

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Speaker 4: if us he's going to be a big part of

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Speaker 4: that lineup. But one other piece is related to Optimists,

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Speaker 4: and it's almost like, I don't know how you feel

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Speaker 4: about this, Dan, about when you talk about Optimists with investors,

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Speaker 4: it is if there's a sense like you almost lose

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Speaker 4: credibility to say that it has real potential because it

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Speaker 4: just seems so far far down the road. If something

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Speaker 4: good happens in Optimists, the stock doesn't move. But I

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Speaker 4: think that's another big piece. I love your take, Dan,

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Speaker 4: just on like, is Optimists something that an investors should

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Speaker 4: care about today?

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Speaker 3: Yeah, exactly Jane's point. If I bring that up in

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Speaker 3: an investor meeting, it's like the laughter just starts, Well,

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Speaker 3: how could you even talk about that?

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Speaker 2: Yeah?

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Speaker 1: I mean because a lot of the thing is that,

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Speaker 1: you know, there have been a lot of promises over

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Speaker 1: the years for Elon Musk that autonomous is going to

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Speaker 1: pay off, There's going to be a robo taxi. Obviously

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Speaker 1: there's the August eighth unveil that we're expecting, but there's

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Speaker 1: been a lot of expectation over the years and not

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Speaker 1: as much payoff arguably that many investors might be looking for.

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Speaker 3: But I would I'd agree, but also disagree, because the

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Speaker 3: point is there was a point where if you said

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Speaker 3: Tesla's going to be producing a million units per year exactly,

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Speaker 3: and Gene remembers, they'd be like, wow, you must drank

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Speaker 3: a lot of rose or had a good Friday night.

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Speaker 3: And now we're coast to two million, and look at

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Speaker 3: profitability when in today how much free cash are the

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Speaker 3: general relative to when they were losing money?

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Speaker 1: Now you could argue that maybe I'm looking at the

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Speaker 1: trees for the forest here. But you know, there has

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Speaker 1: been some reporting from Bloomberg Green in recent weeks that

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Speaker 1: Tesla looks like it's on track to lose you know

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Speaker 1: something that's been a bragging point for several years, it's

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Speaker 1: electric vehicle market majority in the US. Gene just to

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Speaker 1: that point about Tesla as its base business of electric

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Speaker 1: vehicle manufacture, how much is it at risk of letting

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Speaker 1: the competition eat into its market share?

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Speaker 4: I think competitions in a much worse spot than people

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Speaker 4: understand right now. And I mentioned some of the step

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Speaker 4: forwards that some of these traditional autels have made around

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Speaker 4: FSD in the past six months. But if you look

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Speaker 4: at collectively what they've done over the past year, absent

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Speaker 4: what Volkswagen's recent investment in Rivian, they've taken five steps back.

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Speaker 4: They want to protect, largely protect their gas business, and

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Speaker 4: making an electric car is different than making a gas car.

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Speaker 4: This is the difference between making a lawnmower and a supercomputer.

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Speaker 4: And I think that what you will see is, even

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Speaker 4: though there's been some improvements in market share here and there,

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Speaker 4: their ability to scale at a profitable rate is going

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Speaker 4: to be challenging, and ultimately, I think it's a catch

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Speaker 4: twenty two. I think Tesla is going to end up

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Speaker 4: with twenty twenty five percent market share of cars in

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Speaker 4: the US. It's down from where it's at today, but

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Speaker 4: that is unprecedented kind of market share. One in four

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Speaker 4: cars to be Tesla. But I think the reason why

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Speaker 4: is it will be the best car for the best price,

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Speaker 4: given the features, and I don't think other car companies

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Speaker 4: are going to be able to largely keep up.

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Speaker 1: You're talking about total market share, not just evis.

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Speaker 4: Total market share correct. I think that twenty twenty five

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Speaker 4: percent is I'm talking ten years down the road here,

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Speaker 4: but I think that that is something again because they

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Speaker 4: can scale at a profit way. The consumer brand matters

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Speaker 4: and cars a lot, but ultimately they want the best value.

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Speaker 1: Speaking with Genemunster of deep Water Asset Management and Dan

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Speaker 1: Ives of web Bush Securities, and just to wrap things

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Speaker 1: up a little bit on Tesla, Dan, do you feel

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Speaker 1: like the company is back on track with Elon Musk

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Speaker 1: after all the rigmarole around x formerly Twitter, the pay package,

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Speaker 1: the reincorporation, all those questions that when Elon Musk's way,

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Speaker 1: is Elon Musk still the guy for this company?

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Speaker 3: I mean, look, Tesla's must Musk is Tesla. So that's

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Speaker 3: why everything that in terms of that twilight zoning that

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Speaker 3: we saw in Delaware with the com package, even though

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Speaker 3: shareholders approved it. The point is that we're not talking

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Speaker 3: about Tesla being a trillion two trillion dollar markap without Musk.

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Speaker 3: I mean, you're talking about what i'd argue Meyer and

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Speaker 3: day Albert Einstein of course has flaws, has issues. We

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Speaker 3: all know it in terms of what comes with Musk.

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Speaker 3: But when you look at autonomous, you look at when

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Speaker 3: you actually go through the factories, when you go through Austin,

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Speaker 3: you go through Freemont. You're in Nevaden, you see the

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Speaker 3: actual battery factor. You go to China, you have a

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Speaker 3: different perspective what they've been able to do, and then

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Speaker 3: you look at all these other EV players that have fallen.

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Speaker 3: It's a graveyard. Because they talk a game, big game,

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Speaker 3: but as Gene said perfectly, the reality is so much

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Speaker 3: more difficult. And I think even in Detroit they figured

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Speaker 3: out with Marry and what Farley's seen as well, how

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Speaker 3: hard is to produce evs profitably.

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Speaker 1: I want to shift to another company that both of

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Speaker 1: you follow very closely, that is Apple, and just to

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Speaker 1: stick with the artificial intelligence theme as well, we've got

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Speaker 1: Apple Intelligence rolled out at the latest Worldwide Developers Conference. Gene,

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Speaker 1: I know you follow this company very closely. Is Apple

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Speaker 1: back on track when it comes to AI?

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Speaker 4: They are, And this is just going to be the

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Speaker 4: sleeper AI story of the next three to five years.

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Speaker 4: And the AI piece isn't going to start impacting, probably

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Speaker 4: start until the December quarter. The streets having some nice improvements,

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Speaker 4: going from three four or five percent year VIA revenue

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Speaker 4: growth in the next few quarters seven percent next year. I

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Speaker 4: think that number is going to be closer to ten

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Speaker 4: percent plus revenue growth for twenty twenty for calendar twenty five,

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Speaker 4: So I think that effectively. And Dan, I've seen your

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Speaker 4: work on this. I think you've been just on just

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Speaker 4: as this is the best consumer facing AI company. I

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Speaker 4: think that's the language that you've used. I agree with that.

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Speaker 4: I think that when you think about AI, a lot

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Speaker 4: of the attention goes to Nvidio kind of on the

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Speaker 4: build side. When it comes to consumer AI, Apple is

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Speaker 4: best positioned, I think, to bring hardware, software services. It's

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Speaker 4: their taglines. But it's true too, nobody brings it better

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Speaker 4: together better. What that means is the average person who

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Speaker 4: today has little exposure to AI will have a lot

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Speaker 4: of exposure as this gets weaved into the fabric of

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Speaker 4: Apple's products, and that's a revenue opportunity for app.

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Speaker 3: And I'd say that was a drop the mic type

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Speaker 3: what Gene just said. And I know Gene talks about

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Speaker 3: like twenty percent, right, twenty percent of the world, like

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Speaker 3: consumers will interact with AI through Apple, through through an

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Speaker 3: Apple device. And it's so true because when you look

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Speaker 3: at what they did with WWDC, if the initial reaction

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Speaker 3: member moose in the street, they can't see forest through trees. Right,

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Speaker 3: they've missed Apple from five hundred billion to three trillion,

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Speaker 3: they'll miss it three to four trillion. Oh, I didn't

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Speaker 3: see anything big Yet you have savants like Gene, and

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Speaker 3: then I file in terms of like the way I

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Speaker 3: view to be in there, I'm like, this is it?

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Speaker 2: This?

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Speaker 3: Because every consumer AI is now goes through Coopertino and Apple.

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Speaker 3: And guess what that means. That's gonna be a whole

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Speaker 3: other renaissance going terms the AI driven upgrade cycle on iPhone,

434
00:24:32,440 --> 00:24:35,879
Speaker 3: but also services those applications hundreds and hundreds that are

435
00:24:35,880 --> 00:24:38,480
Speaker 3: gonna be built. That's for consumers.

436
00:24:38,680 --> 00:24:40,240
Speaker 2: So do you see how long?

437
00:24:40,560 --> 00:24:42,800
Speaker 4: How long does it take for as soon as they

438
00:24:42,800 --> 00:24:45,960
Speaker 4: turn on Apple Intelligence and these new phones come out,

439
00:24:46,240 --> 00:24:49,000
Speaker 4: how long does it take for the kind of the

440
00:24:49,160 --> 00:24:51,879
Speaker 4: word of mouth like people handing their phones to someone

441
00:24:51,880 --> 00:24:54,960
Speaker 4: else and showing the generative features on it? How long

442
00:24:55,000 --> 00:24:57,760
Speaker 4: do you think it takes to start to accelerate the

443
00:24:57,840 --> 00:24:58,600
Speaker 4: iPhone growth?

444
00:24:58,640 --> 00:25:01,439
Speaker 3: Well, I think it's gonna be quick. Think I think

445
00:25:01,480 --> 00:25:03,840
Speaker 3: it's actually gonna be within the cycle even going into

446
00:25:03,880 --> 00:25:08,040
Speaker 3: holiday season. But neither I'd say what Gene's talking about.

447
00:25:08,080 --> 00:25:09,760
Speaker 3: Let's say me and Gene are at dinner in the

448
00:25:09,880 --> 00:25:12,600
Speaker 3: six to one to two. Okay, Okay, We're sitting there

449
00:25:12,640 --> 00:25:15,600
Speaker 3: and Gene show me his new iPhone sixteen is all

450
00:25:15,640 --> 00:25:17,919
Speaker 3: these and I'm like, oh, how do I? Oh? No,

451
00:25:18,040 --> 00:25:20,800
Speaker 3: I can't do that if I have an iPhone fourteen

452
00:25:21,520 --> 00:25:25,160
Speaker 3: or an iPhone thirteen. So this is going to catalyze

453
00:25:25,760 --> 00:25:28,600
Speaker 3: the beginning of an AI driven supercycle.

454
00:25:29,400 --> 00:25:32,639
Speaker 1: How does that play out into some of Apple's smartphone

455
00:25:32,640 --> 00:25:35,240
Speaker 1: competitors like Samsung, Apple.

456
00:25:35,080 --> 00:25:38,840
Speaker 3: Plays chess, they play checkers. Because it goes back to

457
00:25:39,000 --> 00:25:42,440
Speaker 3: two point two billion iOS devices one point five billion iPhones.

458
00:25:42,760 --> 00:25:46,000
Speaker 3: I mean, that's the difference between Apple and everyone else.

459
00:25:46,840 --> 00:25:50,560
Speaker 3: And I pose a question of Gene. Gene, what's your

460
00:25:50,680 --> 00:25:54,320
Speaker 3: view of when everyone goes to you or the Apple

461
00:25:54,720 --> 00:25:57,680
Speaker 3: they're late to the game, like they're late on AI.

462
00:25:58,240 --> 00:26:01,400
Speaker 3: They've missed it. So what would you say to.

463
00:26:01,400 --> 00:26:04,520
Speaker 4: That AI hasn't even started? How can you be late

464
00:26:04,560 --> 00:26:07,880
Speaker 4: to something that hasn't started? And when I now define

465
00:26:07,880 --> 00:26:11,800
Speaker 4: that is that typical person has heard probably heard about AI,

466
00:26:11,920 --> 00:26:15,200
Speaker 4: but actually doesn't use it. The reason why open Ai

467
00:26:15,520 --> 00:26:19,679
Speaker 4: is giving away this incredibly intelligent model by the world's

468
00:26:19,680 --> 00:26:24,000
Speaker 4: smartest foundation model for Apple is because the power of

469
00:26:24,040 --> 00:26:27,359
Speaker 4: their distribution, and that piece is just that is a

470
00:26:27,359 --> 00:26:31,280
Speaker 4: tsunami that's getting unleashed that Apple has just been waiting

471
00:26:31,320 --> 00:26:35,040
Speaker 4: to turn onto the market, and so my sense is

472
00:26:35,119 --> 00:26:38,199
Speaker 4: that time is in the Apple's favor. They waited, they

473
00:26:38,320 --> 00:26:41,880
Speaker 4: put together the right lineup for AI, and now they're

474
00:26:41,920 --> 00:26:45,359
Speaker 4: going to get a chance for everyday people to experience it.

475
00:26:45,320 --> 00:26:47,280
Speaker 1: And we're going to get more into where we are

476
00:26:47,680 --> 00:26:50,720
Speaker 1: in this artificial intelligence cycle. As we wrap up this

477
00:26:50,880 --> 00:26:54,160
Speaker 1: hour long big tech roundtable with Gene Monster of Deepwater

478
00:26:54,200 --> 00:26:56,920
Speaker 1: Asset Management and Dan Ives of web Bush Securities, as

479
00:26:56,960 --> 00:27:01,000
Speaker 1: the special edition of Bloomberg Daybreak continues thirty seven minutes

480
00:27:01,040 --> 00:27:04,720
Speaker 1: past the hour, I'm Nathan Hager, and this is bloom Brown.

481
00:27:14,960 --> 00:27:17,879
Speaker 1: Welcome back to this special edition of Bloomberg Daybreak. I'm

482
00:27:17,920 --> 00:27:20,720
Speaker 1: Nathan Hager. US markets are closed for the fourth of

483
00:27:20,800 --> 00:27:23,399
Speaker 1: July holiday and it's time to close out this special

484
00:27:23,480 --> 00:27:26,040
Speaker 1: high tech roundtable. We have been spending the entire hour

485
00:27:26,160 --> 00:27:29,480
Speaker 1: with Gene Munster, managing partner in Deepwater Asset Management and

486
00:27:29,560 --> 00:27:33,640
Speaker 1: Wedbush Security senior equity research analyst Dan Ives. And Dan,

487
00:27:33,680 --> 00:27:35,840
Speaker 1: I want to pick up on a point that Jane

488
00:27:35,880 --> 00:27:39,080
Speaker 1: made at the end of the last segment that you know,

489
00:27:39,119 --> 00:27:43,639
Speaker 1: we're still at the start of this artificial intelligence boom,

490
00:27:43,840 --> 00:27:47,159
Speaker 1: and how can companies be left behind if we're just

491
00:27:47,280 --> 00:27:50,359
Speaker 1: at the start of it. Do you see companies that

492
00:27:50,520 --> 00:27:53,280
Speaker 1: could be left behind in the aim?

493
00:27:53,440 --> 00:27:55,640
Speaker 3: I think many. I mean I've met with many companies

494
00:27:55,680 --> 00:27:59,080
Speaker 3: They'll say AI thirty times in an hour, and I

495
00:27:59,200 --> 00:28:02,480
Speaker 3: leave the the meeting being like, oh, it's gonna be

496
00:28:02,520 --> 00:28:06,040
Speaker 3: a rough road. So the point is like, it's about

497
00:28:06,080 --> 00:28:12,560
Speaker 3: the technology, the software engineers, the install base, your sales execution.

498
00:28:12,680 --> 00:28:15,119
Speaker 3: I mean, look, if someone told you Dell was an

499
00:28:15,160 --> 00:28:17,960
Speaker 3: AI place six months ago, you say, no way, what

500
00:28:18,080 --> 00:28:20,800
Speaker 3: could oracle? So the stronger are gonna get stronger when

501
00:28:20,800 --> 00:28:23,080
Speaker 3: the losers are going to be a glad The niche

502
00:28:23,119 --> 00:28:27,119
Speaker 3: players squeezed out of sales cycles don't have the scale

503
00:28:27,320 --> 00:28:32,000
Speaker 3: lead to the game lose software engineers. AI engineers are rare,

504
00:28:32,359 --> 00:28:34,679
Speaker 3: right in terms of where we are today. So I

505
00:28:34,760 --> 00:28:38,360
Speaker 3: do think this is gonna be one like strong gets stronger,

506
00:28:38,520 --> 00:28:39,760
Speaker 3: And that's just the reality.

507
00:28:39,880 --> 00:28:43,280
Speaker 1: What do you see things gene? Are there companies that

508
00:28:43,320 --> 00:28:44,200
Speaker 1: could be left behind?

509
00:28:44,600 --> 00:28:47,920
Speaker 4: I think that most companies will have a benefit, but yes,

510
00:28:47,960 --> 00:28:51,120
Speaker 4: there'll be companies that will get left behind. They won't

511
00:28:51,120 --> 00:28:52,920
Speaker 4: be able to keep up. And I think that what

512
00:28:52,960 --> 00:28:55,920
Speaker 4: we've seen is that in the hardware world that is

513
00:28:55,960 --> 00:28:58,840
Speaker 4: where all the action is today. The software software companies,

514
00:28:58,880 --> 00:29:01,200
Speaker 4: the big software companies are based flat. They're down a

515
00:29:01,200 --> 00:29:04,520
Speaker 4: few percent this year, which is remarkable compared to the

516
00:29:04,520 --> 00:29:07,840
Speaker 4: hardware which is up called average fifty percent. So I

517
00:29:07,880 --> 00:29:11,000
Speaker 4: think where the companies get left behind is this up

518
00:29:11,000 --> 00:29:13,280
Speaker 4: and coming class. And at deep Water we focus on

519
00:29:13,920 --> 00:29:16,080
Speaker 4: we have the benefit of doing both public and private.

520
00:29:16,120 --> 00:29:19,120
Speaker 4: And on the private side there is these anointed AI

521
00:29:19,200 --> 00:29:21,680
Speaker 4: companies some of them some of them everyone's heard of

522
00:29:21,760 --> 00:29:25,080
Speaker 4: open ai and Xai, but there's other ones that people

523
00:29:25,680 --> 00:29:28,560
Speaker 4: haven't heard of, like Data Bricks and Andril. And I

524
00:29:28,640 --> 00:29:31,560
Speaker 4: think that there is going to be a class that's

525
00:29:31,600 --> 00:29:34,240
Speaker 4: going to go public in twenty five, twenty six, twenty

526
00:29:34,280 --> 00:29:37,640
Speaker 4: seven that is going to challenge some of the software

527
00:29:37,680 --> 00:29:41,720
Speaker 4: companies that have had great businesses for the last fifteen years.

528
00:29:41,760 --> 00:29:44,360
Speaker 4: And so I think I don't have the these three

529
00:29:44,400 --> 00:29:46,200
Speaker 4: companies are going to be at risk, but I would

530
00:29:46,240 --> 00:29:49,400
Speaker 4: just point out this. I think that the private software

531
00:29:49,520 --> 00:29:55,200
Speaker 4: opportunity around AI is going to be headlines in twenty five,

532
00:29:55,240 --> 00:29:56,280
Speaker 4: twenty six, and twenty.

533
00:29:56,080 --> 00:29:59,640
Speaker 1: Seven speaking of headlines. When we have this kind of

534
00:29:59,760 --> 00:30:02,920
Speaker 1: ma massive run in the stocks and a lot of

535
00:30:02,920 --> 00:30:05,800
Speaker 1: these companies that we talk about day in and day out,

536
00:30:05,840 --> 00:30:08,800
Speaker 1: there's been a lot of regulatory scrutiny as well. I'm

537
00:30:08,840 --> 00:30:11,480
Speaker 1: thinking particularly about a lot of the action that's been

538
00:30:11,480 --> 00:30:15,680
Speaker 1: happening in the European Union when it comes to Apple, now,

539
00:30:15,760 --> 00:30:21,240
Speaker 1: Meta platforms, Dan. Is that a potential risk, potential head

540
00:30:21,320 --> 00:30:26,360
Speaker 1: risk for some of these companies. The idea of regulatory scrutiny.

541
00:30:26,480 --> 00:30:29,680
Speaker 3: Look, I think right now, regulatory is in a mini

542
00:30:29,760 --> 00:30:33,680
Speaker 3: van going fifty five miles an hour in the right lane,

543
00:30:33,800 --> 00:30:36,240
Speaker 3: and in the left lane is the technology in the

544
00:30:36,280 --> 00:30:41,000
Speaker 3: Bugatti going one hundred miles an hour? The point is regulatory.

545
00:30:41,560 --> 00:30:45,360
Speaker 3: I view it as more background there every look the certainties.

546
00:30:45,400 --> 00:30:50,840
Speaker 3: When you wake up coffee, you're gonna get deleyed on

547
00:30:50,920 --> 00:30:55,160
Speaker 3: some mass transportation train plane and the EU is going

548
00:30:55,240 --> 00:30:58,880
Speaker 3: to find a big tech player. So the point is

549
00:30:59,200 --> 00:31:02,480
Speaker 3: this is I think the streets almost become immune and

550
00:31:02,560 --> 00:31:06,680
Speaker 3: I don't see that it spoils the AI party, which

551
00:31:06,720 --> 00:31:09,320
Speaker 3: I believe. It's still nine pm and it goes to

552
00:31:09,400 --> 00:31:14,640
Speaker 3: four am. Geane, do you think Europe just falls so

553
00:31:14,880 --> 00:31:20,000
Speaker 3: far behind us? Asia other parts of the world because

554
00:31:20,040 --> 00:31:21,880
Speaker 3: of this regulatory.

555
00:31:23,800 --> 00:31:27,280
Speaker 4: I think that at the highest level, Yes, I think

556
00:31:27,320 --> 00:31:30,600
Speaker 4: that their restrictive policies are going to have an impact.

557
00:31:30,640 --> 00:31:32,960
Speaker 4: You need to be embracing these and so I do

558
00:31:33,000 --> 00:31:35,760
Speaker 4: think that there's risk what the EU is doing as

559
00:31:36,240 --> 00:31:41,440
Speaker 4: risk beyond what the regulators understand, and so my general

560
00:31:41,520 --> 00:31:44,680
Speaker 4: sense is that they need to make some changes. It's

561
00:31:44,680 --> 00:31:47,720
Speaker 4: not going to happen. I love your analogy about things

562
00:31:47,760 --> 00:31:50,360
Speaker 4: you can depend on in life. Yes, the EU finding

563
00:31:50,360 --> 00:31:52,840
Speaker 4: some going after some big tech company, and I would

564
00:31:52,840 --> 00:31:54,840
Speaker 4: just add one other piece just around this. It's just

565
00:31:54,880 --> 00:31:57,400
Speaker 4: a chess match. And the reason why, just to put

566
00:31:57,400 --> 00:32:00,000
Speaker 4: another point on what Dan said, the reason why invest

567
00:32:00,320 --> 00:32:03,920
Speaker 4: don't care is because they understand that these big tech

568
00:32:03,920 --> 00:32:07,080
Speaker 4: companies can find ways to get around any of the regulations,

569
00:32:07,120 --> 00:32:12,960
Speaker 4: effectively dampening what their potential penalties are. And so I'm

570
00:32:13,000 --> 00:32:16,120
Speaker 4: more confident that big tech can figure it out and

571
00:32:16,120 --> 00:32:17,320
Speaker 4: get around these hurdles.

572
00:32:17,720 --> 00:32:20,880
Speaker 1: Well, what should investors be worried about when it comes

573
00:32:20,920 --> 00:32:26,040
Speaker 1: to the growth that we've seen in AI companies gene Well.

574
00:32:25,840 --> 00:32:29,720
Speaker 4: This is one of the bizarre parts of this piece.

575
00:32:29,760 --> 00:32:32,360
Speaker 4: And Dan and I were around during the Internet bubble,

576
00:32:33,080 --> 00:32:36,960
Speaker 4: and the analogy. I'd say the thing that when I

577
00:32:36,960 --> 00:32:40,320
Speaker 4: get asked like what's most concerning, it's around how it's

578
00:32:40,320 --> 00:32:42,320
Speaker 4: going to impact how we think and how we feel

579
00:32:42,360 --> 00:32:45,160
Speaker 4: about each other. I talked about that earlier. But from

580
00:32:45,480 --> 00:32:51,920
Speaker 4: the standpoint of what's concerning to stop this, I think

581
00:32:51,960 --> 00:32:56,000
Speaker 4: the only things would be something around availability of power

582
00:32:56,600 --> 00:33:01,640
Speaker 4: and maybe something around Taiwan. But beyond the ad this

583
00:33:02,000 --> 00:33:05,560
Speaker 4: is this rocket is going to take off, and I'm

584
00:33:06,280 --> 00:33:10,440
Speaker 4: I always embrace like identifying what the real risk is,

585
00:33:10,480 --> 00:33:13,160
Speaker 4: and they're pretty distant this is going to happen.

586
00:33:13,840 --> 00:33:17,520
Speaker 1: We're speaking with Gene Munster, managing partner Deepwater Asset Management,

587
00:33:17,600 --> 00:33:22,240
Speaker 1: and Dan Ives's senior equity research analyst at web Bush Securities.

588
00:33:22,800 --> 00:33:25,160
Speaker 1: You're talking about it as a nine pm and a

589
00:33:25,240 --> 00:33:29,080
Speaker 1: four am party, Dan, but do you see any potential

590
00:33:29,200 --> 00:33:34,560
Speaker 1: risks to the AI run. Could we be driving these

591
00:33:34,560 --> 00:33:36,240
Speaker 1: companies up into an asset bubble?

592
00:33:36,760 --> 00:33:39,680
Speaker 3: I mean, I think there's a two year bull cycle.

593
00:33:40,200 --> 00:33:43,200
Speaker 3: I mean at points when we get towards three thirty

594
00:33:43,200 --> 00:33:47,440
Speaker 3: four am, there will be issues, especially for ones that

595
00:33:47,520 --> 00:33:51,920
Speaker 3: don't actually execute, but I see it it's an auto bond.

596
00:33:52,480 --> 00:33:56,040
Speaker 3: We'll have some issues with quarters and air pockets and

597
00:33:56,080 --> 00:33:59,360
Speaker 3: worries and bears that have been negative and tech philist

598
00:33:59,480 --> 00:34:02,280
Speaker 3: you know since two thousand and nine, come out again

599
00:34:02,360 --> 00:34:05,320
Speaker 3: saying that this is a bubble. The reality is it's

600
00:34:05,360 --> 00:34:09,279
Speaker 3: a Fourth Industrial Revolution plan out and some look, some

601
00:34:09,360 --> 00:34:12,239
Speaker 3: are gonna look at this party from the outside and

602
00:34:12,280 --> 00:34:13,799
Speaker 3: they'll be like, you know what, I'm just gonna eat

603
00:34:13,840 --> 00:34:17,520
Speaker 3: ice cream in my room. Guess what, let's meet at

604
00:34:17,600 --> 00:34:21,000
Speaker 3: six am for breakfast. I'll go to the party, they go,

605
00:34:21,160 --> 00:34:23,560
Speaker 3: and who had the better night? And the point is,

606
00:34:23,680 --> 00:34:25,719
Speaker 3: I think as it all plays out, that's it. This

607
00:34:25,800 --> 00:34:29,080
Speaker 3: is a tech bowl marker. You could deny it, the

608
00:34:29,239 --> 00:34:33,440
Speaker 3: multiplier impacts. Just starting with Godfather of Ai Jensen a video.

609
00:34:33,880 --> 00:34:36,040
Speaker 1: Just to carry over the analogy. What's the risk of

610
00:34:36,080 --> 00:34:37,240
Speaker 1: a six am hangover?

611
00:34:37,920 --> 00:34:40,719
Speaker 3: First of all, there's after parties at five and six am,

612
00:34:41,040 --> 00:34:44,640
Speaker 3: and then even in those you'll have some that fall

613
00:34:44,680 --> 00:34:46,880
Speaker 3: by the wayside. But if you focus on the winners

614
00:34:46,920 --> 00:34:50,520
Speaker 3: and keep the thesis again, we're gonna be talking about

615
00:34:50,680 --> 00:34:55,879
Speaker 3: four trillion, five trillion dollar mark aps Nazdak twenty twenty two,

616
00:34:56,280 --> 00:35:01,160
Speaker 3: twenty five K over the next three four five years.

617
00:35:01,160 --> 00:35:04,640
Speaker 1: In my opinion, is that something that you agree with Gene.

618
00:35:06,280 --> 00:35:08,440
Speaker 4: Yes, I mean, I like Dan's party analogy is much

619
00:35:08,480 --> 00:35:11,160
Speaker 4: more of my baseball analogies. But I'm at the third

620
00:35:11,200 --> 00:35:14,120
Speaker 4: inning of this, and we think we're in the early

621
00:35:14,160 --> 00:35:16,400
Speaker 4: stages of a three to five year bull market, and

622
00:35:17,080 --> 00:35:19,399
Speaker 4: I don't I wouldn't. Don't worry about the after don't

623
00:35:19,400 --> 00:35:21,360
Speaker 4: worry about the hangover. At this point, I think you

624
00:35:21,960 --> 00:35:25,960
Speaker 4: just embrace that this is as the substance will exceed

625
00:35:26,000 --> 00:35:29,200
Speaker 4: the hype and we've got some great years ahead of

626
00:35:29,280 --> 00:35:29,960
Speaker 4: us from the market.

627
00:35:30,280 --> 00:35:30,360
Speaker 2: Now.

628
00:35:30,400 --> 00:35:33,120
Speaker 1: Obviously we've been talking a lot about the Magnificent seven

629
00:35:33,200 --> 00:35:38,000
Speaker 1: stocks and VideA leading the way in lots of aspects.

630
00:35:38,080 --> 00:35:41,279
Speaker 1: But as we close out this our guys, let's talk

631
00:35:41,320 --> 00:35:44,880
Speaker 1: a little bit about some of the names that maybe

632
00:35:44,920 --> 00:35:52,040
Speaker 1: you'd advise investors to steer clear of entirely. Start with you, Gene, Well.

633
00:35:51,880 --> 00:35:54,439
Speaker 4: This is one that I've had talk about in the past.

634
00:35:54,520 --> 00:35:57,239
Speaker 4: I've been wrong. I'm gonna stick with it. It's Netflix.

635
00:35:58,600 --> 00:36:02,239
Speaker 4: It's a bigger company, and it's one that has a

636
00:36:02,360 --> 00:36:05,120
Speaker 4: benefit to AI, but it's not like a true AI company.

637
00:36:05,120 --> 00:36:07,440
Speaker 4: It's content, and I think that there is a shift

638
00:36:07,480 --> 00:36:09,960
Speaker 4: going on in content to the creator economy. Let's think

639
00:36:10,000 --> 00:36:13,440
Speaker 4: of it as what's happened in YouTube and TikTok multiplied

640
00:36:13,440 --> 00:36:18,000
Speaker 4: by many times, and I think Hollywood's going to get disrupted.

641
00:36:18,000 --> 00:36:20,120
Speaker 4: I think companies like Netflix are going to get disrupted,

642
00:36:20,239 --> 00:36:24,040
Speaker 4: and I think that it's just not that exciting of

643
00:36:24,080 --> 00:36:25,960
Speaker 4: a story on top of it interesting.

644
00:36:26,800 --> 00:36:30,600
Speaker 1: What's your view on where the entertainment industry is going down?

645
00:36:31,400 --> 00:36:35,120
Speaker 3: I mean, look, I think you could play the scary

646
00:36:35,280 --> 00:36:37,520
Speaker 3: sort of angle we saw with some of the Hollywood

647
00:36:37,560 --> 00:36:40,120
Speaker 3: strikes in terms of how it's going to impact negatively.

648
00:36:40,680 --> 00:36:43,680
Speaker 3: I actually think it's going to create sub industries and

649
00:36:43,719 --> 00:36:48,239
Speaker 3: companies that are massively successful streaming. There is a revolution

650
00:36:48,440 --> 00:36:52,359
Speaker 3: going on. It's content driven, and you're going to see

651
00:36:52,400 --> 00:36:56,920
Speaker 3: more and more entertainment companies, applications going to be built

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00:36:57,040 --> 00:37:00,600
Speaker 3: on top of watching sports, watching entertainment, gonna be able

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00:37:00,640 --> 00:37:04,040
Speaker 3: to go into a movie, whether it's a vision pro

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00:37:04,200 --> 00:37:07,480
Speaker 3: or others that you'll be bringing in. The point is this,

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00:37:08,080 --> 00:37:11,080
Speaker 3: things are gonna be happening over the coming years that

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00:37:11,160 --> 00:37:13,560
Speaker 3: you never would have imagined today, and there's gonna be

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00:37:13,640 --> 00:37:17,160
Speaker 3: winners from that and losers. And I think that's something

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00:37:17,280 --> 00:37:20,040
Speaker 3: as it all plays out. That's why you listen to

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Speaker 3: people like Gene because they don't get nerve on quarters.

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Speaker 3: They don't all of a sudden like so many others,

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00:37:28,080 --> 00:37:30,560
Speaker 3: just follow the herd and go negative. That the farest

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00:37:30,600 --> 00:37:33,719
Speaker 3: through the trees. That's why if Gene was a pilot,

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00:37:34,320 --> 00:37:37,880
Speaker 3: I'd be I'd be in three a drinking cabernet. I

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00:37:37,880 --> 00:37:40,520
Speaker 3: feel I'm pretty comfortable watching Netflix over.

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Speaker 1: There in first class. What about winners, dan Ives, what

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00:37:44,560 --> 00:37:46,600
Speaker 1: what are your biggest names that you're looking at to

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00:37:46,840 --> 00:37:49,040
Speaker 1: really do well in the long term.

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00:37:49,080 --> 00:37:52,040
Speaker 3: I think the MESSI of AI pounteer front and center.

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00:37:52,080 --> 00:37:56,440
Speaker 3: I think names like service Now Oracle with the renaissance

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00:37:56,480 --> 00:38:01,360
Speaker 3: of growth. I look at names like Mango, dB you know,

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00:38:01,400 --> 00:38:04,080
Speaker 3: and then of course Microsoft being one of our top picks.

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00:38:04,200 --> 00:38:06,399
Speaker 3: I think what's gonna happen is in software and even

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00:38:06,480 --> 00:38:10,600
Speaker 3: cybersecurity themes that CrowdStrike, Z scale pow out. Though there's

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00:38:10,600 --> 00:38:13,400
Speaker 3: gonna be a massive talent in terms of these AI

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00:38:13,640 --> 00:38:17,880
Speaker 3: driven workloads as the Batanga ten from send me to software.

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Speaker 1: Of course, uh, we know your coverage of Apple and

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00:38:22,760 --> 00:38:25,319
Speaker 1: some of the other big cap tech names. Geene, what

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00:38:25,360 --> 00:38:28,840
Speaker 1: are some of your biggest winners As we think farther

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00:38:28,920 --> 00:38:31,680
Speaker 1: ahead into where we could be in this tech cycle.

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Speaker 4: Apple is going to surprise people over the next few years.

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00:38:35,800 --> 00:38:39,960
Speaker 4: I think Tesla is going to surprise people around these

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00:38:40,040 --> 00:38:41,759
Speaker 4: variant vehicles that they're going to come up with. And

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Speaker 4: I think there's gonna be some legs to Optimus on

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00:38:44,800 --> 00:38:47,279
Speaker 4: the where else, as I mentioned, spent a lot of

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00:38:47,280 --> 00:38:49,640
Speaker 4: time on the private side. I think companies like Xai

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00:38:50,320 --> 00:38:54,240
Speaker 4: are gonna be one of the anointed foundation models. Data Bricks,

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00:38:54,280 --> 00:38:57,680
Speaker 4: I think is another company I mentioned Andrew before. This

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00:38:57,719 --> 00:39:00,359
Speaker 4: is kind of the future of defense tech. And well,

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00:39:00,360 --> 00:39:04,120
Speaker 4: those three are difficult to invest in today, they soon

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Speaker 4: in matter of a few years, will be public.

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Speaker 1: Really appreciate having you both on to take this longer

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00:39:09,719 --> 00:39:13,919
Speaker 1: term view in an hour long roundtable discussion on this

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Speaker 1: massive bull run that we continue to see in the

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Speaker 1: tech space. Thanks to both of you for being with

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00:39:20,360 --> 00:39:23,720
Speaker 1: us Web Bush Security Senior Equity research channalyst Dan Ives

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00:39:24,080 --> 00:39:28,280
Speaker 1: along with Gene Munster, managing partner at Deepwater Asset Management,

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00:39:28,320 --> 00:39:31,279
Speaker 1: spending the entire hour with us on this special edition

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Speaker 1: of Bloomberg Daybreak.

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Speaker 2: So there's Dan Ives and Gene Munster with Nathan Haggard.

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Speaker 2: Look for Bloomberg Daybreak way too early in the morning,

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00:39:39,000 --> 00:39:42,600
Speaker 2: and then of course look for Bloomberg surveillance on YouTube,

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00:39:42,680 --> 00:39:46,840
Speaker 2: on Apple car play, on Android Auto, and on Apple podcast.

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Speaker 2: So special edition of single Best I You