Look beyond tech for AI opportunities
Tracy McMillan of Wells Fargo argued against chasing high-priced technology and AI names, pointing instead to better relative value in industrials, utilities, and financials.
The argument
Following a massive run in AI-related equities, McMillan noted that there is room for disappointment—as demonstrated by Broadcom's market reaction—and advised looking to other sectors participating in the broader economic expansion.
The thesis, stress-tested
✓ What validates it
- ✓Earnings misses or conservative guidance from major semiconductor and tech firms
- ✓Inflows shifting from technology ETFs to industrial and utility sector ETFs
▸ Risks discussed
- ▸AI and mega-cap tech names continue to rally on strong earnings
- ▸Industrials and utilities fail to capture AI-related capital expenditure
Hear it yourself
"unemployed increasing. Betsy, it's really hard for us to judge at the moment just how tight this labor market actually is. As you reflect on that, we've had this negative supply shock to the labor market. We haven't had the entrants come into the supply pool, so to speak, because of these tighter regulations around immigration and the enforcement of the southern border. Betsy, with that in mind, how do you gauge how loose or supply how loose or tight this labor market actually is right now? You know, I I think"
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