00:00 Julie
And I think that’s why we’ve seen some chipmakers coming together this week. I think investors are now starting to prepare for the earnings of these chip makers and high-tech companies that took a hit over the summer because of the escalation of the war and things like that, to get really strong. So I think it’s going to be really strong. And given historical data, I think the earnings season could even get closer to 30%, which is usually the case. It’s crazy what you’re thinking about.
00:36 Speaker B
Yes, because they tend to win by such a margin.
00:39 Julie
Alphabet’s cloud computing business is something I’ll really be watching because it will be the strongest signal for continued demand for AI. I mean Alphabet, like you said, the Kimi K3 came out and everyone is saying, oh, it’s much better than the amount of money we’ve already invested in other models. So it just changes the game a little bit and I think Alphabet needs to get there.
01:05 Speaker C
I think Julie brought this up. You talked about splitting. Yeah. Apple and Google, why they are kind of superior here is because they are not completely dependent on artificial intelligence based on the artificial intelligence product situation.
01:21 Speaker C
YouTube, even search. I mean Google Cloud, not just yeah, Google Cloud, they’re the same as an acquired podcast, like long-lasting, it’s a long-lasting business, right? They really are. And I think it kind of insulates them from maybe, for example, Gemini 3.5, sorry, it’s taking a little longer than expected. Uh-oh, sorry, maybe we’ll adjust our AI spending here or, you know, our CapX cap. I think that’s what helps companies like Google, and we’ll keep an eye on it.
01:46 Speaker B
Yes, huge base enterprises.
01:52 Julie
Yes, AI aside, they still have a viable business model that has stood the test of time. So I think the AI is just one component and not the whole game. And I think the decline that we’ve seen in memory stocks over the last two months, I think if it made you nervous, the magnificent seven is where you would hide. So we’ve seen them.
02:08 Speaker B
Right. There seemed to be a bit of rotation there. Yeah.