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Let's take a look at Magnificent Seven stocks. Still moving to the upside today after rallying this week along with the broader market recovery. Nvidia is back in positive territory for the year with meta and Microsoft hovering around the flat line year to date. Joining us now, Kimberly Forrest, Boca Capital Partners founder and chief investment officer. Kimberly, always great to have you on here. To what extent do you think this most recent rally is a signal of a comeback for Tech for the year?

Sure. Well, it's really hard to divorce yourself from, well, the thing that's growing, and that would be tech. Um, you know, it's, uh, there are parts of the market that have languished, but I think everybody acknowledges that AI is a thing, and, um, the companies that count, which are those in the Magnificent Seven, are not only benefiting from it, Nvidia, I'm talking to you, but also driving it, and that would be Microsoft, Amazon, meta and Google. So I think because AI is still in the forefront of most growth oriented, and certainly momentum oriented investors, that's why they love them.

And so, as we're still waiting for, of course, the poster child of AI and the semiconductor trade and really the most magnificent member of the Mag 7 Nvidia to report earnings. What can they say that either further solidifies the the rally at least back to break even over the course of the year, especially knowing that Nvidia and Apple were two of the larger names that had actually led some of the declines in pre, um, you know, essentially been predecessors to the market decline more broadly, uh, that we had seen at the start of 2025.

Sure. Well, I think the AI trade is always in question because a lot of people have tremendous amounts of hopes on what it can actually do. And, um, if you let me, I'm probably gonna be a little bit of a wet blanket on that because of meta's latest announcement that, um, behemoth would not roll out, um, for unspecified reasons, right? They just said, well, it's not ready. We're gonna delay it, you know, couple months, blah, blah, blah. But I think that AI really is a few force for the future, and people really want exposure to that. So, you know, why not? Why not pile into the companies that could benefit from it or making it and actually get paid for it. Oh, back to Nvidia. Sorry, I I got lost there. Nvidia needs to say, uh, that its chips are in demand and that there are no other competitors currently because everybody, if you make a semi, wants to replace Nvidia as the preferred chip. So those are the two comforting, um, messages that Nvidia has to say.

Well, Kimberly, I I know that you have a particular interest in LLMs and meta's behemoth, but I I wanna tie it back to Nvidia to the point that you're making here because if we as investors can't really get clarity on who's gonna have the best LLM, what the timelines are going to look like, the argument I've heard from sources like Dan Ives is you buy what's juicing the LLMs regardless, aka Nvidia. How do you rate that framework of thinking for investors?

I think that's gonna work right up to the point where it doesn't because what this is is a momentum investing play, right? And I love, I love moment to investing when it's working. But here's what the problem is. The top buyers of Nvidia are playing this game that they are gonna continue investing at the same rate their competition is because the minute one of them takes their foot off the gas pedal, they're going to become irrelevant. Not just lose first place. We're talking irrelevancy, right? So that's why Dan's argument works. Now, I'm not saying they would collude, but they might get to a point where they say, oh gee, the promise of, um, you know, truly autonomous learning where we don't have to have any human governors on there. They just know the truth. You know, if that can be formulated or, you know, programmed, we'll say, maybe maybe this is a winner in perpetuity for as long as I'm gonna be in this business, right? But I don't think that's the case. So I think there's gonna be bumps along the way where it will call for lower investment, and by lower investment that you don't need every last Nvidia chip that's coming off the line.

What do you believe about magnificent magnificent 7 performance relative to the rest of the 493 in the S&P in your outlook?

I think it's merited. They're showing growth. Like I am a growth at a reasonable price investor, so I don't necessarily own a lot of the Magnificent 7. But I do know this, Wall Street over time rewards growth, and these companies have proven year after year that they have some kind of magic formula to get whatever customers they need, and it's not direct in many of their cases, right? Because Google and meta, the users don't pay for it. The advertisers do. But as long as you can get paying customers to keep paying, they're gonna win.