Wedbush's Ives: Still less than 10-15% through AI revolution [0:00-5:00]

Look, I mean, obviously these are sort of the tug of war, but when you look at all the numbers that we're seeing, the forward indicators, Dell, you'll get the data layer in terms of what we see with snowflake and others, I mean, we're still less than 10, 15% through this. So, companies, they're going to continue to spend for the next few years, cost will go down. But they cannot just sit there and watch us from the stands, and that's why the markets are telling you, you know, this is still just the early part of this AI revolution. Dan, then circling back to the comments that you're making about the value moving from the AI frontier models, we've not seen that overnight. The pre-IPO valuation of Anthropic, 965 billion, suggesting that, in fact, of the valuation appetite is still there. Why do you think, though, that we should, as investors, be thinking not just about the frontier layer, but moving further down into some of the application areas? Yeah, look, Anthropic, they're the golden child in terms of this AI revolution. Open AI clearly is going to be in this two-horse race, but we've never seen unprecedented growth like this, but it shows what you're seeing from Anthropic. That's just the tip of the sphere. You have to also play the second, third, fourth derivatives, and what we see from the data layer, if you look from Palantir to DataDog to Inodate, look at the snowflake numbers, and now look on the server side, what you're seeing with Dell, it's spreading in terms of the AI monetization, and that's bullish for the market, continues to be our view. Like, well, does AI party start at 9 p.m.? It's about 11, 11, 30 p.m., that party goes to 4 a.m., and I think that's why we're still early days. Dan, how do you think you bought the free cash flows? Because even when it comes to the semiconductor layer, it's really hard to ascertain what is decent value at this point, because on many metrics, a lot of these stocks look overvalued, but it's the free cash flow changes because of this AI adoption story that nobody can handle on, nobody can predict, then what has it been in terms of valuation for the sector? Yeah, look at the great question. When we look out over the next, you got to look out 12 ET months. On the other side, when CapEx ultimately starts to moderate a bit, monetization free cash flow then starts to ram. Once that crisscrosses, I mean, that's how investors are viewing this. It's not necessarily on numbers this year, and it's looking out the next two, three, four years. I think free cash, you're going to have a boom of free cash flow, not just from Max7, from broader tech, as you see the monetization. That's how investors are looking at valuations here. You got to view this as just the first start of what's going to be $4 trillion spend in AI. We continue to view that a lot of talk about bubble. This is in 1996, 1997 moment, not in 1999, 2000 bubble moment. Oh, wait. Hang on down. Does that mean that in two years we approached the 1999 moment, and that's the good thing about this. That's why it's to get the popcorn out, because it's not. Tech stocks are trading 27 times earnings. You're giving me to my physical AI when it talks about robotics, autonomous. You think that was happening in space? It's a true fourth industrial revolution. I don't view it the end of this at that 4am, but that's sort of a moment, and I think you're going to have winners and losers, but it's our, but that's how we look in Nasdaq 30,000, and it's our view, the second, third, fourth derivative, just like we saw this week. We see with Dell, that's showing where the spending is. That was going to be something I was going to touch on with you, Dan, so many big moves this week in the tech space, Snowflake, Micron, Dell, the anthropic funding round. Which to you was the most interesting, the most telling, the most dramatic, that we can really draw something from that tells us about the bigger picture? Yeah, I think it's Snowflake. Because it looked, think about how much, the conversation about SaaS apocalypse, we call it the AI goods trade software, going to get distracted from anthropic. What was happening in the data layer? Snowflake, data dog, inner data, it started obviously with Messie AI, Pound tier. That's showing it's spreading to the soft to the use cases. That to me is really the most important from this week, because of where, what I've used, you know, that was sort of the disconnect, that we started to see monetization and the Snowflake numbers and in that really sort of validated it. So, down to that point, does that mean Snowflake can absolutely not be disrupted now? Look, you can never say never because this is the fastest innovation we've ever seen in technology.