00:00 Speaker A
this OpenAI AMD news, AMD shares ripping higher as a result. Zoom out here for us. Doesn’t this send an ultimate signal that if if you think we are in an AI bubble, maybe this isn’t that isn’t actually happening. If investors are willing to pay up more for AMD on news like this, doesn’t it send a message that perhaps the AI trade is not done yet?
00:30 Speaker B
Uh good morning. And yes, I don’t think we’re in a bubble yet. You know, the multiples aren’t seemingly like you have in 2000 where the S&P was roughly around 34 times earnings. I mean, you’re still roughly 25 to 27 times. But yeah, it’s getting lofty. I mean, I think the AMD news tells you that there’s an appetite here. And as long as you have the Fed in the background, I think willing to cut interest rates and an administration wanting to cut interest rates, there’s no reason for this appetite to slow down in the short term. I do think if earnings start to show a peak and a deceleration and growth, people will start re-examining. But you can see by the action in the market right now, the appetite is strong, and I think it will remain strong until that object hits something, until something changes people’s point of view. But no, I don’t think we’ve peaked just yet, but we are very close.
01:21 Speaker A
Uh it is interesting, Inez, to see so many of these new tie-ups in the AI infrastructure space. You have AI, you have AMD now with OpenAI. You have Nvidia uh linking up with Intel, the government with Intel. I there’s just there’s so much activity going on right now.
01:41 Inez
Yeah, and there’s also concerns about the circular sort of structure to everything to all these companies that are linking up together in uh these uh ties. But I just want to underscore, I mean, what we’re seeing with Nvidia right now, uh 38% uh up 38% at the open, adding $101 billion in market value. I mean, this is definitely the sort of shot in the arm that Nvidia needed, the boost that that Nvidia needed as it uh competes in this uh AI chip space as well. And just to underscore that, this is the second largest rise for AMD in the last 40 years, the second largest one-day rise. But certainly this underscores the sort of the AI uh investment, the capex that is being spent, the the amount of investment in AI that is driving really the economy forward.