00:00 Josh
Pillar number one, no surprise, AI, lots of excitement for investors, Tom. He helped to carry out this market in 2025. I’m curious how you see AI trading and trends evolving in 2026, Tom.
00:30 Tom
Good afternoon, Josh. Thanks so much for talking to me and Happy New Year everyone. Yes, then, so we kind of described four pillars of the rally and the most important and the first one as I said is AI. and it really has been a rising tide that has lifted all boats, not just this year, but for the last three and a half years, really. But we think that is changing a little in 2026. and importantly, it does not mean that it will necessarily go, but instead, I think that the type of enthusiasm AI will be much more like Q4 than said Q2 and Q3. and what I mean by that is that it is broken. So we’re not going to have every single tech stock just run away. There will be a selection of winners, say like your Micron, and then maybe some losers, like your Oracle and to some extent Qualcomm. and I’m not saying those stocks specifically in 2026, but more as an example that we’re going to have to be selective as AI matures.
01:41 Josh
Well, let me ask you, if AI is going to be kind of more divided next year, you know, if I’m a viewer or an investor, I’m listening to this. How can I tell, Tom, then the winners and losers in this AI-divided world you are describing?
02:00 Tom
So for me, I look at AI as kind of a maturing cycle, right? And really the first stage was kind of like it was the epiphany stage, right? Oh my gosh, we can do this. And then in order to do that, the first thing we need is semiconductors. And now we’re going to run out and buy all the semiconductors we can and of course Nvidia, Broadcom, Taiwan Semi have benefited fantastically from that. I see it evolving a bit now in those companies that are really taking the lead. Probably my top AI pick for 2026 is Google. I like Gemini 3. I think their search advantage gives them kind of a huge uh chip in the game against Open AI. So I like Google from a search point of view. I also like the memory because that’s kind of the next stage of this data center build, right? We need computing power. Well now all of a sudden we need all the memory to power everything we need. So I see it more infrastructural games that evolve uh towards memory from the infrastructure side, but then also from a type of hyperscalers, I really like Google uh with YouTube and then with Gemini 3.