Transcript:
Caroline Woods: So let’s talk. You say not all companies are created equal in the AI space. So let’s talk about which ones are poised to continue to be long term gainers and then which ones are overhyped at this point. So start with the names that you’re still bullish on?
Daniel Newman: And you heard a couple of them just now. But we did the future may 15th. And this may be really interesting to the Street’s audience is we looked at the 15 companies that are not the mag 7 because everybody kind of knows the mag seven, the metas, Microsoft Google’s. We like all of them. Tesla is probably the one that I continue to feel a little uncertain about, but I think long term will be very interesting. But we really love Broadcom. We do believe that custom chip game is going to be real. We think it’s going to be significant about $100 billion plus in the next five years. TSMC although I continue to tell the story that Intel needs to succeed, TSMC is the answer there. The bottleneck. Everything that happens happens through TSMC, one of the ones that everybody kind of thinks is in a bubble that we don’t is Palantir. They have been one of the winners of this kind of next generation of software, the company that’s actually utilizing AI in the market, not just building the rails and the infrastructure. So we like all those companies, but we also maybe in a more interesting we like cyber companies, a few very specifically, we think CrowdStrike, Palo Alto are going to be very significant beneficiaries where we don’t like or some of the things we’ve been more nervous about has been the enterprise software companies. So there’s a number of companies that are kind of in ECRM and ERP. We look at those companies and we’re really trying to figure out Caroline, and we haven’t definitively said this one will win and this one won’t. But we’re looking at all the software as a service companies, that whole bucket that’s been sold hard. You’re seeing companies like Salesforce have been sold hard. You’ve seen companies like, you know, MongoDB, although they came back after a strong earnings because we like the data layer. But can OpenAI. This is a great question. Go back to OpenAI is can OpenAI build something that just becomes almost a prompt based abstraction where you’re like, I want to see my sales, I want to see the project data. And it’s starting to look like with an OpenAI and a cursor. You probably heard about cursor or some of these kind of Claude codes off the shelf by Anthropic. You can build anything now. And so Satya Nadella said this a while ago. He said basically software is just these crud databases with logic. Enterprise software. So even him who has a huge business in enterprise software has to answer. The question is, does that business sustain for us or will generative AI disrupt it. And that’s a little less clear. So we’re still a little nervous about that whole bucket.
Caroline Woods: OK Yeah I noticed that you took Adobe, Qualcomm, Dell and Cisco off of your future AI 15 list. Any other names that you think are just overhyped at this point?
Daniel Newman: I think some of the. And so I’m going to say this with a bit of caution. I think some of the plays, like these mining companies that everybody loves have had incredible runs. Some of them are up like 1,000% and I’m long. Two of them, Cypher and Irene. I do think that there’s some proving still left to do. These are companies that took their Bitcoin mining type operations and have turned them into AI and energy. Long term, I love them. But when something’s run 500% 1,000% in a very short period of time, I do think consolidation is normal. I almost think it’s healthy. And I think some people just kind of there’s become this is where the Frobenius, the everything to the moon, every single day. I think that if you’re an investor, you have to say, where are the fundamentals and how much do I want to play the momentum trade. And do I want to take some risks or do I maybe want to take some profits. So I basically look at all these things that have had these just monumental runs, and I kind of say a breath could be warranted. And by the way, that doesn’t mean there’s a bubble going to burst. But it’s healthy. Markets are efficient. Consolidation is normal.
