Quick Read – The Stocks: Alphabet (GOOG) trades near new highs with a sub-30x P/E multiple while monetizing AI through its frontier-level models and DeepMind research capabilities. – The Trump-era rally is fueling market gains amid geopolitical tensions and inflation concerns,…
t mega-cap tech names like Alphabet and Microsoft offer genuine AI monetization stories rather than parabolic speculation, making them relative value plays versus semiconductor stocks that appear overheated. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and Google wasn’t one of them. Get them here FREE
The Trump-era rally is alive, well, and could bring markets to more elevated heights as we move through the summer months. Undoubtedly, not everyone is bullish on stocks at fresh highs, especially since the war with Iran could drag on for some weeks or even months longer. As a potential inflation wave clashes with an AI wave, though, there’s a strong case for both the bulls and bears.
With Michael Burry recently warning that it’s feeling like the lead-up to the dot-com bubble while encouraging profit-taking in tech names that have already had the opportunity to go parabolic, it’s worthwhile to take a more cautious but optimistic approach. Of course, taking profits after parabolic runs is only good practice, especially given the gravitational force that is the reversion to the mean. While I don’t share Burry’s bearishness, especially regarding AI, I do think that it’s tough to deny that the semis are looking overheated, while some of the Mag Seven names are acting as obvious but still powerful relative value plays.