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Meta Platforms (META) and Microsoft (MSFT) latest earnings results prove the Big Tech giants are continuing to invest in AI data centers. Given the recent market volatility around AI names, should investors be rethinking their artificial potential stakes and start repositioning their portfolios?
Head of Citizens JMP Securities Mark Lehmann sits down in-studio with hosts Josh Lipton and Julie Hyman to note that while the week has been tumultuous, tech spending remains robust and the winners in AI are still “winning bigger.”
Lehmann notes that skepticism around tech valuations is nothing new: “I have heard that tech is overvalued since I started on Wall Street 30 years ago. I really have, and this week is a good example of that. But, you got to be prepared and, also, things do change. Things do change."
Regarding AI investments, Lehmann explains the thematic trends are still relevant. He questions Nvidia’s (NVDA) defensibility, stating, “I think it calls into question whether that moat and that premium multiple that they've earned. Now, they've grown into their multiple by earning as much as they have. And, we'll have to wait another four weeks to see what they have to say, and I think they'll have a lot to say."
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This post was written by Josh Lynch