00:00 Speaker A
Let's look at beautiful seven shares. Still go to the advantage today after this week together with the wider market recovery. Nvidia is back in a positive area for the year with Meta and Microsoft that is floating around the flat line so far. Now with us, Kimberly Forrest, founder of Boca Capital Partners and Chief Investment Officer. Kimberly, always great to have you here. To what extent do you think this most recent rally is a signal of a comeback for technology for the year?
00:36 Kimberly Forrest
Certainly. Well, it's really hard to separate yourself from, well, the thing that grows, and that would be technical. Uh, you know, it is, uh, there are parts of the market that are cleared away, but I think everyone acknowledges that AI is one thing, and, eh, the companies that are in the beautiful seven, not only benefit from it, Nvidia, I am against you, but also it would be Microsoft, Amazon, Meta and Google. So I think that because AI is still at the forefront of the most growth -oriented, and certainly momentum -oriented investors, that's why they love them.
01:48 Speaker B
And so, because we are still waiting for, of course, the AI poster and the semiconductor trade and really the most beautiful member of the Mag 7 Nvidia to report income. Wat kunnen ze zeggen dat ofwel de rally verder stolt, tenminste terug om zelfs in de loop van het jaar te breken, vooral wetende dat Nvidia en Apple twee van de grotere namen waren die sommige van de dalingen in pre, ehm, um, weet je, in wezen waren, in wezen vooraanstaande voorgangers van de markt die groter daalden, uh, dat we aan het begin van 2025 hadden gezien.
02:45 AM Kimberly Forrest
Certainly. Well, I think the AI trade is always in doubt, because many people have huge amounts of hope for what it can actually do. And, eh, if you allow me, I will probably be a bit of a wet blanket about it because of the newest announcement of meta that would not roll out, eh, eh, for non -specified reasons, right? They just said, well, it's not ready. We are going to postpone it, you know, a few months, bla, bla, bla. But I think AI is really a few strength for the future, and people really want exposure to that. So, you know, why not? Why don't you stack in the companies that can benefit from it or can come to it and actually pay for it? Oh, back to Nvidia. Sorry, I get lost there. Nvidia must say, uh, that are chips and that there are currently no other competitors because everyone, if you make a semi, wants to replace Nvidia as the preferred ship. So those are the two reassuring, eh, messages that Nvidia has to say.
5:06 AM Speaker A
Well, Kimberly, I know you have a special interest in LLMS and Meta's colossus, but I want to bind it back to Nvidia to the point that you make here, because if we as investors cannot really get clarity about who has the best LLMs, what the LLMS is, Aka Nvidia is. How do you judge that framework for investors?
6:02 AM Kimberly Forrest
I think that will work to the point where it is not, because what this is is a momentum investment, right? And I love it, I love the moment to invest when it works. But this is what the problem is. The best buyers of Nvidia play this game that they continue to invest at the same pace that their competition is because a minute of them gets their foot from the accelerator pedal, they become irrelevant. Don't just lose first place. We are talking about irrelevance, right? So that is why Dan's argument works. Now I don't say they would work together, but they may come to a point where they say, oh gee, the promise of, um, you know, really autonomously learning where we don't have to have human governors there. They just know the truth. Do you know, if that can be formulated or, you know, programmed, will we say, maybe this may be a winner forever as long as I am going to be in this company, right? But I don't think that's the case. So I think there will be bumps under the road where it will ask for lower investments, and due to lower investments that you do not need every last Nvidia chip that comes from the line.
08:59 Speaker B
What do you believe about beautiful beautiful 7 performance compared to the rest of the 493 in the S&P in your prospects?
09:14 Kimberly Forrest
I think it's deserved. They show growth. As if I am a growth with a reasonable price investor, so I do not necessarily have much of the beautiful 7. But I know this, Wall Street rewards growing over time, and these companies have proven year after year that they have a kind of magical formula to get all the customers they need, and it is not directly in many of their cases, right? Because Google and Meta do not pay the users for it. The advertisers do that. But as long as you can pay customers to keep paying, they will win.
