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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 bulcase for AI

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Speaker 1: 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 2: My opinion, it's a fourth in dust show revolution that's

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Speaker 2: playing out in front of our eyes.

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Speaker 3: This is the start of a new tech bull market.

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Speaker 2: Which is why we think second half of the year

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Speaker 2: at tech could be up fifteen, potentially twenty percent in

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Speaker 2: a much broader rally because of what's happening from a

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Speaker 2: growth perspective. I think it's AI is 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: it dan, can these make a cap tech names keep

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Speaker 1: up that 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 bull

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

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Speaker 3: dollar spent on in vidio chip, there's an eight to

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Speaker 3: ten multiplier across software, across infrastructure, across the rest of

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Speaker 3: the tech. That's why this is a nineteen moment, not

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Speaker 3: a ninety ninety nine movement. Get out the popcorn. We

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Speaker 3: should detect will 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 going to be some ebbs and flows in terms

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

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

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Speaker 4: of 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 of 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 Nvidia,

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

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Speaker 1: Darling Dan, You've called Jensen Wong the CEO, the godfather

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Speaker 1: of AI. But godfathers often have targets on their backs.

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Speaker 1: I mean, how big a target is in Vidia right

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Speaker 1: now when 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 pay 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 Nvidia.

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Speaker 3: In that mount rushmore of AI, along with the Della

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Speaker 3: and others that want to join. But this is they're

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Speaker 3: miles ahead of the competition. It'll EBB and flow a

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Speaker 3: year from now. I think we're looking at three four

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Speaker 3: trillion dollars markaps Apple, Microsoft and Nvidia, And as Jeans

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Speaker 3: talked about throughout the year, it's far through the trees.

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Speaker 3: You don't get too caught up with sometimes the gyrations week,

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Speaker 3: tweet quarter quarter, it's where this is all going well.

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Speaker 1: We have seen gyrations just in recent weeks since the

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Speaker 1: ten for one stock split for Nvidia. Gene, where do

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

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Speaker 4: I mean that's exact exactly that this is just gyrations,

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

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

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

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

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Speaker 4: genitive AI inspired world that hasn't really taken impact on

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Speaker 4: most of our lives, but a generitive AI inspired world,

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Speaker 4: and if you believe that eventually that leads to artificial

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Speaker 4: general intelligence, which is a light year ahead of genitive AI.

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

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

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

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Speaker 4: then in Vidia is going a lot higher in Vidia.

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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 Bush

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Speaker 1: Security joining us in studio Genus 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 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 at 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 to people saying in type and

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

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

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

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Speaker 3: in terms of where this is all heading, and they're

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Speaker 3: the only show in town in terms of those chips.

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Speaker 3: That's why I believe this is one where they continued

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Speaker 3: to defy show numbers that I think are jaw droppers,

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Speaker 3: and now the second, third, fourth derivatives hit across the

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Speaker 3: rest at 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 Nvidia 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 Nvidia 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 hyper scalers, We're going to see a

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

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Speaker 4: be sovereign aim from countries, and so they will start

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

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

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Speaker 4: in Nvidia's demand. It's a great thing for investors because

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Speaker 4: of course, when they have good numbers and they say

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Speaker 4: we can't keep up, that allows investors to kind of

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Speaker 4: continue to maintain a lot of their optimism. And so

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Speaker 4: I think it's actually okay that it'll be fine for

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Speaker 4: the stocks that and video can't keep up with this demand.

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

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

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Speaker 4: going on now is generitive AI, and then how would

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Speaker 4: you I describe there's a light year gap between generitive

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Speaker 4: AI and general intelligence, because this is where you and

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

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

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

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

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Speaker 4: terms of 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 two percent of data that's never

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

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Speaker 3: ultimately by consumers is now going to get unlocked and

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Speaker 3: you're going to have on the consumer side hundreds of

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

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

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

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

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

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

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

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Speaker 3: be 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. That 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 questions,

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Speaker 1: as a lot of these big tech companies do try

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

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

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Speaker 1: 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 AI GPT three

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

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

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

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

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Speaker 4: is to look at the number of parameters and so

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

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Speaker 4: it's getting going almost a ten x improvement and intelligence.

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

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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 what

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Speaker 4: companies to continue to build into this, and I think

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Speaker 4: it's I appreciate your point about how can this be?

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Speaker 4: You know, what are the negative sides? And I would

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Speaker 4: just my view is this. You can debate a lot

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Speaker 4: of angles around how can this be negative or positive?

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Speaker 4: I think the one piece that cannot be debated is

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Speaker 4: it's going to get harder for people to distinguish what

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Speaker 4: is truth and fiction and all the ramifications around that.

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

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

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

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Speaker 4: so I think that that side's the most actually concerning

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Speaker 4: part of me. And just think about like global stability

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

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

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Speaker 4: people up or anything like that. I think it's this

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Speaker 4: is just about how AI influences how we think.

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Speaker 3: Now.

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Speaker 1: I want to get deep 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 Vidia.

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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 moons 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 deep Water Asset. Is this

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

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Speaker 1: twenty minutes past the hour. I'm Nathan Hager, and this

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Speaker 1: is Bloomberg. Welcome back to this special edition of Bloomberg Daybreak.

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Speaker 1: I'm Nathan Hager. US markets are closed for the fourth

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Speaker 1: of July, but we're breaking out the fireworks for a

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Speaker 1: high tech power hour. We're back with Dan Ives, senior

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Speaker 1: equity research analystic wet Bush Securities, and deep Water Asset

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Speaker 1: Management's managing partner Gene Munster, and guys, we've been talking

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Speaker 1: a lot about Nvidia for obvious reasons. I want to

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Speaker 1: get into some other names. Though with exposure to the

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Speaker 1: AI space, there has been a lot of talk about

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Speaker 1: Tesla as a potential AI play. Dan, I know you've

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Speaker 1: been bullish on this stock for quite some time. How

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Speaker 1: important is artificial intelligence going to be? Though, when it

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Speaker 1: comes to 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 think about

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

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

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Speaker 3: biggest bowl case for Tesla is I could argue it's

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Speaker 3: probably the most undervalued AI name in the market relative

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

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Speaker 3: easy to focus on. Okay, they missed deliveries by x amount,

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Speaker 3: that's far as through the trees. We were focused on AI, FSD,

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Speaker 3: autonomous and I know gene Is does a ton of

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Speaker 3: work here, a ton of great work in terms of

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Speaker 3: autonomous FSD, and I think this to me is a

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Speaker 3: new It's really going to be in transformation that we

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Speaker 3: 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 4: I do. I think it's going to pay off faster

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Speaker 4: than what people expect. I think we're going to have

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Speaker 4: a GPT moment when it comes to autonomy and you

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Speaker 4: look at the broader auto space, this has kind of

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

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Speaker 4: last year we saw companies pairing back, some of the

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Speaker 4: big auto pairing back in their investment and autonomy. We've

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

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

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

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Speaker 4: this is really the central opportunity to invest in Tesla

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

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

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Speaker 4: going to come earlier than what we think. My prediction

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Speaker 4: is that if you're probably seven eight years old today,

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Speaker 4: you're never going to have the need to drive a car,

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

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

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

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Speaker 4: holding this up. And then one other piece to the

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

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

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Speaker 4: and FSD is 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 investor should

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Speaker 4: care about today? Yeah?

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Speaker 3: Exactly Jane's point. If I bring that up in an

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

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Speaker 3: could you even talk about that? 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 ROBOTAXI. Obviously there's

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Speaker 1: the August eighth uh 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 think agree but also disagree because

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Speaker 3: the point is, there was a point where if you

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Speaker 3: said Tesla's going to be producing a million units per

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Speaker 3: year exactly, and gen Gene remembers, they'd be like, wow, yeah,

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Speaker 3: you must drink a lot of rose or had a

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Speaker 3: good Friday night. And now we're coast to two million,

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Speaker 3: and look at profitability when and today how much free

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Speaker 3: cash are they 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 you know, base business

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

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Speaker 1: of letting 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 traditionalels have made around FSD

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Speaker 4: in the past six months, But if you look at

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

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Speaker 4: 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

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

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

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

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Speaker 4: Total market share.

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Speaker 3: Correct.

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Speaker 4: I think that is I'm talking ten years down the

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Speaker 4: road here, but I think that that is something again

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Speaker 4: because they can scale at a profit way. The consumer

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Speaker 4: brand matters in cars a lot, but ultimately they want

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Speaker 4: the best value.

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Speaker 1: Speaking with Gene Munster of Deepwater 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 win 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 is Musk. Musk is Tesla. So

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Speaker 3: that's why went everything that in terms of that twilight

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Speaker 3: doing that we saw in Delaware with the compackage, even

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

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Speaker 3: talking about Tesla being a trillion two trillion dollar markap

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Speaker 3: without Musk. I mean, you're talking about what I'd argue

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Speaker 3: Meyer and d Albert Einstein of course has flaws, has issues.

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Speaker 3: We 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 free Mont, you're in Nevada and you

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Speaker 3: see the actual battery factor. You go to China, you

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Speaker 3: have a different perspective what they've been able to do.

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Speaker 3: And then you look at all these other EV players

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Speaker 3: that have fallen. It's a graveyard. Because they talk a game,

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Speaker 3: big game, but as Gene said perfectly, the reality is

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Speaker 3: so much more difficult. And I think even in Detroit

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Speaker 3: they figured it out with Mary and what Farley's seen

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Speaker 3: as well, how 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 RT official intelligence theme as well, we've

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Speaker 1: got 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 VIR revenue

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

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

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Speaker 4: ten percent plus revenue growth for twenty twenty for calendar

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Speaker 4: twenty five. So I think that effectively. And Dan, I've

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

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Speaker 4: spot on just as this is the best consumer facing

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Speaker 4: AI company. I think that's the language that you've used.

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Speaker 4: I agree with that. I think that when you think

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Speaker 4: about AI, a lot of the attention goes to Nvidia

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Speaker 4: kind of on the build side. When it comes to

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Speaker 4: consumer AI, Apple is best positioned, I think, to bring hardware,

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Speaker 4: software services. It's their taglines. But it's true too, nobody

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Speaker 4: brings it better together better. What that means is the

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Speaker 4: average person who today has little exposure to AI will

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Speaker 4: have a lot of exposure as this gets weaved into

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Speaker 4: the fabric of Apple's products, and that's a revenue opportunity

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Speaker 4: for opp.

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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 an Apple device.

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Speaker 3: And it's so true because when you look at what

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Speaker 3: they did with WWDC if the initial reaction, remember most

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Speaker 3: 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 I file in terms of like the way

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

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Speaker 4: This?

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Speaker 3: Because every consumer AI is now goes through Cooper, Tino

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Speaker 3: and Apple. And guess what that means. That's gonna be

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Speaker 3: a whole other renaissance scroing term the AI driven upgrade

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Speaker 3: cycle on iPhone but also services those applications, hundreds and

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Speaker 3: hundreds that are gonna be built. That's for consumers. So

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Speaker 3: do you see how long?

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Speaker 4: How long does it take for as soon as they

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Speaker 4: turn on Apple Intelligence and these new phones come out,

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Speaker 4: how long does it take for the kind of the

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Speaker 4: word of mouth like people handing their phones to someone

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Speaker 4: else and showing the generative features on it? How long

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Speaker 4: do you think it takes to start to accelerate the

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Speaker 4: iPhone growth?

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Speaker 3: Well, I think it's gonna be quick. I think I

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Speaker 3: think it's actually gonna be within the cycle, even going

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Speaker 3: into holidays season. But neither i'd say what Gene's talking about.

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Speaker 3: Let's say me and Gene are at dinner in the

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Speaker 3: six to one to two Okay, Okay, We're sitting there

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Speaker 3: and Gene show me his new iPhone sixteen is all

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Speaker 3: these and I'm like, oh, how do I? Oh no,

435
00:24:02,440 --> 00:24:05,240
Speaker 3: I can't do that if I have an iPhone fourteen

436
00:24:05,960 --> 00:24:09,600
Speaker 3: or an iPhone thirteen. So this is going to catalyze

437
00:24:10,160 --> 00:24:13,040
Speaker 3: the beginning of an AI driven supercycle.

438
00:24:13,840 --> 00:24:17,040
Speaker 1: How does that play out into some of Apple's smartphone

439
00:24:17,040 --> 00:24:18,720
Speaker 1: competitors like Samsung?

440
00:24:19,000 --> 00:24:23,160
Speaker 3: Apple plays chess, they play checkers. Because it goes back

441
00:24:23,200 --> 00:24:26,000
Speaker 3: to two point two billion iOS devices one point five

442
00:24:26,040 --> 00:24:29,679
Speaker 3: billion iPhones. I mean that's the difference between Apple and

443
00:24:29,720 --> 00:24:34,200
Speaker 3: everyone else. And I pose a question in Gene, Gene,

444
00:24:34,280 --> 00:24:37,600
Speaker 3: what's your view of when everyone goes to you or

445
00:24:37,640 --> 00:24:41,440
Speaker 3: the Apple they're late to the game, Like they're late

446
00:24:41,600 --> 00:24:45,640
Speaker 3: on AI. They've missed it. So what would you say

447
00:24:45,680 --> 00:24:46,200
Speaker 3: to that.

448
00:24:46,400 --> 00:24:49,080
Speaker 4: AI hasn't even started? How can you be late to

449
00:24:49,119 --> 00:24:52,280
Speaker 4: something that hasn't started and when I and I'll define

450
00:24:52,320 --> 00:24:56,240
Speaker 4: that is that typical person has heard probably heard about AI,

451
00:24:56,359 --> 00:24:59,600
Speaker 4: but actually doesn't use it. The reason why open Ai

452
00:24:59,880 --> 00:25:04,119
Speaker 4: is giving away this incredibly intelligent model by the world's

453
00:25:04,119 --> 00:25:08,439
Speaker 4: smartest foundation model for Apple is because the power of

454
00:25:08,480 --> 00:25:11,800
Speaker 4: their distribution and that piece is just that is a

455
00:25:11,800 --> 00:25:15,679
Speaker 4: tsunami that's getting unleashed that Apple has just been waiting

456
00:25:15,720 --> 00:25:19,439
Speaker 4: to turn onto the market. And so my sense is

457
00:25:19,520 --> 00:25:22,960
Speaker 4: that time is in Apple's favor. They waited, they put

458
00:25:23,000 --> 00:25:26,399
Speaker 4: together the right lineup for AI, and now they're going

459
00:25:26,440 --> 00:25:29,600
Speaker 4: to get a chance for everyday people to experience it.

460
00:25:29,760 --> 00:25:31,680
Speaker 1: And we're going to get more into where we are

461
00:25:32,080 --> 00:25:35,160
Speaker 1: in this artificial intelligence cycle. As we wrap up this

462
00:25:35,280 --> 00:25:38,600
Speaker 1: hour long big Tech roundtable with Gene Monster of Deepwater

463
00:25:38,640 --> 00:25:41,320
Speaker 1: Asset Management and Dan Ives of web Bush Securities. As

464
00:25:41,400 --> 00:25:45,080
Speaker 1: the special edition of Bloomberg Daybreak continues, it's thirty seven

465
00:25:45,080 --> 00:25:48,320
Speaker 1: minutes past the hour. I'm Nathan Hager, and this is

466
00:25:48,560 --> 00:26:02,160
Speaker 1: Bloomberund Welcome back to this special edition of Blueberg Daybreak.

467
00:26:02,160 --> 00:26:05,080
Speaker 1: I'm Nathan Hagar. US markets are closed for the fourth

468
00:26:05,080 --> 00:26:07,399
Speaker 1: of July holiday, and it's time to close out this

469
00:26:07,480 --> 00:26:10,160
Speaker 1: special high tech roundtable. We have been spending the entire

470
00:26:10,200 --> 00:26:13,640
Speaker 1: hour with Gene Munster, managing partner at Deepwater Asset Management,

471
00:26:13,840 --> 00:26:17,720
Speaker 1: and Wedbush Security senior equity research analyst Dan Ives and

472
00:26:17,880 --> 00:26:19,919
Speaker 1: Dan I want to pick up on a point that

473
00:26:20,000 --> 00:26:22,679
Speaker 1: Gene made at the end of the last segment that

474
00:26:23,320 --> 00:26:26,719
Speaker 1: you know, we're still at the start of this artificial

475
00:26:26,840 --> 00:26:31,200
Speaker 1: intelligence boom and how can companies be left behind if

476
00:26:31,200 --> 00:26:33,479
Speaker 1: we're just at the start of it. Do you see

477
00:26:34,040 --> 00:26:37,760
Speaker 1: companies that could be left behind in the AIM?

478
00:26:37,880 --> 00:26:40,040
Speaker 3: I think many. I mean I've met with many companies

479
00:26:40,080 --> 00:26:43,520
Speaker 3: They'll say AI thirty times in an hour, and I

480
00:26:43,640 --> 00:26:46,600
Speaker 3: leave the I leave the meeting being like, oh, it's

481
00:26:46,640 --> 00:26:49,480
Speaker 3: gonna be a rough, rude. So the point is like,

482
00:26:49,920 --> 00:26:53,879
Speaker 3: it's about the technology, the software engineers, the install base,

483
00:26:55,680 --> 00:26:58,359
Speaker 3: your sales execution. I mean, look, if someone told you

484
00:26:58,440 --> 00:27:02,280
Speaker 3: Dell was an AI six months ago, you say, no way,

485
00:27:02,359 --> 00:27:04,680
Speaker 3: what could oracle? So the stronger are going to get

486
00:27:04,680 --> 00:27:06,920
Speaker 3: stronger when the losers are going to be a glad

487
00:27:06,960 --> 00:27:10,879
Speaker 3: The niche players squeezed out of sales cycles don't have

488
00:27:11,000 --> 00:27:14,960
Speaker 3: the scale lead to the game lose. Software engineers. AI

489
00:27:15,080 --> 00:27:18,360
Speaker 3: engineers are rare right in terms of where we are today.

490
00:27:18,840 --> 00:27:20,720
Speaker 3: So I do think this is going to be one

491
00:27:20,840 --> 00:27:24,200
Speaker 3: like strong gets stronger, and that's just the reality.

492
00:27:24,320 --> 00:27:27,680
Speaker 1: What do you see things gene. Are there companies that

493
00:27:27,760 --> 00:27:28,600
Speaker 1: could be left behind?

494
00:27:29,040 --> 00:27:32,320
Speaker 4: I think that most companies will have a benefit, but yes,

495
00:27:32,359 --> 00:27:35,520
Speaker 4: there'll be companies that will get left behind. They won't

496
00:27:35,560 --> 00:27:37,360
Speaker 4: be able to keep up. And I think that what

497
00:27:37,400 --> 00:27:40,359
Speaker 4: we've seen is that in the hardware world that is

498
00:27:40,400 --> 00:27:43,240
Speaker 4: where all the action is today. The software software companies,

499
00:27:43,280 --> 00:27:45,600
Speaker 4: the big software companies are basically flat. They're down a

500
00:27:45,600 --> 00:27:48,879
Speaker 4: few percent this year, which is remarkable compared to the

501
00:27:48,960 --> 00:27:52,280
Speaker 4: hardware which is up called average fifty percent. So I

502
00:27:52,280 --> 00:27:55,359
Speaker 4: think where the companies get left behind is this up

503
00:27:55,440 --> 00:27:57,720
Speaker 4: and coming class. And at deep Water we focus on

504
00:27:58,320 --> 00:28:00,720
Speaker 4: we have the benefit of doing public private And on

505
00:28:00,760 --> 00:28:04,159
Speaker 4: the private side there is these anointed AI companies some

506
00:28:04,240 --> 00:28:06,840
Speaker 4: of them. Some of them everyone's heard of open ai

507
00:28:06,880 --> 00:28:10,719
Speaker 4: and Xai, but there's other ones that people haven't heard of,

508
00:28:10,920 --> 00:28:13,520
Speaker 4: like Data Bricks and Andril. And I think that there

509
00:28:13,600 --> 00:28:16,359
Speaker 4: is going to be a class that's going to go

510
00:28:16,400 --> 00:28:19,840
Speaker 4: public in twenty five, twenty six, twenty seven that is

511
00:28:19,920 --> 00:28:23,280
Speaker 4: going to challenge some of the software companies that have

512
00:28:23,880 --> 00:28:26,359
Speaker 4: had great businesses for the last fifteen years, and so

513
00:28:26,440 --> 00:28:29,479
Speaker 4: I think I don't have these three companies are going

514
00:28:29,520 --> 00:28:31,240
Speaker 4: to be at risk. But I would just point out this.

515
00:28:31,359 --> 00:28:35,920
Speaker 4: I think that the private software opportunity around AI is

516
00:28:37,280 --> 00:28:40,200
Speaker 4: going to be headlines in twenty five, twenty six, and

517
00:28:40,240 --> 00:28:40,760
Speaker 4: twenty seven.

518
00:28:41,160 --> 00:28:44,760
Speaker 1: Speaking of headlines, when we have this kind of massive

519
00:28:44,920 --> 00:28:48,000
Speaker 1: run in the stocks and a lot of these companies

520
00:28:48,040 --> 00:28:50,480
Speaker 1: that we talk about day in and day out, there's

521
00:28:50,520 --> 00:28:53,560
Speaker 1: been a lot of regulatory scrutiny as well. I'm thinking

522
00:28:53,600 --> 00:28:56,280
Speaker 1: particularly about a lot of the action that's been happening

523
00:28:56,320 --> 00:29:00,120
Speaker 1: in the European Union when it comes to Apple now,

524
00:29:00,200 --> 00:29:05,640
Speaker 1: Meta platforms, DAN. Is that a potential risk, potential head

525
00:29:05,720 --> 00:29:11,240
Speaker 1: risk for some of these companies. The idea of regulatory scrutiny.

526
00:29:10,920 --> 00:29:14,400
Speaker 3: Look, I think right now, regulatory is in a minivan

527
00:29:14,880 --> 00:29:18,080
Speaker 3: going fifty five miles an hour in the right lane

528
00:29:18,240 --> 00:29:20,640
Speaker 3: and in the left lane. Is the technology in a

529
00:29:20,720 --> 00:29:25,360
Speaker 3: Bugatti going one hundred miles an hour. The point is regulatory.

530
00:29:25,960 --> 00:29:28,960
Speaker 3: I view it as more background though. Every look the

531
00:29:29,160 --> 00:29:35,120
Speaker 3: certainties when you wake up coffee, you're gonna get delayed

532
00:29:35,120 --> 00:29:39,440
Speaker 3: on some mass transportation train plane and the EU is

533
00:29:39,480 --> 00:29:43,280
Speaker 3: gonna find a big tech player. So the point is

534
00:29:43,600 --> 00:29:46,880
Speaker 3: this is I think the streets almost become immune and

535
00:29:46,960 --> 00:29:51,080
Speaker 3: I don't see that it spoils the AI party, which

536
00:29:51,160 --> 00:29:53,760
Speaker 3: I believe. It's still nine pm and it goes to

537
00:29:53,840 --> 00:29:59,040
Speaker 3: four am. Jane, do you think Europe just falls so

538
00:29:59,320 --> 00:30:03,480
Speaker 3: far behind on US, Easia other parts of the world

539
00:30:04,000 --> 00:30:08,720
Speaker 3: because of this regulatory.

540
00:30:08,200 --> 00:30:11,720
Speaker 4: I think that at the highest level. Yes, I think

541
00:30:11,720 --> 00:30:15,040
Speaker 4: that their restrictive policies are going to have an impact.

542
00:30:15,080 --> 00:30:17,400
Speaker 4: You need to be embracing these and so I do

543
00:30:17,440 --> 00:30:20,200
Speaker 4: think that there's risk what the EU is doing as

544
00:30:20,680 --> 00:30:25,880
Speaker 4: risks beyond what the regulators understand, and so my general

545
00:30:25,960 --> 00:30:29,080
Speaker 4: sense is that they need to make some changes. It's

546
00:30:29,120 --> 00:30:32,160
Speaker 4: not going to happen. I love your analogy about things

547
00:30:32,160 --> 00:30:34,760
Speaker 4: you can depend on in life. Yes, the EU finding

548
00:30:34,800 --> 00:30:37,280
Speaker 4: some going after some big tech company, and I would

549
00:30:37,280 --> 00:30:39,240
Speaker 4: just add one other piece just around this. It's just

550
00:30:39,280 --> 00:30:41,800
Speaker 4: a chess match. And the reason why, just to put

551
00:30:41,840 --> 00:30:44,720
Speaker 4: another point on what Dan said, the reason why investors

552
00:30:44,720 --> 00:30:48,320
Speaker 4: don't care is because they understand that these big tech

553
00:30:48,320 --> 00:30:51,520
Speaker 4: companies can find ways to get around any of the regulations,

554
00:30:51,520 --> 00:30:57,360
Speaker 4: effectively dampening what their potential penalties are. And so I'm

555
00:30:57,400 --> 00:31:00,280
Speaker 4: more confident that big tech can figure it out and

556
00:31:00,560 --> 00:31:01,760
Speaker 4: get around these hurdles.

557
00:31:02,160 --> 00:31:05,320
Speaker 1: Well, what should investors be worried about when it comes

558
00:31:05,320 --> 00:31:08,640
Speaker 1: to the growth that we've seen in AI companies?

559
00:31:08,720 --> 00:31:12,960
Speaker 4: Gene, Well, this is one of the bizarre parts of

560
00:31:13,000 --> 00:31:16,000
Speaker 4: this piece. And Dan and I were around during the

561
00:31:16,000 --> 00:31:20,440
Speaker 4: Internet bubble and the analogy. I'd say the thing that

562
00:31:21,160 --> 00:31:24,080
Speaker 4: when I get asked like what's most concerning, it's around

563
00:31:24,400 --> 00:31:26,440
Speaker 4: how it's going to impact how we think and how

564
00:31:26,440 --> 00:31:28,560
Speaker 4: we feel about each other. I talked about that earlier.

565
00:31:29,120 --> 00:31:34,880
Speaker 4: But from the standpoint of what's concerning to stop this,

566
00:31:36,040 --> 00:31:39,960
Speaker 4: I think the only things would be something around availability

567
00:31:39,960 --> 00:31:45,760
Speaker 4: of power and maybe something around Taiwan. But beyond that,

568
00:31:45,800 --> 00:31:49,360
Speaker 4: this is this rocket is going to take off. And

569
00:31:49,760 --> 00:31:54,840
Speaker 4: I always embrace like identifying what the real risk is,

570
00:31:54,880 --> 00:31:57,600
Speaker 4: and they're pretty distant this is going to happen.

571
00:31:58,240 --> 00:32:01,960
Speaker 1: We're speaking with Gene Monster man partner Deepwater Asset Management,

572
00:32:02,000 --> 00:32:06,720
Speaker 1: and Dan Ives, senior equity research analyst at web Bush Securities.

573
00:32:07,240 --> 00:32:09,560
Speaker 1: You're talking about it as a nine pm and a

574
00:32:09,640 --> 00:32:13,520
Speaker 1: four am party, Dan, but do you see any potential

575
00:32:13,600 --> 00:32:18,960
Speaker 1: risks to the AI run? Could we be driving these

576
00:32:19,000 --> 00:32:20,640
Speaker 1: companies up into an asset bubble.

577
00:32:21,160 --> 00:32:24,120
Speaker 3: I mean, I think there's a two year bull cycle.

578
00:32:24,600 --> 00:32:27,600
Speaker 3: I mean at points when we get towards three thirty

579
00:32:27,640 --> 00:32:31,880
Speaker 3: four am, there will be issues, especially for ones that

580
00:32:31,960 --> 00:32:36,360
Speaker 3: don't actually execute, but I see it it's an auto bond.

581
00:32:36,880 --> 00:32:40,480
Speaker 3: We'll have some issues with quarters and air pockets and

582
00:32:40,520 --> 00:32:43,760
Speaker 3: worries and bears that have been negative. Untech for last

583
00:32:43,880 --> 00:32:46,680
Speaker 3: you know, since two thousand and nine come out again

584
00:32:46,800 --> 00:32:49,760
Speaker 3: saying that this is a bubble. The reality is it's

585
00:32:49,760 --> 00:32:53,719
Speaker 3: a Fourth Industrial Revolution plan out and some look, some

586
00:32:53,800 --> 00:32:56,000
Speaker 3: are going to look at this party from the outside

587
00:32:56,600 --> 00:32:57,960
Speaker 3: and they'll be like, you know what, I'm just gonna

588
00:32:58,000 --> 00:33:01,800
Speaker 3: eat ice cream in my room. Guess what, Let's meet

589
00:33:01,840 --> 00:33:04,920
Speaker 3: at six am for breakfast. I'll go to the party,

590
00:33:05,120 --> 00:33:07,520
Speaker 3: they go, and who had the better night? And the

591
00:33:07,560 --> 00:33:09,880
Speaker 3: point is, I think as it all plays out, that's it.

592
00:33:09,960 --> 00:33:13,320
Speaker 3: This is a tech bull mark. You could deny it.

593
00:33:13,440 --> 00:33:16,880
Speaker 3: The multiplier impacts. Just starting with Godfather of Ai Jensen

594
00:33:16,920 --> 00:33:17,960
Speaker 3: a video.

595
00:33:18,280 --> 00:33:20,480
Speaker 1: Just to carry over the analogy. What's the risk of

596
00:33:20,480 --> 00:33:21,680
Speaker 1: a six am hangover?

597
00:33:22,360 --> 00:33:25,120
Speaker 3: First of all, there's after parties at five and six am,

598
00:33:25,480 --> 00:33:29,040
Speaker 3: and then even in those you'll have some that fall

599
00:33:29,080 --> 00:33:31,280
Speaker 3: by the wayside. But if you focus on the winners

600
00:33:31,320 --> 00:33:34,960
Speaker 3: and keep the thesis again, we're gonna be talking about

601
00:33:35,080 --> 00:33:40,360
Speaker 3: four trillion, five trillion dollar mark aps NASDAK twenty twenty two,

602
00:33:40,720 --> 00:33:45,560
Speaker 3: twenty five K over the next three four five years.

603
00:33:45,600 --> 00:33:48,640
Speaker 1: In my opinion, is that something that you agree with?

604
00:33:48,720 --> 00:33:52,880
Speaker 4: Gene, Yes, I mean I like Dan's party analogies much

605
00:33:52,920 --> 00:33:55,600
Speaker 4: more of my baseball analogies. But I'm at the third

606
00:33:55,640 --> 00:33:58,560
Speaker 4: inning of this, and we think we're in the early

607
00:33:58,600 --> 00:34:01,520
Speaker 4: stages of a three to five year market, and I

608
00:34:01,600 --> 00:34:04,000
Speaker 4: don't I wouldn't. Don't worry about the after don't worry

609
00:34:04,000 --> 00:34:06,480
Speaker 4: about the hangover at this point, I think you just

610
00:34:06,640 --> 00:34:10,440
Speaker 4: embrace that this is as the substance will exceed the

611
00:34:10,520 --> 00:34:13,799
Speaker 4: hype and we've got some great years ahead of us

612
00:34:13,840 --> 00:34:14,799
Speaker 4: from the market. Now.

613
00:34:14,840 --> 00:34:17,560
Speaker 1: Obviously we've been talking a lot about the Magnificent seven

614
00:34:17,600 --> 00:34:22,439
Speaker 1: stocks and VideA leading the way in lots of aspects.

615
00:34:22,480 --> 00:34:25,719
Speaker 1: But as we close out this our guys, let's talk

616
00:34:25,719 --> 00:34:29,320
Speaker 1: a little bit about some of the names that maybe

617
00:34:29,320 --> 00:34:34,320
Speaker 1: you'd advise investors to steer clear of entirely. Start with Eugene.

618
00:34:36,160 --> 00:34:38,480
Speaker 4: Well, this is one that I've had talked about in

619
00:34:38,520 --> 00:34:40,880
Speaker 4: the past. I've been wrong I'm going to stick with it.

620
00:34:40,880 --> 00:34:46,319
Speaker 4: It's Netflix, it's a bigger company. It's one that has

621
00:34:46,600 --> 00:34:48,760
Speaker 4: a benefit to AI, but it's not like a true

622
00:34:48,800 --> 00:34:51,480
Speaker 4: AI company. It's content, and I think that there's a

623
00:34:51,560 --> 00:34:54,200
Speaker 4: shift going on in content to the creator economy. Let's

624
00:34:54,239 --> 00:34:56,920
Speaker 4: think of it as what's happened in YouTube and TikTok

625
00:34:57,360 --> 00:35:02,400
Speaker 4: multiplied by many times. And I think Hollywood's gonna get disrupted.

626
00:35:02,440 --> 00:35:04,839
Speaker 4: I think companies like Netflix are gonna get disrupted, and

627
00:35:05,640 --> 00:35:08,560
Speaker 4: I think that it's just not that exciting of a

628
00:35:08,600 --> 00:35:10,360
Speaker 4: story on top of it interesting.

629
00:35:11,200 --> 00:35:15,040
Speaker 1: What's your view on where the entertainment industry is going down?

630
00:35:15,800 --> 00:35:19,520
Speaker 3: I mean, look, I think you could play the scary

631
00:35:19,719 --> 00:35:21,960
Speaker 3: sort of angle we saw with some of the Hollywood

632
00:35:22,000 --> 00:35:24,560
Speaker 3: strikes in terms of how it's going to impact negatively.

633
00:35:25,080 --> 00:35:28,080
Speaker 3: I actually think it's going to create sub industries and

634
00:35:28,160 --> 00:35:32,680
Speaker 3: companies that are massively successful streaming. There is a revolution

635
00:35:32,880 --> 00:35:36,960
Speaker 3: going on. It's content driven and you're gonna see more

636
00:35:37,000 --> 00:35:41,919
Speaker 3: and more entertainment companies. Applications gonna be built on top

637
00:35:41,920 --> 00:35:45,120
Speaker 3: of watching sports, watching entertainment. You're gonna be able to

638
00:35:45,160 --> 00:35:48,680
Speaker 3: go into a movie, whether it's a vision pro or

639
00:35:48,719 --> 00:35:51,920
Speaker 3: others that you'll be bringing in the point is this

640
00:35:52,880 --> 00:35:55,480
Speaker 3: things are gonna be happening over the coming years that

641
00:35:55,600 --> 00:35:58,040
Speaker 3: you never would have imagined today, and there's gonna be

642
00:35:58,080 --> 00:36:01,600
Speaker 3: winners from that and losers. And I think that's something

643
00:36:01,680 --> 00:36:04,440
Speaker 3: as it all plays out. That's why you listen to

644
00:36:04,520 --> 00:36:08,800
Speaker 3: people like Gene, because they don't get nerve on quarters.

645
00:36:08,840 --> 00:36:11,840
Speaker 3: They don't all of a sudden like so many others

646
00:36:12,480 --> 00:36:15,200
Speaker 3: just follow the herd and go negative the farest through

647
00:36:15,239 --> 00:36:18,959
Speaker 3: the trees. That's why if Gene was a pilot, I'd

648
00:36:18,960 --> 00:36:22,520
Speaker 3: be I'd be in three a drinking cabernet. I feel

649
00:36:22,520 --> 00:36:24,880
Speaker 3: I'm pretty comfortable watching Netflix over.

650
00:36:24,760 --> 00:36:28,959
Speaker 1: There in first class. What about winners, dan Ives, what

651
00:36:28,960 --> 00:36:31,040
Speaker 1: what are your biggest names that you're looking at to

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00:36:31,239 --> 00:36:33,439
Speaker 1: really do well in the long term.

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00:36:33,520 --> 00:36:36,440
Speaker 3: I think the messy of AI, Pounteer front and center.

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00:36:36,520 --> 00:36:40,879
Speaker 3: I think names like service now Oracle with the renaissance

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00:36:40,920 --> 00:36:45,799
Speaker 3: of growth. I look at names like Mango dB, you know,

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00:36:45,840 --> 00:36:48,560
Speaker 3: and then of course Microsoft being one of our top picks.

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00:36:48,600 --> 00:36:50,839
Speaker 3: I think what's gonna happen is in software and even

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00:36:50,920 --> 00:36:54,399
Speaker 3: cybersecurity names that CrowdStrike, z scal or powle out. Though

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00:36:54,840 --> 00:36:57,399
Speaker 3: there's gonna be a massive talent in terms of these

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00:36:57,480 --> 00:37:02,280
Speaker 3: AI driven workoods to Batanga ten from send me to software.

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00:37:03,200 --> 00:37:07,319
Speaker 1: Of course, we know your coverage of Apple and some

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00:37:07,360 --> 00:37:09,880
Speaker 1: of the other big cap tech names, Geane, what are

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00:37:09,920 --> 00:37:13,720
Speaker 1: some of your biggest winners as we think farther ahead

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Speaker 1: into where we could be in this tech cycle.

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00:37:17,360 --> 00:37:20,000
Speaker 4: Apple is going to surprise people the next few years.

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00:37:20,239 --> 00:37:24,399
Speaker 4: I think Tesla is going to surprise people around these

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00:37:24,480 --> 00:37:26,200
Speaker 4: variant vehicles that they're going to come up with. And

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00:37:26,239 --> 00:37:28,440
Speaker 4: I think there's going to be some legs to Optimus

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00:37:29,040 --> 00:37:31,600
Speaker 4: on the what else. As I mentioned spent a lot

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00:37:31,640 --> 00:37:33,480
Speaker 4: of time on the private side. I think companies like

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00:37:33,640 --> 00:37:37,920
Speaker 4: Xai are going to be one of the anointed foundation models.

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00:37:38,040 --> 00:37:41,880
Speaker 4: Data Bricks, I think is another company I mentioned Andrew before.

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00:37:41,960 --> 00:37:44,759
Speaker 4: This is kind of the future of defense tech. And well,

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00:37:44,800 --> 00:37:48,560
Speaker 4: those three are difficult to invest in today, they soon

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00:37:48,840 --> 00:37:50,680
Speaker 4: in a 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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Speaker 1: term view in an hour long roundtable discussion on this

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00:37:58,640 --> 00:38:01,880
Speaker 1: massive bull run that we can continue to see in

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

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Speaker 1: with us. Web Bush Security Senior Equity research Channalyst Dan

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00:38:07,800 --> 00:38:12,720
Speaker 1: Ives along with Gene Munster, managing partner at Deepwater Asset Management,

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Speaker 1: spending the entire hour with us on this special edition

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Speaker 1: of Bloomberg Daybreak. We want to thank you as well

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Speaker 1: for taking time out from your Independence Day holiday to

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Speaker 1: get in on this discussion. Hope you have a very

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Speaker 1: happy and safe fourth of July. I'm Nathan Hager inviting

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Speaker 1: you to stay with us. The day's top stories and

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Speaker 1: global business headlines are coming up right now