Thank you so much for joining us for this special edition of Bloomberg Daybreak. Happy New Year, everybody, Welcome to twenty twenty five. Markets are closed for the holiday. I'm Nathan Hager coming up this hour. They are back. It's become a bit of a tradition here. Two of the most prominent tech analysts on Wall Street are with us for the entire hour, getting you ready for what's hot
in high tech in twenty twenty five. So, without further introduction, we are pleased to welcome back Gene Monster, managing partner in Deepwater Asset Management, and Dan Ives, global head of Tech research at Webbush Security. So great to have the both of you back with us on this holiday. And let's kick this off if we can, with a look at artificial intelligence, because obviously this has been the maybe the biggest theme on Wall Street since chat GPT came
out two years ago. So, Gene, here's what you told us this time last year about where you think we are in the AI cycle.
Listen, we're in the early stages of a three to five year bull 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.
You told us it's the third inning of the AI ball game, Jean, So where would you say we are now?
I think we're probably on the fourth inning. We're still early, which seems out of touch with reality, but I think that that is how significant this transformation is going to be, and so we're definitely further along. But I still believe I talked about three to five years. I think we've
still got another two good years left here. And I think that as you know, this concept of the substance exceeding the hype we are seen now with some of the hardware companies, but we really haven't seen it beyond beyond a few companies.
And I just put this.
This is one of the more encouraging data points is that opening up doesn't break out these numbers, but you can back into them. They're daily active users for GPT Global are around one hundred and fifty million, one hundred and fifty million. Google's daily act A search uses are two point five billion. In other words, even though we talk a lot about this. The whole train really is still in the station.
So it's still early innings for you. Let's turn to you, Dan, because here's what you told us about where you think the AI boom was this time last year.
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.
Is it still an auto bond for you, Dan? Or are we running into speed bumps?
Well, it's ten pm in this AI party that goes to four am, and I think if you see how this all played out, as Junie talked about, this is just the first step in two trillion of AI capacs.
And I just went point to for every dollar spend on a video chip, we believe there's an eight to ten dollars multiplier across the rest of tech, and that speech to why we believe this is a bull market that continues to play out throughout twenty twenty five and ultimately twenty twenty six because of where this spending is and it just is starting. And that's why I always say the bears when they're in their caves in hibernation mode like the last two years, they can't find AI in the spreadsheets.
But if it's still progressing, if we're still at the early innings for both of you guys, when do these companies need to show that they're getting past the early stages. I'll start with you, Gene.
I think with the software company. So we've obviously seen it in the hardware, and I love that eight x multiplier. I think that you're framing in there, and I think it just it paints the picture of the scope of what's happening with hardware, and also that this year we're going to have to see some improvement in some of the software growth rates. And it doesn't need to be significant. We're talking about acceleration. In the case of like Salesforce,
they grew booking this last quarter at ten percent. I thy can inch that up to twelve percent for example. I think that that would be enough. All investors need to see in twenty twenty five is just that the numbers are starting to move higher. They don't need to have These companies don't need to have breath taking breakout like we've seen with Nvidio. We just need the tie to slowly rise, and I think that the trade is going to be intact.
Is that how you see it?
Dan?
I mean you were talking last year about an autobahn, about this sort of breakneck speed at which AI could develop. Is a slowdown going to be enough to keep investors in this?
Look? I think? I mean to a Jean's talking about it's about software now is at the AI party? I mean they were behind the velvet ropes waiting to get their name on the list, and now look who's there. It's the messy of AI. Pound Teer, you you got sales force, you got service now because the use cases are happening. And that's how poll and Teer remember the hater they hated as a teenager thirteen dollar stock, now
they hated as a senior citizen in eighty. Because it's just starting to play out in terms of the second third derivative, that software, that cybersecurity, that the AI infrastructure, and Christmas came early to the bulls with con out of the FTC. That means deal making finally is going to start up. Because that was a nightmare on Elm Street for tech Conn the FTC. That's over and the
Trump administration. It's a goldilock scenario for the bulls, specially the AI revolution here, and it's still in nineteen ninety six. It's not nineteen ninety nine in terms of our vu how this all plays out.
Talk to me a little bit, Gene about how you see the regulatory environment playing out once we get into the early days of twenty twenty five.
I want to add something to what Dan just talked about in terms of the nineteen ninety six analogy, and Dan and I were around there. We were covering tech at that point and lived that just really special time in investing, and I want to just mention there's an important nuance to how the market I think plays out in twenty twenty five is that during that run from ninety six to two thousand, there were during that period
there were ten pullbacks. There's twelve pullbacks from ninety five to two thousand, so ten pullbacks, so about two per year is what we saw of ten percent or greater on the Nasdaq. And I just want to anticipate joining Dan later on in twenty five and talk about this pullback in the market, like is this over? And I would just say this is is really healthy for these multi year runs to have these pullbacks, and so I'm anticipating,
as I said, a couple of those. And what's going to be the piece that kind of what's the catalyst that does that. It's always hard to predict, but we're going to get those. And I still continue to believe we're going to end twenty five much higher on the NASZAQ than we started so and just quickly on the on.
The on the regulatory piece.
And I think that big tech has been you know, largely in the penalty box when it comes to trying to acquire and innovate around that, and my my hope, my expectation is that I think that that's going to loosen.
I think we're going to see some some bigger acquisitions in twenty five, and I think it's going to be about bigger they're small companies, but they're going to have high valuations that are in the private market today, and we can talk more about those, but I think this is going to be a good year for big tech and that from that perspective, yeah.
We are going to get into some of that. We are speaking with Gene Monster, the managing partner at deep Water Asset Management and Dan, Global head of Tech Research at Webbush Securities. Dan to Jean's point about the possibility of pullbacks in big tech in twenty twenty five. I mean, obviously we've seen the valuations where they are. They're sky high for a lot of people. You say, they're justified. What is the risk that we could see a little bit of choppiness as we head into the next few years.
Look, and to that pointment came about this year Tokyo Black Monday, Right, I mean you had five or six other points. Some of the FED and the Bond Vijulanes come out and those create the opportunities. And I think with Trump coming in there would definitely be be some white knuckle moments with China tariff discussions, game of high stakes poker going on. Right, So there's been a lot of headline risk. But the Gene's point, that's what you
tune the noise down, You focus in the winners. And again the bears that talk about valuation, that's how they missed every transformational tech nam in the last twenty years, because when you're in the right lane going thirty five miles an hour, you're not focused on paying up to the Ferrari going ninety miles an hour in the left lane. But that is ai revolution. You will have those moments and you just have your pencils writing just to play.
Tell me add something to the valuation, because you're right on Dan another great point just about you know this, the bears are looking at valuation not recognizing the significance valuation. Let's just go back and use the example of what happened from ninety five to two thousand. The Nasdaq peaked at one hundred times earnings on future Right now, where what are we high twenties something like that.
We're not even close now.
Given the dynamic of the megacaps today that we didn't have twenty five years ago, you're not going to get one hundred multiple on the NASDAK, but you might get a fifty multiple on it. And so I think that the conversation about valuation, to me, misses the point when a paradigm shift happens and you area kicks in. Really impressive things can happen on multiple expansion.
I'd say, frame what Genior said, Print that out frame it. We're going to be talking about that in a year, though.
I got to ask, I mean, it's the point that I guess gets brought up every year around this when you bring in the analogy of nineteen ninety five versus now, it raises the question about whether this is going to be a repeat of the dot com boom. I mean, you both have talked about how artificial intelligence could potentially be a paradigm shift. We've seen it play out in certain ways, but other than chat GPT, cute chatbots, and you know, changes in the way people search for things online.
How do we see that paradigm shift? When do we get to the point that we're going to see the kind of productivity improvements across the economy that so many of the bulls around AI have been predicting. I'll start with you, Dan, Look.
That's where it's happening. Consumer is not even gonna have them for I'll say, second half twenty five, going to down in twenty six. But look what's happened in the enterprise. That's where you're seeing the cap back. That's why Jensen's the godfather of AI. That's what we're seeing across cloud. You're gonna see the paradigm change. It's already happened with the use case from the enterprise consumer that's coming still ahead.
It speaks this multi year run in terms of what we're going to see in terms of Fourth Industrial Revolution, and.
Your thoughts just quickly, Jane.
I mean, I think it's it's starting.
If you look at enterprise piece that's you listen to Benny Aff's comments from Salesforce about how he sees agents basically taking over half of the humans works. It's in medicine, we're doing experiments and projects and using AI and the investment side too, and bottom line there's massive cost saving. So I think it's actually happening more. It's just that the consumer pieces Dan said hasn't kicked in yet.
And we're going to talk much more about this potential use cases for artificial intelligence and more of the hot tech trends coming into the new year as we continue on this special edition of Bloomberg Daybreak focused on Tech with Gene Munster, managing partner at Deepwater Asset Management, and Dan Ives, the global head of Tech research at web Bush Securities, with us for the full hour on this New Year's day, so stay with us. It is twenty minutes past the hour. I'm Nathan Hager, and this.
Is Bloomberg.
Welcome back to the special edition of Bloomberg Daybreak. I'm Nathan Hager. Markets are closed for the New Year's holiday, but it's a high tech power hour. We are speaking for the entire hour with Dan Ives, global head of Tech Research at web Securities, and Gene Munster, the managing partner at Deepwater Asset Management. Of course, we've been focused for most of the start of this show on the promise for artificial intelligence, the continued potential for investment in
this sector. Want to ask you, guys, where you see winners and losers now that we are at this stage in AI development. So Dan, I'll start with you, who do you see as some of the biggest winners in AI heading into twenty five.
Look, I think winners are Software is going to be a huge winner, and that's Pound Tier, That's Oracle at Salesforce, dot Com, Mango, dB, Snowflake. I mean the point is I think software is really going to be the beneficiary in twenty twenty five is the use cases build out, and I think more investors start to play second third derivatives of AI. When you will do losers, I think it's hardware. I mean, I think right now, no don't try to do actussy like a Cisco review where Cisco
HP Dell. I think a lot of the core infrastructure where they're set up, it's just not a good place. They're gonna have to do M and A. But this is trending much more to software driven and i'd even say hyper scours. They're just going to try to gain more and more market share, especially with ton and they don't at the FTC.
What's your view on this gene? Who do you see as the winners and losers at this stage?
I think the sweet spot I would agree with you. I think the sweet spot is going to come from software. I think the hardware piece is gonna last a little bit longer. But the companies that Dan highlighted as in a troubled direction, I think that they're going to continue to be in a trouble.
Basically, if you don't.
Have a real hardware AI play, you're just you're just gonna die in the vine. And so I think that you know, there's still more room with UH Nvidia for example. I think that UH some of the other micron a big big sell off recently, and I think that these companies are still going to be in a good place, but the substance of the trade I think is going to shift to software. Think there's another piece that probably follows the fold. For a lot we do private investing
in a couple companies. Data Bricks is getting a ton of share and you're going to hear a lot more about them. They basically help organize unstructured data FREEI training and then androll the defense tech company. I mean, if this was the last valuation was at fifteen billion, if this was a public company, it would be a Meme stock of all Meme stocks. I don't know what the
valuation would be, but it would be exponentially higher. And so I think there's some really exciting things going on with those two private companies are going to be part of our everyday conversation in the year or two.
In terms of the software plays, Dan, how do you see AI playing out in terms of software in terms of use cases in twenty twenty five, Look, I.
Think it's going to be about the install bases, because as much as you know in video is going to clearly be a winner. Continued, I think for trillion markap along with Apple. So we get to twenty five, it's going to be about the install basis. So when you look at from Adobe to Oracle to service now to Benioff, I think the masterpiece where I see for salesforce, dot
Com and of course names like Palunteer. I think the use cases it's going to be agent force what we're seeing with Salesforce, but it's going to move to marketing, to analytics to ERP. We're going to see these use cases go from spot to spot to spot, and I think that is going to be a huge part of the investing cycle as investors now focus on okay, where skate to where the puck's going? And I think that's
going to create the opportunities is software. This is going to be a golden age for software as well as cybersecurity, you know, led by the Fourth Industrial Revolution.
Gene, do you see some of these software cases playing out this year? Do you think that we'll see the kind of use case for artificial intelligence that you guys have been predicting over the last couple of years actually starting to come to fruition in twenty twenty five.
Yes, I think that in the back half of this year, this software piece, we're going to start to see a slight increase in revenue. These tools are starting to get rolled out, and look at companies like Service now, they're already directly benefiting from this.
It's going to be this year.
In twenty five, it's probably going to come mostly from the megacaps. And I think you know Dan's comment about Benioff, I'll just emphasize listen to that his comments. You spoke for twenty five minutes twenty two times. He gave some statement about how transformative AI is going to be. If you take that and divide it by five, it's still going to be a I think this year is still setting up to be an acceleration in growth, and so
I think we will see the substance this year. But I would just also caution people that some of the substance you're not going to see. It's not going to
be obvious. It's going to be behind the scenes. It's going to be in things like improving margins as companies start to implement these at the enterprise level and start to implement just more efficient agents, and so I think that that's a different Another piece that we're going to start to see in the back half of twenty five is improving margins.
Speaking with Gene Munster, the managing partner at Deepwater Asset Management, along with Dan Ives, the global head of Tech Research at Webbush Securities. With these kinds of changes, guys, there's the continued need, I think for capital investment. We've seen so much of that, particularly in some of the biggest players whose market capitalizations have grown by such leaps and bounds, not the least of which is in Nvidia. Dan, how
do you you see CAPEX playing out? Is it sustainable for this kind of growth?
Look? I think, and it brings up a great point and I'd be interested to hear Genes thoughts on this, as always in terms of when you compare dot com to here, because here the cat bacs, we're talking about two trillion of AI capacs. And what's amazing eye popping is sovereigns haven't even gotten into this yet. You haven't even had the rest of Fortune five hundred, Global two thousand.
It's really only big tech today. So when you look at this AI cappax, I can tell you follow the yellow brick road, you follow the cap backs, because if you follow the capax, you're gonna win on these stocks, from semis to software to infrastructure, and then ultimately to
the consumer piece. And to this point, you have tech companies at one point two trillion of cash in the balance sheet generating three to four hundred billion a year, as opposed when you go to dot Com and every time someone to do the scary Cisco and video comparison on the chart, those are funded by companies that were basically levered, no business models, and it goes back to that dot Com error. I'm just trying to say a
much different in apples to oranges comparison. You follow the cap backs and I just want to hear Genes thoughts on this.
Yeah, that's the yell bigger road, Dan, you got a great way of just illustrating things, and I'm I'm gonna play on that yellow brick road.
Is that when this amount, this level of a capex happens.
That's one of the reasons why I'm so confident that AI the substance is going to exceed the hype and this is going to be bigger than the Internet. Is that the just the this degree is multiple times bigger than what we saw with the Internet build out. It
will be ten x, twelve x, fifteen x bigger. And when you have that kind of infrastructure in place, there's just a natural gravity that the theme starts to pull in all these different applications, and so I think that CAPEX is probably the most important factor to continue to.
Gauge how well this is.
Like is this going to play out at this point For those who believe that this is just going to be something more like mobile, the level of investment I think is justification that this is going to have more substance to it.
But Dan, you mentioned that sovereigns haven't really gotten in on this as much as some of the bigger companies have. Raises the question about what kind of impact trade wars could have on artificial intelligence. If we get into a scenario where soon to be President Donald Trump starts putting tariffs on many of these sovereigns, could that be a hindrance to AI development?
See IV, the bar's going to be worse bite. I mean, the point is, if you look at how this is all going to play out, I think you're gonna ultimately have carve outs for the likes of Tesla, Apple and allow of the chips that an video makes. And look, this is all going to be a game of high
stakes poker. But when it all comes down to it, I don't think it disrupts supply chain dramatically, and I don't think it disrupts the AI revolution because look, China wants to benefit to the same extent that we're going to see here in the US. But that's the other thing when it comes to Trump administration. Trump administration is bullish for AI.
The risk of these nations not investing in AI could be the end of these countries. I mean ultimately countries that are going to need an AI first approach. And so anything that happens with tariffs or any sort of economic slowdown that we may see across the globe is a small impact as a small factor relative to what needs to be invested. And so this is top of
mind spending. It hasn't started. As Dan said, there's another piece that hasn't started as well, which is industrial AI, the enterprise AI all this and the concept that this is still largely big tech that's doing it. I think that again is another piece that gives me so much confidence.
And sovereign is going to be there as well.
So Gene Nathan say, Jane brought a great point because me and Jane have seen over the decades and decades cover an Apple China tariff supply chain retaliatory tesla. There were so many moments over the years where you could just hit in a little cave and just basically hit the eggsit button on the stocks. The point is it will create the opportunities when we sit here a year from now, and I believe text up another twenty five percent.
I think sovereign's become more involved and the tariffs becomes some white knuckles, but it doesn't ruin anything.
So Gene, how do you see sovereigns getting into this? What's the catalyst for sovereigns to get into the AI story.
I think you have to have Notoriously governments are slow to move, and I think the catalyst is going to be when like the US and China are largely on board with that. So I think there's a competitive piece that needs to kick in as a catalyst, and I think that that probably starts sometime this year. I think that they were going to see that's one of the reasons not just the sovereigny I the catalyst is the competition,
but also with industrial AI. I think that that's one of the reasons why I think that the nvidity in Nvidia trade is going to continue to be a good place to be. So it's different than consumer and enterprise, that's for sure when it comes to sovereign, but there's a lot of money to be spent there.
They are just getting going.
And we're going to wrap up this hour long discussion on high tech trends as this special edition of Bloomberg Daybreak continues with Gene Munster, managing partner in deep Water Asset Management and Dan Ives, the global head of Tech Research at Wedbush Security. So stay with us. It's thirty seven minutes past the hour. I'm Nathan Hager, and this is Bloomberg. Thanks again for being with us on this special holiday edition of Bloomberg Daybreak. All is quiet in
markets on this New Year's Day. I'm Nathan Hager, and it's time to wrap up this special high tech roundtable. We have been spending the entire hour with Gene Munster, managing partner at deep Water Asset Management and Dan Ives, the global head of Tech Research at Webbush Securities. It's been a great discuss on where things could go with
artificial intelligence. But as we close this out, guys, I want to focus in on some individual stocks, some of the biggest names that you cover on Wall Street, and I guess we'll start with one that fits the theme in Vidio. Where do you see in Vidio going gene?
I think it's going higher, and I think that it is like a surprisingly inexpensive stock when you think about off of the twenty twenty six numbers. And Dan mentioned the white knuckling, and I'll tell you what a lot of investors and video investors are white knuckled over the boom and.
Bust of hardware.
The business was about a twenty billion dollar business before the AI training got going, and it's going to be about one hundred and fifty billion dollars next year. So I've never seen anything like this at this scale. And because of that, it just creates this concern that it can't go on.
And I want to.
Stress too, and video will have its day when the second derivative kicks in and slows down a little bit more than people think and the stock gets throttled.
I don't think that's this year.
I think this is the year where we start to reach out and video starts to reach out beyond some of the hyper scalers into some of these other markets that we're talking about, and they're another piece that is just getting kicked off.
What we're seeing.
Around this timescaling, this infancing time scaling that's going on in these models starting to think more Jensen talked a little bit about on their last call. But that's a whole other wave in terms of the models needing more compute capacity. And so when you put all this together, I think in Vidia's setting up to have a good year, a great year, because the expectations for calendar twenty six are going to move higher.
There have been so many expectations built into this stock. You mentioned some of the need to move beyond the hyper scalers into the sovereigns. Those are things that we've been talking about when it comes to Nvidia for the last several quarters. Dan can in Nvidia sort of live up to a lot of the expectation that's been built into this stock.
Look our recent Asia trip demand the supply is fifteen to one for in video chips. Three months ago it was twelve to one. It's accelerating, and that's why there's only one red phone. If you need an AI chip, it's the godfather of AI. Jensen Nvidia. I mean, you look at AMD, others that maybe you'll call it twelve eighteen months now will be there, but that they continue to be the only game in town. And I ultimately, look, you look out here, could you get to six dollars earnings?
You look in one hundred and eighty two hundred dollars stock. And that's why I think this is one where any sell offs in in video. They're table pounders. You just own them.
I think you've called for Nvidia to be one of the first four trillion dollar market cap stocks, is that right?
Look, the first one will be Cooper Tino. They'll cut the ribbon being the first four trillion and then that exclusive club they're gonna welcome in Jensen and Video, that four trillion dollar our club, and then followed by Microsoft.
Alluding to Apple with the reference to Coopertino. I know another stock that you watch very closely, Gene, what are your predictions for Apple heading into twenty twenty?
I want I want Dan to go first on this one.
I want to Okay again.
Look, i'd say Gene and I for decades, why I respect him more than anyone on Wall Street. It's seen the farest of the trees and apples. Another one, the AI revolution, the consumer AI revolution, comes through Cooper Tina
because it starts with iPhone sixteen. Apple Intelligence just rolling out, but it's a multi year China is not even going to be rolled out till April, so you start to look at this with three hundred million iPhones in a window of an upgrade opportunity, this will be the renaissance of growth for Apple. And that's why I think ultimately a year from we're looking four and a half trillion dollar mark CAAP. You know, as Apple goes through what I believe, we start to look at three twenty five,
three fifty dollars. And I know Gene's talked about this a lot, but this is the moment for cooking Coupe Tina, Gene.
You know, in terms of the numbers that back up that theme is that the iPhone. As the iPhone goes, so goes Apple, so goes the stock and iPhone in twenty Fiscal twenty four was flat. Fiscal twenty five, the streets looking for three percent growth. It was five percent at the end of September, So analyst expectations actually come down.
And the reason they've come down is because the initial rollout of Apple Intelligence in the US has been in some eyes, underwhelming, and so the analysts bring their numbers down. For fiscal twenty six it's eight percent, so it goes zero three eight percent. They're going to beat those numbers, and I think that I love dance take on this mine is so for fiscal twenty five, the streets at three percent, I think we're probably going to be closer
to five to eight percent for iPhone growth. And for fiscal twenty six that eight percent, I think it's probably closer to ten to twelve, which is like an order of magnitude outside of where I think most investors are thinking. But ultimately, I think that these features are going to drive an upgrade cycle.
And I just add to gene two hundred forty million units for I Phone, which will break, you know, break a record. That's where I think they end up for fiscal twenty five. And that's why the hater they hated two trillion, despised three trillion. At four trillion, they'll be yelling from the tree tops.
So does Apple get to look past vision pro some of the other products that have had to fall by the wayside, things like the Apple car Is it all about the iPhone? Can it continue to be?
Gene definitely in fiscal twenty five, it's about how Apple intelligence drives iPhone growth. And like Dan was talking about, is there's also this pool from what happened in twenty twenty one iPhone was up thirty seven percent. You get that fact starting to kick in. That just boggles my mind that investors just aren't tracking to that wave that's coming. As much as Dan has talked about, its still like that light still I think largely hasn't gone on, but
they get because of that opportunity. They do get a pass on Vision Pro. It's been a disappointment, it is. I think that the strategy. I think they just need to shift to doing more smart glasses AI glasses. I think that that seems that that's where the markets can evolve. I don't think we're going to see any products this year from that perspective, but I do ultimately think that that is where Apple goes. So in the midst of not having a new product category, it really is about
a hardware category. It's about the software, the AI product category.
In twenty twenty five, we're.
Speaking with Gene Munster Managing Director deep Water Asset Management and web Bush Securities Global head of Tech Research, Dan Ives. Let's shift gears to another stock, Dan, that I know you watch very closely. Tesla. It's been on a tear since the election of President like Donald Trump, Elon Musk is very close to the President elect. Where does Tesla go in twenty twenty five? Can it continue this break neck pace?
Look, it was a bet for the ages in terms of must bet on Trump, and I think it's your start because the autonomous future, that's the goal at the end of the rainbow for Tesla deliveries to be on Right now, I think that's ten percent of the story,
the autonomous and AI future. I think it's worth a trillion dollars a will into the Tesla story, which I believe in a bulk case you can see a six hundred and fifty dollars stock and you look now for the cloudy kid fans a sweep the leg movement for regulatory knit to and others, and now autonomous starts to get I think a huge sort of catalyst with Trump in there and Tesla is going to be the main beneficiary. I could argue Tesla could be the best AI play out there.
You agree with that Gene best Ay I play is Tesla.
We definitely like it's what that company is doing is more exciting than I think the rest of the megacaps all put together. When you look at whether it's autonomy, whether they're changing how they produce vehicles, what's going on with optimists, all this puts it in that category. So super exciting, high valuation, but really exciting that I think from my perspective is that they're just slowly checking the boxes. I don't know what the stock is going to do
month to month on this. I do feel it's going higher longer term because they are the most exciting company in AI and I think the just kind of put one other further point of how they turn the screws down on these trends is we just had GM back out of their autonomous program effectively, which is huge news. And then separately what's going on with Honda and Nissan.
It's really noteworthy, and the car part of the business doesn't give as much attention, but it's worth noting that that relationship is evidence that the car industry is going to get turned upside down in the next decade and there are going to be brands that we've known for a long time that aren't going to be around. And my prediction is that this mashup between Nissan and Honda is going to essentially be a slow decline to both companies will be a fraction of what they are even today.
And the reason for that is for what Tesla's doing, not just on the electrification side, but autonomy, and just those two companies just haven't innovated. And if you're not innovating at just a lightning speed, you're on your way to being irrelevant.
In the time we have left. Guys, let's talk about some of the stocks that we haven't talked about just yet that need to be on investors radar, and I'll start with you, Dan.
Look, I think it starts with Palnentier. I mean the messy of AI. I think where Carbon Poundeer have done that continues to sort of be the first piece of this software layer, and I think this is really the model that more and more companies are going to go down. And the other thing is that the amount going to be spent in the belly on AI is mind blowing. Names like Palenteer are going to continue to benefit I believe Palenteer could be the next oracle, and that's why
they haters well Hated is a teenager stock. They hate is the seniorsites and continues to doing when we're topics.
Gene what should be on investors radar?
I think Google it's a company that is keeping up investors up at night because they don't know how perplexity or search for your GPT is going to be impacting their business longer term. But search is just such an habitual behavior. It's got to be tenex better. I don't think these other players are ten x better yet. And separately, is that Google's made a lot of progress. I think that the company still needs a fire underm don't get me wrong.
I mean they've been.
Asleep at the wheel here, but just in the past year made a lot of progress. And the models that they showed at the end of December, the new models that they came out with horrible name Gemini to Flash thinking. I mean, they couldn't have created a worse name for the product, but it came it's out and available for developers, and GPT is not there yet. They just announced that it's coming just on the heels of Google and that's
a flip flop from a year ago. Now you see Google ahead, and I think that that's going to start to resonate with investors in twenty five.
This has been a real pleasure you guys, have you on for the full hour to talk about tech trends heading into the new year, and looking forward to doing this again seeing how many pan out as we continue tracking the trajectory of the artificial intelligence trend and how it's going to play out on Wall Street. So thanks again to Gene Munster, managing partner Deepwater Asset Management for joining us on this high tech roundtable along with Dan Ives,
global head of Tech Research at Webbush Securities. And we'd like to thank you as well for spending time with us on this New Year's holiday. I hope it is a healthy and prosperous twenty twenty five for all of you. I'm Nathan Hager. Stay with us. Today's top stories and global business headlines are coming up right now.