00:00 Speaker A
The tech heavy Nasdaq is poised to build on Friday’s rebound, but tech stocks in the hot seat as rumblings grow over concerns of an AI market bubble.
00:06 Speaker A
Cory Johnson, Epistrophy Capital Research, Chief market strategist, joining us now to discuss. Cory, great to see you, especially on set.
00:13 Cory Johnson
Here.
00:14 Speaker A
Here, in the flesh. In the flesh.
00:15 Cory Johnson
In your city. Skyscrapers and everything.
00:16 Speaker A
Let’s talk, uh, big picture.
00:19 Cory Johnson
There’s a Stevie Wonder reference.
00:20 Speaker A
Um, I got it. AI bubble.
00:22 Cory Johnson
Yeah.
00:23 Speaker A
Talk of this. I heard Ken Griffin telling CNBC uh, echoes of a dotcom bubble.
00:29 Speaker A
Mr. Griffin say, David Einhorn, smart guy
00:34 Cory Johnson
Yeah. Great, great short seller.
00:34 Speaker A
throwing red flags on all this AI spending.
00:38 Cory Johnson
They love it.
00:38 Speaker A
What what do you think? Do you hear echoes of a dotcom bubble?
00:42 Cory Johnson
There are there are sounds that sound familiar, like customers trading things other than cash for product, right?
00:49 Cory Johnson
We’ve got we’ve got Nvidia, uh giving selling chips in exchange for commute a compute and both sides maybe recognizing it as revenue. I think these are things that accountants should look at.
00:58 Cory Johnson
Um we see the companies making deals with other companies, making deals with other companies making deals. and sometimes cash is not the thing that is being exchanged. That is something we saw in the .com era.
01:06 Speaker A
And this concerns you?
01:07 Speaker A
You hear echoes?
01:08 Cory Johnson
These sound like the things we heard during that era. We certainly, certainly have some fake AI companies out there. We have companies that put AI in their press releases so they can get boosts in their stock.
01:18 Speaker A
It’s marketing fluff you’re saying.
01:19 Cory Johnson
There there were some of those and I I’m sure I’ve been short some of those companies. I’m currently short some of those companies in my little portfolio. I don’t give investment advice, but I want to, you know,
01:25 Cory Johnson
full disclosure. Um but I strongly believe that the use of AI is only just beginning and that the chips and things that are being sold in the build out of these data centers are being used. They’re not just selling capacity as we saw when dark fiber was being laid for the future of the internet in 1999 and 2000, when it was just there were a lot of accounting scams of companies like Worldcom and Global Crossing and um Quest and others.
01:42 Cory Johnson
These are names you may not even remember or known at the time. But these were these were the big companies of that era, some of them and uh some of them proved to be complete frauds like Worldcom and indeed Enron.
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