Frank Holland (Anchor) 00:00.110
all right you say investors are under estimating microsoft and azure growth what what are we not seeing that you're seeing right now
Dan Ives (Global Head of Tech Research) 00:06.750
i think look the last month we've seen twenty five thirty percent of the deals accelerated i mean you're seeing these use cases explode i think we go into january when they report the quarter and i think as the forecast continue to move higher because i think the stock has a six
Dan Ives (Global Head of Tech Research) 00:21.270
in front of it you know as we go into two thousand twenty six that's really the call here this is a table pounder in my opinion especially on hyperscale or investors given in no respect it's almost a rodney dangerfield the software the way they're treating it
Frank Holland (Anchor) 00:35.990
i love the analogies as always dan the ride in dangerfield i do want to talk about valuations that seems to be one of the things really pressuring the tech trade also some concerns about the AI build out are you saying microsoft is immune to those concerns
Dan Ives (Global Head of Tech Research) 00:48.750
look i get the concerns frank but i mean the reality is all right checks are showing i mean demand supply is what twelve to one you know when it comes to nvidia chips the hyperscale build at only three percent of US companies have gone down the AI path i think when it looks to
Dan Ives (Global Head of Tech Research) 01:03.470
valuation i think investors are underestimating the growth i think street numbers are underestimated here anywhere from fifteen to twenty percent for two thousand twenty six and that's really the call as it plays out i get the white knuckle moments now and the bears sort of
Dan Ives (Global Head of Tech Research) 01:18.350
winning the last few weeks they're not going to win next year i think i i think tech stocks are up twenty twenty five percent in two thousand twenty six all right
Frank Holland (Anchor) 01:27.110
so it's kind of interesting that you're very bullish on azure but also the copilot business have you seen these reports related to salesforce where they're kind of telling people agent force it may actually work better if you don't use gen AI is that a concern that we're
Frank Holland (Anchor) 01:40.030
starting to see companies maybe not seeing the results from AI that they thought they would initially and and whether or not it's a long term narrative we don't know yet that's a longer term story but in the short term could that possibly shake investor confidence in the AI
Frank Holland (Anchor) 01:52.270
trade specifically when we're looking at companies like at microsoft
Dan Ives (Global Head of Tech Research) 01:56.110
yeah it's a great question look i get that with i can name my palantir i mean those customers ROI is way accelerated ahead of what they ever expected so i think it depends on the use cases when it comes to what we're seeing with salesforce mango snowflake look it's an arms race
Dan Ives (Global Head of Tech Research) 02:12.910
playing out and you're going to need to see certain customers see the ROI we talk about two thousand twenty six has to be the year of monetization when it comes to AI and i think we're going to see that and i think that's why it takes step besides obviously i named robotics
Dan Ives (Global Head of Tech Research) 02:29.390
autonomous and true but i think a i come to the consumer
Frank Holland (Anchor) 02:33.390
all right i don't have to have the weekend bernstein saying that nvidia is the cheapest has been in a while and then at twenty five times forward earnings it's a pretty good deal right now do you agree with that take that the fact that the place we're seeing nvidia at right now
Frank Holland (Anchor) 02:44.190
with the bullishness that you have this is a bargain right now
Dan Ives (Global Head of Tech Research) 02:47.750
two fifty at two seventy five is what i see for nvidia i mean frankly look there's one chip in the world fueling the AI revolution it's led by the godfather of AI jensen right and i think what we see here investors you're not even factoring in what's going to happen the china
Dan Ives (Global Head of Tech Research) 03:02.430
market as they get further into that and that's our expectations but look they're playing a different game they're four to five years ahead of anyone else in the market and that's why i think this is a stock that's going to have a massive two thousand twenty six and numbers are
Dan Ives (Global Head of Tech Research) 03:16.110
going to dictate it and i think anytime you see sell offs in this golden buying opportunities in our opinion all
Frank Holland (Anchor) 03:23.070
right what about the index play is this more of a stock pickers year coming up in twenty twenty six or is it more about trying to play the indexes whether it be the triple QS or some of these other really tech focused etfs
Dan Ives (Global Head of Tech Research) 03:33.630
yeah look i mean overall i think it's going to be a great year for because the second third fourth derivative as you point out across AI but i do think it's a winner 's losers i think you have to focus it is more of a stock pickers market specifically who do you own in software
Dan Ives (Global Head of Tech Research) 03:47.470
who do you own in sammy 's nuke and micron sanders some of the memory players what about the infrastructure nebus and some other names so i but i do think we talked about in our ives AI thirty like that's a core part of our thesis it's not just owning the sector you got to own
Dan Ives (Global Head of Tech Research) 04:03.430
the ultimate winners and you got to do the work you can't see AI from the spreadsheets as we always say and that's why you know always on the road in asia and around the world trying to figure out who the winners are