Stocks Are EXPLODING HIGHER!

0:00Hello, everyone. Happy Friday. Stocks keep hitting all-time highs, and the legend Dan Ives is going to sit down with us for an exclusive interview on what stocks he thinks are going to appreciate the most in the coming year. We're live today from the desk of Anthony Pompliano.

0:24Before we get into today's show, I need your help. My goal is to get to 1 million subscribers, But right now, we're only at 24 ,745. That's a long way away. But with your help, we're going to get there. So hit that subscribe button and let's get into it. All right, ladies and gentlemen. Well, remember back in April when everyone was so worried? They were yelling and screaming on the internet. They were telling you how there was going to be a recession, a depression. The shelves were supposed to be empty. The world was going to end. That the economic policies that were getting put in place, that they were going to be so destructive that America, the greatest economy ever created in the world, it was going to just poof, disappear into thin air.

1:05And all of a sudden we were going to be a third world country. We were going to have a banana republic where the currency inflated away overnight and you were going to suffer. None of that happened. Literally none of it. The stock market went down about 20%. The president of the United States tweeted and said, buy stocks. And the stock market has gone on a historic run, over 30 % up in just a couple of months. We've almost never seen this happen in history. And so now what we're seeing is that inflation never exploded. Actually, we're seeing that none of the actual price increases are being passed on to consumers.

1:43Instead, it's the middleman. That's who's eating the tariffs. The manufacturers in foreign countries, they're eating the tariffs. It's not the American consumer. In fact, what we've seen in some industries is prices are going down, just as they did back in 2018, as I told you. So the beauty is that the stock market is hitting all-time highs. S &P, all-time high. NASDAQ, all-time high. Dow, all-time high. That's because investors are bullish on where we are right now. Markets are forward-looking. It doesn't look in the rearview mirror. It looks to where we're headed. And the fact is right now, the capital allocators, they're very excited about the current state of the economy.

2:21And they're very excited about the performance of these companies. Just look at all of the earnings that are getting reported. We have companies that are worth trillions of dollars that are growing 20 or 30 percent year over year. Their revenue is up. Their income is up. Everything about these companies is telling you the companies are getting more valuable. time highs is because the companies are better. And if the companies are better and investors are excited, guess what happens from here? Things go higher. And so all of those people who were telling you all of the negative stories, all of the worries from the Federal Reserve who is predicting high inflation all the way down to your crazy neighbor who told you to sell all your stocks and go and hide, all of them were wrong.

3:10The stock market is at all time highs. Inflation never showed up. And you should start questioning where you get your information from. Because as you heard on this show for months now, the stock market is always going to continue to go up because they have outlawed bear markets. And they have finally said that if there is any sort of pain in the economy or in the stock market, the Federal Reserve and the US government is going to step in. They're going to cut interest rates. They're going to print money. And they're going to stimulate the hell out of asset prices and the economy. And guess what?

3:48It's what they've been doing this year. And they're going to keep doing it because now they have a playbook. And you as an investor, you can look at all of the fear mongers, or you can simply understand asset prices are going up. So stop listening to all the bears. All right, everyone. I've got a very, very special treat for you today. Dan Ives is a legend on Wall Street. For nearly 30 years, he's been an analyst who's been calling winners and losers. He's been a head of innovative technologies. He's been able to see around the corner. He predicts the future. And he's been right way more times than he's been wrong.

4:25You're going to see him all over television, constantly informing both institutional investors and retail about big themes, big trends, and where big profits lie. So what did I do? I went and I got Dan to come into our studio and I sat down with him for an exclusive interview to talk through artificial intelligence, his favorite stocks, and where he sees markets going in the future. Dan's not only fashionable, he's incredibly smart. So I'm excited for you guys to listen to this. Here's my conversation with Dan Ives. All right, Dan, first of all, amazing outfit. But second of all, you got even better thoughts on the market.

5:00The Fed just cut interest rates by 25 basis points recently. In 1998, when that happened, tech stocks exploded and pretty much ignited what we now know as the dot-com boom and bust. Do you think that's what's going to happen now? Like tech stocks just go to the moon? It's a bright green light for tech stocks, not just into year end, but I mean, we believe that next two to three years, the tech bull market continues to play out. Look, it's a fourth industrial revolution in terms of AI, biggest tech theme in the last 40, 50 years. The only thing stopping or maybe like the ceiling on tech stocks was Fed.

5:31Now with rates cutting, I believe, look, this is just a risk on and the winners, it's still going to be big tech, but now the second, third, fourth derivatives, those start to play out and that's what you're starting to see play out across the market. We continue thinking in the AI party, we've talked, it started off at 9 PM, it's now about 10, 15 PM. So fun hasn't even started really. And that party goes to 4 AM. Now look, in that, between that, there could be glass in the dance floor, DJ stops playing music, maybe cops come. At the end of the day, the bulls and the bears meet up at 6 AM. Bulls had a lot better night than the bears.

6:09All right. So, let's maybe break down the market. There's the Mag 7, like the big guys. How do you see them playing out? Are they big, big winners here as well as others? Look, I think Nvidia, it's a$5 trillion and ultimately a$6 trillion market cap. I mean, look, there's one chip in the world fueling the AI revolution. and right now demand to supply for their chip is still 12 to 1 and china look people will make out in terms of you know a lot of the headline noise in terms of china trying to you know maybe avoid big tech in china trying to buy those chips the reality is they're years ahead of huawei years ahead any chinese player and then you look at the hyperscalers like our top picks oracle microsoft you know when i look at like alphabet i look what's happening amazon because the The hyperscope, we still only less than 50 % of workloads are in the cloud.

6:57And you only have 3 % of enterprises that have actually gone down the AI path. We're talking three to four trillion being spent over the coming years. Our whole part of our AI is AI30. Who's the software name? Palantir, the messy of AI. We believe that's a trillion dollar mark cap next two or three years. Snowfleet, MongoDB. And then it continues across the rest of chips, Broadcom, AMD. I continue to believe Tesla, along with the video, the two best physical AI players, especially as autonomous and robotics play out. That's why I've been so bullish on Tesla, never viewed them as an auto company or as a disruptive tech company.

7:33So when you look at, let's say, Oracle or some of these hyperscalers, what is the thesis as to why they can continue? We know why they're already winning, but how do you think that it doesn't end for four or five, six more years? Sure. But the thesis, for every dollar spent on a video chip, there's an eight to$10 multiplier across the rest of the tech. So what you're seeing play out now is like, okay, that's spending originally on a video 23 and 24 starting to play out across tech. Oracle has the stack. If you're an Oracle customer and you're moving to AI, I would say like a typical Oracle customer of every dollar that they've spent with Oracle the last decade.

8:14AI, you could potentially not just get back that dollar,$1.50. You start to put numbers together. That's why this last quarter, it was the jaw dropper, but it's one of our top picks in terms of the space because we're only early in. Think about what's happening across the world, UK. Look what's happened in Middle East in terms of UAE, Saudi. It's all US big tech. Because my whole point is, look, Some of them are three million air miles the last 25 years. So many times, I'll be in Taiwan, be in China, you land here in the US and you'll be like, okay, are we ever going to catch them? For the first time, 30 years, US is ahead of China when it comes to tech.

8:58That is the key. AI revolution is being led by US big tech that now spreads around the world. Mm-hmm. Now, when we look at this, there's also, I'm going to call it like energy infrastructure, hardware, but on the energy side, like you actually have the power generation, you've got the data centers. What are you guys seeing there that you guys like? I mean, Aqua has been one of our favorites on the nuclear. GE Renova is another one that we're super bullish on because I think what's going to happen now, the utility, the grids, the energy, that's part of the second, third derivative playing out across AI.

9:31You need about six to eight times more power than you do now. There's more data centers being built today than active data centers. So that's why when you think about AI, the trade is not just tech in terms of core big tech. It's also playing the energy side. It's playing the infrastructure. Names like Nevisys, CoreWeave as good examples. That's why we have 30 names that in my view has really been the way to play it. Maybe in 2023, 2024, whoever I met with, institutional, retail, wherever I'd speak, I'd be like, look, have breakfast, lunch, dinner, watch some Netflix and sports and buy NVIDIA.

10:09Now, now - Just NVIDIA and chill. You buy NVIDIA. And then every time it sells off because the haters, the bears coming out of hibernation mode, you buy more. Now, that continues to be the trade. There's only one godfather of AI. He's wearing a black leather jacket. His name's Jensen. But now it's spreading to the rest of tech. And that's why I continue to say this bull market, you talk about Fed cutting, just putting fuel in that sort of engine. And I think, look, in terms of value and will tech not be the leader, I'd rather be in the left lane of Ferrari owning tech names going 100 miles an hour.

10:47You'll hit speed bumps. You'll get a few speeding tickets pulling on your license. Rather than being value right lane in a minivan, going 45 miles an hour with a bummer sticker to say my kid was an honor student in third grade. So the point is that continue to be where I view where I want to be on the left lane. Is Berkshire going to capitulate and finally start buying the AI stocks? Look, it's been, and there's no better goat than Buffett, right? I mean, but my view is like obviously much more value centric. That's If you look like Apple and a bunch of the other names that they've sold off, look, I think I could see Berkshire.

11:20My view is, okay, it might not be maybe some of the core tech name, but now as some of these names start to become more in that convergence, the Oracles, look, look what's happened to Intel. I mean, you could argue now between US government and NVIDIA, they've essentially now brought Intel into the AI game. So I think you're going to start, I would be shocked if you don't see Berkshire going maybe more down that path and putting some chips, maybe even if it's not just on tangential tech, but on the energy and on the infrastructure. Now, when we see other companies that are AI related, you can look at things like hardware.

11:54So, you can look at Tesla, you can look at companies that are basically taking the AI and they're applying it. I always say Tesla's like teaching machines to see. That seems like a pretty big deal. How do you look at some of those names? Tesla has been one of our favorites for a decade, right? I mean, I believe the autonomous valuation alone is at least a trillion dollars. And I think Tesla, we talk about two trillion as a base, but potentially three trillion in terms of a bull case scenario. Because look, this is not about necessarily just selling cars. I think where everyone's always missed Tesla, many, you got to see on the other side of this.

12:29Now Musk, wartime CEO, focused really on what I believe robo taxis, they will own the autonomous world. I mean, I really think a rounding error is going to be Waymo when it's all said and done because of the scale and scope. And our team saw it in Austin and you're going to continue to build out across San Frankel, eventually here in New York, 30, 35 cities. Next few years, we believe, look, 20 % of automobiles driven will be autonomous. Tesla is changing the world there. And also then you start thinking about things like robotics. Optimus is where Tesla plays a huge role. NVIDIA, because there physical AI play.

13:09So when you think about AI, a lot of times I'll meet people on the street and they'll be like, oh, I tried chat GPT. And I'm like, hey, that is like breadcrumbs before the appetizer, before the actual meal in terms of where we are. Look, we're living in a fourth industrial revolution and that's why big tech, the stronger and the stronger. Do you have other names in terms of AI and hardware that you think are interesting? Yeah. I mean, there's names like, I mean, personally, I think names like, when you look at names like SAP, what they're doing, I think is super interesting. I think on the infrastructure side, Nebesys, Core, we've been core names that we've been bullish on.

13:50Then there's even names like, when I look like InnoData, some of the small cap names, you look at some of the application plays like a SoundHound. I think names like Palantir is actually just to start on the software side, because I think what you have is really it's emerging where the software use cases are now going to start to explode. Snowflake, MongoDB, Elastic is good examples. Now, you could take on the other side of that names like Salesforce, Adobe, because the view is like AI eating their lunch. But I mean, it's about the, they have install bases. I would not bet against Benioff. I would not bet against Lisa Su at AMD.

14:30And I think now you're going to start to see this spread in terms of this AI revolution. So you got this Dan Ives AI ETF. Explain how this thing works. It's all based on our research. Like our research, we have the 30 names, 30 AI winners that we launched in early June. And to me, it was really about institutional, retail, wherever they are in the globe. So many times the investors are like, how do you play AI? And again, it's not just about NVIDIA and Microsoft. It's about playing the bucket software. So we have bucket software, chips, consumer, names like Meta, Alphabet of course, the autonomous play, infrastructure, energy.

15:11So 30 names. Now, those names every quarter, if there's names that I feel like are starting to play more in terms of AI, like in cybersecurity, we just added CrowdStrike because I think everything George and CrowdStrike are doing, they're going to be a huge beneficiary of AI. Then others came off, whether it's acquisitions or maybe ones like Adobe where they're not, you know, right now, like they don't have their sea legs on AI. So it's a - But how do you decide? You wake up and say, hey, I like this one. I don't like this one or research driven or what? 25 years covering tech, right? I mean, I, you know, I've lived, breathed tech.

15:47And to me, it's like, it's talking to engineers. It's out there. Like I said, I'm always traveling around the world, whether it's in Asia, US or Europe. It's trying to understand who are the companies that maybe today you don't see it, but they're going to inflect over the next six, nine, 12 months. Who's the next Palantir? Is it going to the consumer side? Is it going to the energy side? And that's really the goal of this. It's like it's our research and it's maybe sometimes seeing things that others at the time don't see. Because look, if you just get caught up in valuation, one year valuation, you missed every transformational tech stock the last 20 years.

16:24And I always say like the bears, when they're in their caves, they can see AI in the spreadsheets. Now, what do you think about other disruptive technologies like Bitcoin or anything else? Yeah. I mean, like huge, big, huge supporter of Bitcoin, crypto, just was down in DC with Sauer and Tom Lee and a number of other great folks really trying to focus on the Bitcoin reserve in terms of some of the legislation. Look, I believe it's another asset class, as well as there's a convergence now that's happening between AI and crypto. So what's starting to happen when you look at blockchain, the use cases for that are being massively underestimated.

17:06So as a software tech analyst, I view it from two ways. One, there's Bitcoin in terms of just the actual token and just the value, but then there's the use cases that are starting to play out across tech. And I think that's why this is a new age for crypto, it's a new age for AI. And also there's a convergence in terms of my latest venture that I've done with Aiko, because I think there's an intersection right now of AI and crypto. Explain Aiko for the sort of thing. Yeah. So Aiko, I just became chairman last week. And Aiko, our whole goal, It's a treasury company focused on WorldCoin. I'm a believer that WorldCoin, when you think about everything that Sam Altman and Alex have done, that is based on the Orbis scanning technology.

17:56The orbs that you probably have seen, it's iris scanning. That is going to be what I believe the de facto, the single sign on for the future of AI. It's kind of crazy. Well, but to me, it's actually less of a crypto play. the reason I'm not doing this just for a DAC to take a stock from X to Y. To me, I'm doing it because I believe this is the intersection of AI and crypto. This will be a de facto authentication standard. And it's crazy in terms of where we are today, maybe the view, but the reality is in the future with bots, robots, human proof is going to become more and more important. Look, 16 million have already signed up for this.

18:39I mean, we believe it's going to 100 million in the next year. And that's why I'm so excited to be doing this. Bitmine or Tom Lee have been investors among a whole host of great investors because they see the same vision that I do, where it's the future of AI. I believe the future of AI, you can't get there without what I believe is true human proof authentication. Now, 16 million people, they scan their eyeballs, right? What do they get in exchange for doing that? Yes. You have a world app, you actually get the world coin. And if you look at how that's playing out, that's something where we believe this is really going to create a network.

19:19I mean, it's really the early days of PayPal, how it started. You have 16 million. We believe it goes to 100 million the next year. Now in Asia, second biggest advertiser in Japan. How do you get your actual licenses in Malaysia? What they're doing in Thailand? They're lining up for this. This only got launched in the US if you think about a few months ago. So as the orbs expand across cities and the use cases expand, how do advertisers know a human or a bot? How do, from a dating perspective, if it's this, how do you know on social media platforms what's a bot? This is now the future, especially when you talk about autonomous and where the world's heading.

19:59I think Sam, look, they built it, but I'm a core believer. This is Palantir 2022. It's NVIDIA when Jensen was just maybe talking about AI and all the haters were saying, just focus on gaming. It was Tesla when Musk was talking about EVs and the concept of, and everyone's like, you're a car company. You never give me a... And that's why for somebody myself that's been there from the iPhone launch with Steve Jobs to Tesla, to Palantir, to NVIDIA. My perspective is different, right? Because I've been through as an analyst and that's why I'm so excited about doing this. Now, you keep mentioning robots, humanoid robots is a huge thing.

20:41Obviously, Tesla is probably the only public company that's got a robot that you can get some exposure to. Do you think that all the private companies eventually in public in the next like 12 months? Look at Figure AI. I mean, And they just raised a huge round, and they've done some amazing things. I've seen that at their facility, some of the humanoid stuff they're doing. Because the reality is we're not talking 10 years away. We're talking 18 months, two years, where this humanoid robot, Tesla is the leader of it. I think Tesla is the best public play from an optimist perspective, but guess who's supplying all the chips?

21:20NVIDIA. So it speaks to my view on NVIDIA and just overall, investors underestimate because they're looking at it here. You got to see where it's heading over the coming years. And that's why I think robotics autonomous is truly the holy grail when it comes to AI. And then are there any other themes that you're seeing right now that are outside of AI, but still in kind of tech sector that you think is big? To me, it's cybersecurity. I think cybersecurity, everything we're talking about here needs to be protected. And when you look at what's happening, especially on a lot of these use cases, that's where names like CrowdStrike, Palo Alto, Zscaler.

22:06There's a lot of traditional legacy names like Checkpoint, Fortinet, and others. cybersecurity to me is a huge theme that we're focused on. Then another theme that we're usually focused on is just on the consumer side. Meta and Alphabet have been two of our favorite names, Alphabet really being a table pounder. Now you're starting to see sentiment improve so much because of the DOJ settlement. But I think that's something where Alphabet, I view that AI for Google, it's not the massive headwind. It actually creates a tailwind that I think ultimately, look, when it comes to Apple, they're right now on the outside looking in when it comes to AI, but not for long.

22:45Because that's another one where I think they're on the cusp of monetizing install base and that continues to be the theme. What about Facebook's glasses that they just announced? You think those are good? Look, I think that's one where like call it a moonshot project where, I mean, look, hardware is not their core competency, right? I mean, where Zuck is the wartime CEO and really becomes the legend what he's done, it's ultimately, it's on the software. It's on building out the ecosystem. Hardware, I think you'll have some success here and there. It's not necessarily about moving the needles, but I think that's where they're trying to stay one step ahead of where eventually Apple's going to go.

23:26Because where I see it a few years from now, like your phone, we'll have glasses. There'll be sunglasses where you'll be able to see your emails, see your apps. You'll be able to actually, with your eyes, ultimately move and ultimately respond to things. But that's the future. And I think right now what you're seeing in tech, it's an arms race across the board. From NVIDIA to Meta to Alphabet to everyone else, that's why you have 350 billion that's being spent just by big tech alone. And there's every time that people talk about, oh, dot-com bubble, 90. I mean, I was an analyst back in the late 90s and you cannot compare because big tech is ultimately, they're the core spenders here.

24:09And you're talking about companies that have a trillion dollars in the balance sheet, spend 350 billion a year. But that's just started before the sovereigns and the rest of enterprises now start to embrace this. And then when you look at the retail movement, you've mentioned Palantir, Tesla, many of these names, the retail audience has been early if not before the institutional world, right? I'd say before. I mean, if you think about names like Palantir, the amount of hate mail from institutions, no respect this, CARP, they hate it at 12, despise it at 50, yelling from the mountaintops at 75, buildings at 100, and so on, right?

24:48Because I always say institutional, wearing the Peter Millar, It's hard in the spreadsheets when they're in the 15th floor of your New York City office building to get bullish. A lot of times what's happened is on the retail side that have done the work, that have seen the sort of what I believe may be sometimes the future, that's why names like Tesla, Palantir, parts of NVIDIA. I do think retail is millions of new retail investors have come in. They don't get as shaken. and a lot of that is just by nature of institutional relative to some of the sell-offs. If you think like April and May, like April Liberation Day and everything that happened there, retail stood strong.

25:30It was really institutional that sold off massively in those first few weeks of April. And I think, look, but it's starting to change the psychology, right? I think institutional now, even on valuation, you're starting to now see some of those changes. Because when you're in a fourth industrial revolution, you can't just find it on the spreadsheet, but you have to see it around the globe. That's why we spend so much time traveling. Have you been paying attention to the open door stock? Yeah. And Eric, and I am a good friend with Eric Jackson. Yeah. Yeah. So what do you think is happening there?