Bloomberg Audio Studios, podcasts, radio news.
Think back on twenty twenty five the returns we've had, inequities and fixing come and commodities, and I think about twenty twenty six worst opportunities and where you really want to start is in technology. We can do that with Dan Ives. He's a senior tech analyst and head of technology research at what Bush. Curty, Stan, thanks for being in our studio here here is always all right, set us Let's set us up for twenty twenty six. In tech, I mean the consumer electronics shows in a couple of
weeks in Vegas. I'm sure you're going to be their huge presence there. Use my name. If you go to Bolagio, they'll take care of you.
I know, you know, you say Sweeney. It always gets you the best way it does it. It opens, doores, open store, it opens. Yeah.
What are you thinking about twenty twenty six?
Here?
For AI? Look, I mean obviously it starts off at Cees where I think that Jensen's speech on that Monday is going to set the tone set right in terms of autonomous robotics physical AI. But look, I think the reality is is that despite a lot of the haters and the bears and hibernation mood. It is gonna be I think just a booming year for AI and TEX stocks,
especially in the first half of the year. I think investors are underestimating, specifically on software, like we talked about not just Palenteer, but Manga, dB Snowflake, a Lout, the infrastructure plays, Nebiis and some of those others. It's about the derivative place, the second, third, fourth derivatives, CrowdStrike, cybersecurity, power, Alto, and I think what we're gonna see play out Microsoft Oracle. Look,
I think we say here a year from now. Oracle is the name that I think investors are just throwing in the garbage. That's the one I think investors are getting, yeah, because it's the view, like taking on debt, open ai is not gonna be good for their bill. Look if you look at any open ai related tech stock, from AMD to you know, to Microsoft to Oracle, those stocks have sold off significantly. And I think the reality is this is an AI revolution where you're in. We talked
about the AI party. It's ten thirty ten forty five pm. Party goes to four am, start at nine pm, and open Ai is going to play a huge role in that in the infrastructure build out. So to me, Paul, it's like I think, like tech stocks, they're up to twenty five percent really that.
Twenty twenty six. But I mean, is that the big names like in Vidia because I think to myself, lots of competition out there for them. First of all, supply chain challenges continue, but you've also got Google and Amazon, big competitors who are playing catch up with Nvidia. Can can it really hold on to that momentum in twenty twenty six?
Well, there's only one godfather of AI. He's wearing a black leather jacket. His name's Jensen, And I think, look, they are five years ahead of any other competitor. That's why look for them, like even their third best chip restricted each two hundred right in China, despite whatever the polotic baba JD Tencent, they want those chips because it comes down to like they are so many years ahead of competition. I think, book AMD, that's gonna be a
major play that we see playing out. And then I think you start to look at like what Google's doing, what Microsoft is doing in so in this chip world, it's in an AI arms rates, but here's the deal. For the first time in thirty years, US is ahead of China when it comes to tech. How about that that that is I think that's really like the most important thing here is that's it's.
Getting lost in the sauce. I feel what you just said.
Well, it is because for so many times, like I'd be in Taiwan eighteen hours seeing like factory fabs, then land the newark aaraport, there's some fisfied Dunkin Donuts and You're like, wow, we are like so Bahat now switched.
So is Opening Eye gonna go public in twenty twenty six and is that going to be a seminal event for.
I think early twenty seven? Okay, they go, they could file maybe by the late twenty six. But I think that's the thing like SpaceX, you think about Anthropic, you think about Open Ai. Look, the reality is is that you know, people talk about bubble some of the best companies that haven't even gotten public yet. And I think
there's a supply demand for big growth names. And that's why to me, I think investors that are seeing it's a bubble text done, they're doing it from the twenty fifth fourth of New York City office building or Metro North, right. I mean the reality is like for someone like me that sees it globally, sees the demand that supplies twelve to one for video chips today any Asia.
But here's the question, is there enough energy out there to meet that supply? Because that's one of the big the biggest challenge going forward.
That's Look, if you think the thing to me that like if you're just like, what could spoil the AI party? It's not about demand fourth and Dutch Revolution. It's not about like the use cases. It's energy and regulation. And look, energy, that's why like you know, you look what's happened on nuclear. You saw the TAE deal with you know obviously trum media. You saw what Google's doing in terms of them buying their own energy company. I mean, energy is the biggest
restriction in the US. But I continue to believe like nuclear is going to be the play there.
CS It's two h and fifty three hundred thousand people to send on vegas for it, and it's been going there for forty years. I've been going to this thing. This one feels like we might get like a seminal announcement coming out of this, whether it's a product, service and investment, a deal, it just feels like maybe this CEES might be something where something really material pops out of it.
Yeah, I agree, because like look for so many years CEI it's like, oh, a great refrigerator that talks to you, a cool drone that now it's really become like central to the when you're think about the AI revolution, I think when you do about chips, when you look what's coming out of AMD, I think in Nvidia is really gonna double down on robotics. I think quantum is another one. If you go back a year ago, that's where Jensen was sort of quantums, like ten fifteen years away, QUANM
stocks sold up. I actually think there's gonna be a lot more bullet when it comes to quantum. And look, I know half the companies that I know that are going there. They're not officially there. Why they going there. They're not going there to you know, to to go to the Cosmo or go to the wind for dinner. They're going because they're looking. They're looking for acquisitions.
I kind of feel like during CS if I talked to a CEO, I think my first question is could be why you're not in Vegas, Like, I don't care what business you're in. I'm in the point you're touched by the technology, Yeah, exactly.
But to Paul's point, it's this isn't just about like consumer gadgets one hundred inch televisions that somehow talk to you. Now it's really become central to like we're the technology. Think about the Chinese presence there in terms of X paying bid everyone else. You think about autonomous robotics, and that's why, like I think the one thing like to stress to anyone listening is like this is AI. It's not just about like chat, GPT, what mid do you use?
We are now this is the year Apple goes deep thousands of deep end the pool when it comes to AI on the consumer side, We're now gonna hit the next level of the AI revolution. But this is a nineteen ninety six moment, not nineteen ninety nine two thousand bubble moments.
Yes, thankfully. Do we expect a big China presence at this thing given the relationship right now between the US and China.
If you're a China tech company, you have to come here. And I think, like when I think about like the presence last year that was already signific. This year it is it's booming because for them, okay, like they're not gonna be able to sell into the US at least currently, but this for them, it's a flex to muscles on the global stage in terms of them selling South America, Europe, Australia. I mean that is that world descends upon still because
when you this is the world event. But to Paul's point, like, if you're not there, it's almost like being in a wedding at a table by the kitchen with random people instead of being at like kind of like Paul, he's always like front and center, like he's at the cool table.
Matt Campbell named seventeenth Penn State head football coach. What do you think?
Look, I think Campbell like he is the right guy for Penn State. I mean it's not just that it's the staff he's going to bring in. He's he knows how to recruit. I think he's the magic formula. I think now we'll get Dan town Lynn from the USC as a defensive coordinator. This is going to build the stage to what I've like people will say next year, I got to rebuilding there. I disagree. I think this gets us back into the playoffs next year and it
goes back to the dream Natty. In twenty seven or twenty eight, there we.
Go Penn State, a new cycle there as coach Franklin moves on to Virginia Tech. We got the Matt Campbellton. You come up there at Penn State and Dan ives Very is an alum and very involved in this school. Dan I thanks so much for joining us. Is senior tech analysis web Bush Security, giving us the latest thoughts there