00:09 Julie
Third quarter earning season is underway with the biggest tech names slated to report later in the month. It’ll of course give us the latest read on just how much companies are spending and making on artificial intelligence, which has driven markets to repeated record highs. Here with more on what to watch is Dan Ives, Wedbush Securities managing director and Global Head of Technology Research. Dan, it’s great to see you, as always. Um, so we’re going into earning season for this company for these companies at a time where there is this debate of valuations. There is this debate about the so-called circular economy, how much they’re all sort of spending on each other. Um, what are you going to zero in on in the in these earnings reports?
00:49 Dan Ives
Yeah, I look, Julia, I’d say, I mean, the street’s still massively underestimating what this tech cycle is going to look like. I think it’s an AI super cycle. And I think this 3Q earnings is going to be much more of a validation moment in terms of not just for chips but for software. And I think the broader build out. Look, it continue the bears in hibernation mode. They’ve missed the last two and a half years. and they’ll continue to miss this bull market that I think has another two years ahead of it.
01:13 Julie
You know, it’s interesting because I haven’t talked to that many bears, right? The bears, the straight up bears are hard to find on this stuff. It’s more the message that maybe you should start to diversify a little bit. It’s not that you should sell necessarily, maybe take a little bit of profits and put it in some of the smaller companies in the space, put them outside of AI entirely because maybe we’re in a little bit of a a breathing period here. What do you think of that argument, Dan?
01:40 Dan Ives
Look, I get it. I mean, but my view is we’re in the second inning of a nine- inning cycle. So, I mean, to to peel away from an AI perspective, talk about people have peeled away from AMD over the last, you know, a month ago, or Oracle six months ago, or Nvidia a year ago. See my whole point is like, the street’s under estimating what this cycle is going to look like. And I think ultimately in the next one, two years, numbers are maybe 20, 30% underestimated. And I think that’s why three Q earnings is just going to be more validation showing the use cases are exploded.
