Thank you so much for joining us for this special edition of Bloomberg Daybreak. US markets are closed for the Independence Day holiday. I'm Nathan Hager coming up this hour. They correctly predicted the artificial intelligence boom that led to record highs for several tech companies this year. Now they're back to assess whether this high tech bull has more room to run or whether it's headed into bubble territory.
Joining us for the entire hour our Gene Munster, managing partner at Deepwater Asset Management and web Bush Security, senior equity research Channalyist Dan Ives. Gentlemen, thanks once again for joining us for this special roundtable discussion on all things tech. And Dan, I want to start with you because you really have been out front on the bulcase for AI over the last well really a couple of years now. So here's what you had to tell us around this time last fourth of July.
My opinion, it's a fourth in dust show revolution that's playing out in front of our eyes.
This is the start of a new tech bull market.
Which is why we think second half of the year at tech could be up fifteen, potentially twenty percent in a much broader rally because of what's happening from a growth perspective. I think it's AI is tip of the iceberg.
And since then, the magnificent seven stocks tracked by Bloomberg are up fifty five zero percent on the total return it dan, can these make a cap tech names keep up that kind of momentum.
Look, it's nine pm. Still in this party, this AI party that I believe goes to four AM. I mean this is the start of a two year tech bull cycle because it's something where it's the multiplier for every dollar spent on in vidio chip, there's an eight to ten multiplier across software, across infrastructure, across the rest of the tech. That's why this is a nineteen moment, not a ninety ninety nine movement. Get out the popcorn. We should detect will market continues.
So let's bring you in on this gene. Here's what you had to tell us about big text potential this time last year.
There's going to be some ebbs and flows in terms of the stocks in the near term, but I think that it will ultimately meet, exceed, will comfortably exceed all of the hype. And the hype is just intense. I mean, this universal optimism around it seems hard to believe, but I think it is. There is substance behind it.
One year later, Gene is the substance still backing up the hype.
It is and that's the part that Dan and I keep a close eye on as every quarter and in the middle of the quarters, tracking how these companies are doing. Is it ultimately exceeding meeting disappointing to what those bars are and it's so far it's just been exceeding really across the board in vidious numbers. Of course, is the bell weather. Dan talks about the chips piece, that being the front end of it and that multiplier effect, But that's where I'm focused heavily on, is just what's going
on the hardware side. Micron had exceeded estimates guided inline for the for the September core for their August quarter, which in AI world that may be viewed as a slight disappointment, but it did include an acceleration in revenue growth, so it's going from eighty two to ninety percent. So, Nathan, this is all intact and my view that the substance will exceed the hype continues to be confirmed as we progress.
Well let's talk a little bit more about in Nvidia, because obviously there's been so much attention on the AI chip. Darling Dan, You've called Jensen Wong the CEO, the godfather of AI. But godfathers often have targets on their backs. I mean, how big a target is in Vidia right now when it comes to the overall chip space.
Look, they're a target, but it's their world and everyone else's pay rent in terms of where we are. I mean, they're chips, they're GPUs and we've seen this across the you know, across the board in our trips to Asia. It's the new oil, the new gold, and at the top of the mountain it's the godfather of AI, Jensen Nvidia. In that mount rushmore of AI, along with the Della and others that want to join. But this is they're miles ahead of the competition. It'll EBB and flow a
year from now. I think we're looking at three four trillion dollars markaps Apple, Microsoft and Nvidia, And as Jeans talked about throughout the year, it's far through the trees. You don't get too caught up with sometimes the gyrations week, tweet quarter quarter, it's where this is all going well.
We have seen gyrations just in recent weeks since the ten for one stock split for Nvidia. Gene, where do you see in Nvidia going at this point?
I mean that's exact exactly that this is just gyrations, and it's I believe it's going higher. I think it
could go materially higher. And it comes to a basic question that investors have to ask themselves, and it's do you believe if you believe that we're in currently a genitive AI inspired world that hasn't really taken impact on most of our lives, but a generitive AI inspired world, and if you believe that eventually that leads to artificial general intelligence, which is a light year ahead of genitive AI.
And if you believe that superintelligence is somewhere on the horizon five to ten, twenty years on the horizon, if you believe that that is the future, which I hold those, then in Vidia is going a lot higher in Vidia. If AI works, in Vidia has to work.
Speaking with Gene Munster, the managing partner at Deepwater Asset Management, and Dan Ives, senior equity research analyst at web Bush Security joining us in studio Genus joining us via zoom, Dan, Where do you see the trajectory for in video? I mean, you've talked a lot about how the run seems like it has legs. What turns in video from the kind of growth that we've seen over the last several months to something more stability.
I mean, the use cases are just starting, so when you look at numbers, the street is still behind where the demand and where numbers actually go. So we could go through intra court to people saying in type and stock sell off, but it all comes down to demand and we are still in from a baseball perspective, we're in the top of the second, bottom of the first in terms of where this is all heading, and they're the only show in town in terms of those chips.
That's why I believe this is one where they continued to defy show numbers that I think are jaw droppers, and now the second, third, fourth derivatives hit across the rest at tech.
Well, when it comes to that demand piece, Gene, I mean, can in Nvidia meet the kind of demand that we've seen from a lot of its enterprise customers. Can the suppliers that Nvidia relies on meet that kind of demand?
The best thing The answer to simple answer is no, because everything that Dan's talking about that this early innings and we're just starting to build this infrastructure. Despite the breathtaking growth that Nvidia has had, we're just still early and we're going to see a whole new class. It has been the hyper scalers, We're going to see a
whole new class of enterprisers. There's be industrial AI, there'll be sovereign aim from countries, and so they will start to be buying these chips, and ultimately I think it will be very difficult for TSM to keep up with in Nvidia's demand. It's a great thing for investors because of course, when they have good numbers and they say we can't keep up, that allows investors to kind of
continue to maintain a lot of their optimism. And so I think it's actually okay that it'll be fine for the stocks that and video can't keep up with this demand. And I had a question for Dan, and you know, when I think about this kind of evolution and what's going on now is generitive AI, and then how would you I describe there's a light year gap between generitive AI and general intelligence, because this is where you and
I we're focused. The reason why we're not worried about quarters is worth thinking two three years down the road. And how do you think about that piece of it, the general intelligence piece of it, relative or just in terms of the applications that could present themselves and the opportunity for wealth creation around.
Yeah, it's a great question. And look, Gene, I think from everything, all the work we've done around the world, we think about sixty two percent of data that's never been able to be cracked or used by enterprises and ultimately by consumers is now going to get unlocked and you're going to have on the consumer side hundreds of apps while them through Apple. That is how most consumers are going to interact with AI in a way that they couldn't even imagine today. Enterprise is the same thing.
As much as it's scary sci fi twenty first century, I think the reality is is that enterprises are finding massive use cases ROI, and that's why we believe there's a lot of these companies ten hours in earnings could be fourteen to fifteen.
In terms of the advances that we could see. It raises a lot of questions when you talk about a leap from the kind of large language models that we're seeing now to this general intelligence. That raises the questions about whether artificial intelligence is advancing too fast for companies and people to keep up with the moral questions as well.
I wonder how Gene you think about some of those questions, as a lot of these big tech companies do try to get to some of these massive leaps that used to be science fiction, but do seem like they're becoming that much closer to science fact.
Yeah, the numbers are supporting it, just in terms of the breath taking expansion and intelligence of these models. Just to put some perspective around it, Open AI GPT three had about one hundred and twenty billion parameters. They haven't given the numbers for four to oh, but it's estimated
to be about a trillion. And that's kind of a simple way to think about how smart the model is is to look at the number of parameters and so think of this as it's over a period of a year, it's getting going almost a ten x improvement and intelligence. So these are kind of growth curves that are that
we haven't seen. Makes the Internet growth look JV and I think when it comes to the pauses, Dan and I have talked about the benefits, the benefits for what companies to continue to build into this, and I think it's I appreciate your point about how can this be? You know, what are the negative sides? And I would just my view is this. You can debate a lot of angles around how can this be negative or positive?
I think the one piece that cannot be debated is it's going to get harder for people to distinguish what is truth and fiction and all the ramifications around that. I think you can You're going to see more tribalism. I think people just because you're going to get progressively easier to get fed what you want to hear. And so I think that that side's the most actually concerning part of me. And just think about like global stability is just how AI is going to be used to
influence how people think. I'm not worried about robots shooting people up or anything like that. I think it's this is just about how AI influences how we think.
Now.
I want to get deep into those questions as we get deeper into the program. But Dan, just to close out this segment, I mean, we've seen these massive multiples for in Nvidia and other companies like it in terms of you know, the levels the valuations that they're trading at. Is that a new normal, these kinds of massive priced earnings ratios that we're seeing for companies like in Vidia.
I mean, that's been what we've talked about. It's a new normal. I think how many have missed this. They go back to their historical DCF spreadsheets while they're in their hibernation moons bears. It's a new error.
And we'll continue this roundtable discussion with Dan Ives of Webbush and Gene Munster of deep Water Asset. Is this special fourth of July edition of Bloomberg Daybreak continues. It's twenty minutes past the hour. I'm Nathan Hager, and this is Bloomberg. Welcome back to this special edition of Bloomberg Daybreak. I'm Nathan Hager. US markets are closed for the fourth of July, but we're breaking out the fireworks for a
high tech power hour. We're back with Dan Ives, senior equity research analystic wet Bush Securities, and deep Water Asset Management's managing partner Gene Munster, and guys, we've been talking a lot about Nvidia for obvious reasons. I want to get into some other names. Though with exposure to the AI space, there has been a lot of talk about Tesla as a potential AI play. Dan, I know you've been bullish on this stock for quite some time. How
important is artificial intelligence going to be? Though, when it comes to Tesla's longer term growth.
It's the wingepin to the bull case because I've never viewed Tesla as an auto company. As a car company. I viewed a disruptive tech and when we think about autonomous and FSD, even when some of the things are happening in China the next five, eight, ten years, the biggest bowl case for Tesla is I could argue it's probably the most undervalued AI name in the market relative to use cases. That's what we're focused on. It's very easy to focus on. Okay, they missed deliveries by x amount,
that's far as through the trees. We were focused on AI, FSD, autonomous and I know gene Is does a ton of work here, a ton of great work in terms of autonomous FSD, and I think this to me is a new It's really going to be in transformation that we see in the auto industry.
Well, gene is that central to how you see Tesla right now. I mean there have been a lot of promises over the years from Elon Musk about how the data that Tesla's been able to collect from drivers over the years is going to feed into artificial intelligence potentially. Do you see that paying off anytime soon?
I do. I think it's going to pay off faster than what people expect. I think we're going to have a GPT moment when it comes to autonomy and you look at the broader auto space, this has kind of been a surprising year where there's been more investment. Late last year we saw companies pairing back, some of the big auto pairing back in their investment and autonomy. We've seen more increases this year from some of the traditional ones.
But that said, Tesla still is far and above making the most investments in this and really, as Dan mentioned, this is really the central opportunity to invest in Tesla is around what they're going to do with autonomy and what I think is beyond So, Nathan, I think it's going to come earlier than what we think. My prediction is that if you're probably seven eight years old today, you're never going to have the need to drive a car,
So I think within the next five years. I think it could be as early as two or three years. The legislation piece is going to be the big one holding this up. And then one other piece to the Tesla AI story. We're gonna hear more about it obviously on August eighth when they show their three new vehicles, and FSD is going to be a big part of that lineup. But one other piece is related to optimists.
And it's almost like, I don't know how you feel about this, Dan, about when you talk about optimists with investors, it is if there's a sense like you almost lose credibility to say that it has real potential because it just seems so far far down the road. If something good happens in Optimists, the stock doesn't move. But I think that's another big piece. I love your take, Dan, just on like, is optimists something that an investor should care about today? Yeah?
Exactly Jane's point. If I bring that up in an investor meeting, it's like the laughter just starts, Well, how could you even talk about that? Yeah?
I mean, because a lot of the thing is that you know, there have been a lot of promises over the years for Elon Musk that autonomous is going to pay off, There's going to be a ROBOTAXI. Obviously there's the August eighth uh unveil that we're expecting, but there's been a lot of expectation over the years and not as much payoff arguably that many investors might be looking for.
But I would I think agree but also disagree because the point is, there was a point where if you said Tesla's going to be producing a million units per year exactly, and gen Gene remembers, they'd be like, wow, yeah, you must drink a lot of rose or had a good Friday night. And now we're coast to two million, and look at profitability when and today how much free cash are they general relative to when they were losing money.
Now you could argue that maybe I'm looking at the trees for the forest here. But you know, there has been some reporting from Bloomberg Green in recent weeks that Tesla looks like it's on track to lose you know something that's been a bragging point for several years, it's electric vehicle market majority in the US. Gene just to that point about Tesla as its you know, base business of electric vehicle manufacture, how much is it at risk of letting the competition eat into its market share?
I think competitions in a much worse spot than people understand right now. And I mentioned some of the step forwards that some of these traditionalels have made around FSD in the past six months, But if you look at collectively what they've done over the past year, absent what Volkswagen's recent investment in Rivian, they've taken five steps back. They want to protect, largely protect their gas business, and making an electric car is different than making a gas car.
This is the difference between making a lawnmower and a supercomputer. And I think that what you will see is, even though there's been some improvements in market share here and there, their ability to scale at a profitable rate is going to be challenging, and ultimately I think it's a catch twenty two. I think Tesla is going to end up with twenty twenty five percent market share of cars in the US. It's down from where it's at today, but that is unprecedented kind of market share. One in four
cars to be Tesla. But I think the reason why is it will be the best car for the best price given the features, and I don't think other car companies are going to be able to largely keep up.
You're talking about total market share, not just EV's.
Total market share.
Correct.
I think that is I'm talking ten years down the road here, but I think that that is something again because they can scale at a profit way. The consumer brand matters in cars a lot, but ultimately they want the best value.
Speaking with Gene Munster of Deepwater Asset Management and Dan Ives of web Bush Securities, and just to wrap things up a little bit on Tesla, Dan, do you feel like the company is back on track with Elon Musk after all the rigmarole around x formerly Twitter, the pay package, the reincorporation, all those questions that win Elon Musk's way, Is Elon Musk still the guy for this company?
I mean, look, Tesla is Musk. Musk is Tesla. So that's why went everything that in terms of that twilight doing that we saw in Delaware with the compackage, even though shareholders approved it. The point is that we're not talking about Tesla being a trillion two trillion dollar markap without Musk. I mean, you're talking about what I'd argue Meyer and d Albert Einstein of course has flaws, has issues. We all know it in terms of what comes with musk.
But when you look at autonomous, you look at when you actually go through the factories, when you go through Austin, you go through free Mont, you're in Nevada and you see the actual battery factor. You go to China, you have a different perspective what they've been able to do. And then you look at all these other EV players that have fallen. It's a graveyard. Because they talk a game, big game, but as Gene said perfectly, the reality is
so much more difficult. And I think even in Detroit they figured it out with Mary and what Farley's seen as well, how hard is to produce evs profitably.
I want to shift to another company that both of you follow very closely, that is Apple, And just to stick with the RT official intelligence theme as well, we've got Apple Intelligence rolled out at the latest Worldwide Developers Conference. Gene, I know you follow this company very closely. Is Apple back on track when it comes to AI?
They are? And this is just going to be the sleeper AI story of the next three to five years, and the AI piece isn't going to start impacting, probably start until the December quarter. The streets having some nice improvements, going from three four or five percent year VIR revenue growth in the next few quarters seven percent next year. I think that number is going to be closer to ten percent plus revenue growth for twenty twenty for calendar
twenty five. So I think that effectively. And Dan, I've seen your work on this. I think you've been just spot on just as this is the best consumer facing AI company. I think that's the language that you've used. I agree with that. I think that when you think about AI, a lot of the attention goes to Nvidia kind of on the build side. When it comes to consumer AI, Apple is best positioned, I think, to bring hardware, software services. It's their taglines. But it's true too, nobody
brings it better together better. What that means is the average person who today has little exposure to AI will have a lot of exposure as this gets weaved into the fabric of Apple's products, and that's a revenue opportunity for opp.
And I'd say that was a drop the mic type what Gene just said. And I know Gene talks about like twenty percent, right, twenty percent of the world, like consumers will interact with AI through Apple through an Apple device. And it's so true because when you look at what they did with WWDC if the initial reaction, remember most in the street, they can't see forest through trees, right, they've missed Apple from five hundred billion to three trillion,
they'll miss it three to four trillion. Oh, I didn't see anything big. Yet you have savants like Gene and then I I file in terms of like the way I view to be in there. I'm like, this is it?
This?
Because every consumer AI is now goes through Cooper, Tino and Apple. And guess what that means. That's gonna be a whole other renaissance scroing term the AI driven upgrade cycle on iPhone but also services those applications, hundreds and hundreds that are gonna be built. That's for consumers. So do you see how long?
How long does it take for as soon as they turn on Apple Intelligence and these new phones come out, how long does it take for the kind of the word of mouth like people handing their phones to someone else and showing the generative features on it? How long do you think it takes to start to accelerate the iPhone growth?
Well, I think it's gonna be quick. I think I think it's actually gonna be within the cycle, even going into holidays season. But neither i'd say what Gene's talking about. Let's say me and Gene are at dinner in the six to one to two Okay, Okay, We're sitting there and Gene show me his new iPhone sixteen is all these and I'm like, oh, how do I? Oh no, I can't do that if I have an iPhone fourteen or an iPhone thirteen. So this is going to catalyze the beginning of an AI driven supercycle.
How does that play out into some of Apple's smartphone competitors like Samsung?
Apple plays chess, they play checkers. Because it goes back to two point two billion iOS devices one point five billion iPhones. I mean that's the difference between Apple and everyone else. And I pose a question in Gene, Gene, what's your view of when everyone goes to you or the Apple they're late to the game, Like they're late on AI. They've missed it. So what would you say to that.
AI hasn't even started? How can you be late to something that hasn't started and when I and I'll define that is that typical person has heard probably heard about AI, but actually doesn't use it. The reason why open Ai is giving away this incredibly intelligent model by the world's smartest foundation model for Apple is because the power of their distribution and that piece is just that is a tsunami that's getting unleashed that Apple has just been waiting
to turn onto the market. And so my sense is that time is in Apple's favor. They waited, they put together the right lineup for AI, and now they're going to get a chance for everyday people to experience it.
And we're going to get more into where we are in this artificial intelligence cycle. As we wrap up this hour long big Tech roundtable with Gene Monster of Deepwater Asset Management and Dan Ives of web Bush Securities. As the special edition of Bloomberg Daybreak continues, it's thirty seven minutes past the hour. I'm Nathan Hager, and this is Bloomberund Welcome back to this special edition of Blueberg Daybreak.
I'm Nathan Hagar. US markets are closed for the fourth of July holiday, and it's time to close out this special high tech roundtable. We have been spending the entire hour with Gene Munster, managing partner at Deepwater Asset Management, and Wedbush Security senior equity research analyst Dan Ives and Dan I want to pick up on a point that Gene made at the end of the last segment that you know, we're still at the start of this artificial intelligence boom and how can companies be left behind if
we're just at the start of it. Do you see companies that could be left behind in the AIM?
I think many. I mean I've met with many companies They'll say AI thirty times in an hour, and I leave the I leave the meeting being like, oh, it's gonna be a rough, rude. So the point is like, it's about the technology, the software engineers, the install base, your sales execution. I mean, look, if someone told you Dell was an AI six months ago, you say, no way,
what could oracle? So the stronger are going to get stronger when the losers are going to be a glad The niche players squeezed out of sales cycles don't have the scale lead to the game lose. Software engineers. AI engineers are rare right in terms of where we are today. So I do think this is going to be one like strong gets stronger, and that's just the reality.
What do you see things gene. Are there companies that could be left behind?
I think that most companies will have a benefit, but yes, there'll be companies that will get left behind. They won't be able to keep up. And I think that what we've seen is that in the hardware world that is where all the action is today. The software software companies, the big software companies are basically flat. They're down a few percent this year, which is remarkable compared to the
hardware which is up called average fifty percent. So I think where the companies get left behind is this up and coming class. And at deep Water we focus on we have the benefit of doing public private And on the private side there is these anointed AI companies some of them. Some of them everyone's heard of open ai and Xai, but there's other ones that people haven't heard of,
like Data Bricks and Andril. And I think that there is going to be a class that's going to go public in twenty five, twenty six, twenty seven that is going to challenge some of the software companies that have had great businesses for the last fifteen years, and so I think I don't have these three companies are going to be at risk. But I would just point out this. I think that the private software opportunity around AI is going to be headlines in twenty five, twenty six, and twenty seven.
Speaking of headlines, when we have this kind of massive run in the stocks and a lot of these companies that we talk about day in and day out, there's been a lot of regulatory scrutiny as well. I'm thinking particularly about a lot of the action that's been happening in the European Union when it comes to Apple now, Meta platforms, DAN. Is that a potential risk, potential head risk for some of these companies. The idea of regulatory scrutiny.
Look, I think right now, regulatory is in a minivan going fifty five miles an hour in the right lane and in the left lane. Is the technology in a Bugatti going one hundred miles an hour. The point is regulatory. I view it as more background though. Every look the certainties when you wake up coffee, you're gonna get delayed on some mass transportation train plane and the EU is
gonna find a big tech player. So the point is this is I think the streets almost become immune and I don't see that it spoils the AI party, which I believe. It's still nine pm and it goes to four am. Jane, do you think Europe just falls so far behind on US, Easia other parts of the world because of this regulatory.
I think that at the highest level. Yes, I think that their restrictive policies are going to have an impact. You need to be embracing these and so I do think that there's risk what the EU is doing as risks beyond what the regulators understand, and so my general sense is that they need to make some changes. It's not going to happen. I love your analogy about things you can depend on in life. Yes, the EU finding some going after some big tech company, and I would
just add one other piece just around this. It's just a chess match. And the reason why, just to put another point on what Dan said, the reason why investors don't care is because they understand that these big tech companies can find ways to get around any of the regulations, effectively dampening what their potential penalties are. And so I'm more confident that big tech can figure it out and get around these hurdles.
Well, what should investors be worried about when it comes to the growth that we've seen in AI companies?
Gene, Well, this is one of the bizarre parts of this piece. And Dan and I were around during the Internet bubble and the analogy. I'd say the thing that when I get asked like what's most concerning, it's around how it's going to impact how we think and how we feel about each other. I talked about that earlier. But from the standpoint of what's concerning to stop this, I think the only things would be something around availability of power and maybe something around Taiwan. But beyond that,
this is this rocket is going to take off. And I always embrace like identifying what the real risk is, and they're pretty distant this is going to happen.
We're speaking with Gene Monster man partner Deepwater Asset Management, and Dan Ives, senior equity research analyst at web Bush Securities. You're talking about it as a nine pm and a four am party, Dan, but do you see any potential risks to the AI run? Could we be driving these companies up into an asset bubble.
I mean, I think there's a two year bull cycle. I mean at points when we get towards three thirty four am, there will be issues, especially for ones that don't actually execute, but I see it it's an auto bond. We'll have some issues with quarters and air pockets and worries and bears that have been negative. Untech for last you know, since two thousand and nine come out again
saying that this is a bubble. The reality is it's a Fourth Industrial Revolution plan out and some look, some are going to look at this party from the outside and they'll be like, you know what, I'm just gonna eat ice cream in my room. Guess what, Let's meet at six am for breakfast. I'll go to the party, they go, and who had the better night? And the point is, I think as it all plays out, that's it. This is a tech bull mark. You could deny it.
The multiplier impacts. Just starting with Godfather of Ai Jensen a video.
Just to carry over the analogy. What's the risk of a six am hangover?
First of all, there's after parties at five and six am, and then even in those you'll have some that fall by the wayside. But if you focus on the winners and keep the thesis again, we're gonna be talking about four trillion, five trillion dollar mark aps NASDAK twenty twenty two, twenty five K over the next three four five years.
In my opinion, is that something that you agree with?
Gene, Yes, I mean I like Dan's party analogies much more of my baseball analogies. But I'm at the third inning of this, and we think we're in the early stages of a three to five year market, and I don't I wouldn't. Don't worry about the after don't worry about the hangover at this point, I think you just embrace that this is as the substance will exceed the hype and we've got some great years ahead of us from the market. Now.
Obviously we've been talking a lot about the Magnificent seven stocks and VideA leading the way in lots of aspects. But as we close out this our guys, let's talk a little bit about some of the names that maybe you'd advise investors to steer clear of entirely. Start with Eugene.
Well, this is one that I've had talked about in the past. I've been wrong I'm going to stick with it. It's Netflix, it's a bigger company. It's one that has a benefit to AI, but it's not like a true AI company. It's content, and I think that there's a shift going on in content to the creator economy. Let's think of it as what's happened in YouTube and TikTok multiplied by many times. And I think Hollywood's gonna get disrupted.
I think companies like Netflix are gonna get disrupted, and I think that it's just not that exciting of a story on top of it interesting.
What's your view on where the entertainment industry is going down?
I mean, look, I think you could play the scary sort of angle we saw with some of the Hollywood strikes in terms of how it's going to impact negatively. I actually think it's going to create sub industries and companies that are massively successful streaming. There is a revolution going on. It's content driven and you're gonna see more and more entertainment companies. Applications gonna be built on top
of watching sports, watching entertainment. You're gonna be able to go into a movie, whether it's a vision pro or others that you'll be bringing in the point is this things are gonna be happening over the coming years that you never would have imagined today, and there's gonna be winners from that and losers. And I think that's something as it all plays out. That's why you listen to people like Gene, because they don't get nerve on quarters.
They don't all of a sudden like so many others just follow the herd and go negative the farest through the trees. That's why if Gene was a pilot, I'd be I'd be in three a drinking cabernet. I feel I'm pretty comfortable watching Netflix over.
There in first class. What about winners, dan Ives, what what are your biggest names that you're looking at to really do well in the long term.
I think the messy of AI, Pounteer front and center. I think names like service now Oracle with the renaissance of growth. I look at names like Mango dB, you know, and then of course Microsoft being one of our top picks. I think what's gonna happen is in software and even cybersecurity names that CrowdStrike, z scal or powle out. Though there's gonna be a massive talent in terms of these AI driven workoods to Batanga ten from send me to software.
Of course, we know your coverage of Apple and some of the other big cap tech names, Geane, what are some of your biggest winners as we think farther ahead into where we could be in this tech cycle.
Apple is going to surprise people the next few years. I think Tesla is going to surprise people around these variant vehicles that they're going to come up with. And I think there's going to be some legs to Optimus on the what else. As I mentioned spent a lot of time on the private side. I think companies like Xai are going to be one of the anointed foundation models. Data Bricks, I think is another company I mentioned Andrew before.
This is kind of the future of defense tech. And well, those three are difficult to invest in today, they soon in a matter of a few years, will be public.
Really appreciate having you both on to take this longer term view in an hour long roundtable discussion on this massive bull run that we can continue to see in the tech space. Thanks to both of you for being with us. Web Bush Security Senior Equity research Channalyst Dan Ives along with Gene Munster, managing partner at Deepwater Asset Management, spending the entire hour with us on this special edition
of Bloomberg Daybreak. We want to thank you as well for taking time out from your Independence Day holiday to get in on this discussion. Hope you have a very happy and safe fourth of July. I'm Nathan Hager inviting you to stay with us. The day's top stories and global business headlines are coming up right now