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Remy Blaire engages in a compelling discussion with Matt Bromberg, the Chief Operating Officer at Wedbush Fund Advisors. The conversation centers around the current state of the U.S. stock market and the transformative potential of artificial intelligence (AI).
“This is a long-term investment strategy and theme that we have very high conviction on.” – 01:35
Remy opens the segment by highlighting the recent performance of major U.S. stock averages, which are currently in positive territory despite a recent downturn. She notes the warnings from the CEOs of Goldman Sachs and Morgan Stanley about a possible market pullback of 10 to 20 percent over the next 12 to 24 months. Despite these concerns, the discussion shifts to the factors fueling the market rally, including the AI trade and hopes for interest rate cuts.
Matt provides insights into the AI revolution, describing the market as being on the “runway, taxiing” toward significant advancements in AI. He acknowledges the hype surrounding AI but emphasizes that the fundamentals remain strong, with reasonable valuations and substantial investments from tech leaders. He expresses high conviction in the long-term potential of AI as a transformative investment theme.
As the conversation progresses, Remy and Matt analyze the recent stock movements of major tech companies, including Meta, Microsoft, Amazon, and Apple. Matt underscores the importance of valuation and the need to separate signal from noise in the AI sector. He points out that 2025 is expected to be a pivotal year for AI-related deals, particularly in the context of national security.
Matt explains that the current deal cycle differs from the speculative tech boom of the late 1990s, as companies are now making thoughtful acquisitions to facilitate innovation. He believes this disciplined approach indicates sustainable market conditions and a clear path to growth.
For retail investors looking to capitalize on the AI trade, Matt identifies opportunities across various sectors, including semiconductors, utilities, and hardware. He references the “Dan Ives AI 30” research report, which focuses on 30 companies driving the AI revolution and investing in future profitability.