LLMs will be stressed by enterprise systems, says Wedbush's Sherlund - part 1/2
December 19, 2025 • 5m 40s
Melissa Lee (Host)
00:00.070
our
next
guest
expects
the
AI
trade
to
shift
from
broad
enthusiasm
to
a
more
selective
environment
in
the
new
year
wall
street
legend
rick
sherland
is
founder
of
sherland
partners
and
recently
joined
wedbush
investment
banking
as
a
senior
advisor
rick
great
to
have
you
with
us
Melissa Lee (Host)
00:12.590
nice
to
see
you
Rick Sherlund (Founder)
00:13.910
melissa
thanks
for
having
me
and
i
should
caution
you
that
i
no
longer
wear
the
analyst
at
so
i'm
going
to
be
ducking
some
stock
questions
probably
Melissa Lee (Host)
00:22.190
that
is
fine
we
we
want
to
get
into
your
head
rick
in
terms
of
how
you're
thinking
about
this
AI
trade
so
when
you
say
shift
from
broad
enthusiasm
to
being
more
selective
what
do
you
mean
and
and
you
know
what
we
saw
today
in
terms
of
the
enthusiasm
behind
the
hardware
names
Melissa Lee (Host)
00:36.270
versus
some
of
the
others
you
know
does
that
play
into
your
thinking
Rick Sherlund (Founder)
00:40.950
i
think
this
year
has
been
one
of
kind
of
a
monolithic
trade
people
think
of
the
max
seven
it's
now
about
thirty
five
percent
of
the
S
and
P
but
i
think
twenty
twenty
six
you're
going
to
see
that
trade
broaden
out
very
substantially
you've
got
a
whole
universe
of
SAS
companies
Rick Sherlund (Founder)
00:57.710
that
the
the
streets
kind
of
looking
beyond
right
now
they're
some
issues
with
respect
to
is
the
architectural
architecture
flexible
enough
to
accommodate
AI
is
the
business
model
at
risk
so
they've
been
favor
but
i
do
think
you're
going
to
see
some
of
those
come
back
where
Rick Sherlund (Founder)
01:13.910
they've
made
good
progress
on
both
sides
of
adopting
AI
and
the
business
model
changes
you'll
see
a
very
robust
IPO
market
because
there
are
a
lot
of
the
private
AI
companies
that
have
gotten
to
scale
and
some
of
the
SAS
companies
that
didn't
get
out
in
the
peak
of
the
market
in
Rick Sherlund (Founder)
01:30.390
twenty
twenty
one
will
likely
be
coming
coming
to
market
where
they've
made
good
traction
on
AI
and
the
business
model
shifts
M
and
A
of
course
is
going
to
be
a
big
thing
next
year
all
the
big
enterprise
companies
need
to
add
AI
into
their
own
architecture
and
an
easy
way
to
do
Rick Sherlund (Founder)
01:48.750
that
is
through
acquisitions
so
i
i
think
that
all
the
derivative
beneficiaries
of
AI
in
the
streets
and
you
guys
have
been
looking
at
pretty
closely
i
think
there's
a
lot
more
of
that
that
we'll
see
next
year
not
just
within
software
but
broadly
across
the
economy
so
it'll
go
Rick Sherlund (Founder)
02:06.800
ahead
yeah
? (Analyst)
02:07.680
sorry
rick
tried
to
cut
you
off
because
that's
exactly
where
i
wanted
to
go
and
to
better
understand
your
thoughts
and
i'm
not
gonna
ask
you
to
pick
stocks
here
but
when
you
talk
about
enterprise
adoption
and
really
really
the
follow
through
from
the
are
we
talking
though
about
? (Analyst)
02:20.950
the
industrial
sector
and
people
finally
or
you
know
banks
places
that
have
had
a
great
run
industrials
have
rallied
all
year
i
think
on
some
level
because
they
were
already
running
their
business
more
efficiently
are
you
really
talking
though
about
the
platforms
a
little
closer
? (Analyst)
02:32.670
to
home
especially
whether
you
are
talking
about
the
hardware
names
i
certainly
agree
that
software
has
underperformed
here
as
people
have
been
concerned
about
the
hardware
and
i
think
you'll
get
follow
through
but
please
just
clarify
this
this
enterprise
adoption
dynamic
sector
? (Analyst)
02:45.470
wise
if
you
can
Autoscroll