Alphabet Inc (GOOG)

Yes, capex is on everyone's mind. GOOG's taken a beating, but it's still in a range. Broke the lower part of the range this morning -- just under the support level, but it's sort of coming back. He's not that surprised, as it's a year of transition.

They reported stunning quarter today with their Gemini racking up already 75 million monthly users, but are spending $175-185 nillion in capex, above the street's expected $115 billion. Gemini is winning the AI race so that spend is worth it and will beat its peers.

He owns a large position. A great chart, but not expensive now. They have a lot of irons in the fire, including self-driving cars. You can own this with a long horizon.

It reports Wednesday. It's the best stock in the business. He had seller's remorse and bought this back. Gemini, YouTube and Waymo are drivers.  

Out of the mega-caps, this one is probably in the best position. Really well-positioned on the hardware side (CPUs), and the ad side has a strong moat both in Search and YouTube. This gives them hardware and software exposure. Strong position in quantum computing -- won't move the needle in the short term, but you want exposure and this name is less risky.

Stock's already reflecting a lot of this. Her firm's sweet spot is $1B-100B market cap, so she's not in this name. But thinks it would screen pretty well.

Last spring, shares were beaten up because AI was supposed to eat Google search. GOOG did a great job with Gemini while YouTube is as big as Netflix. The valuation is grown but still okay. Only this and Nvidia were the Mag & stocks that gained last year.

Lots going on with the Mag 7 right now. Both GOOG and MSFT lapped AMZN last year in terms of hyperscalers, AI, and data centres; due to AWS not growing as it was. 

He favours MSFT as a play on data centres and quantum computing. Better that investors choose between GOOG and MSFT as better opportunities than AMZN moving forward.

There were previous concerns over AI affecting its search business but AI has actually been helping its search business. Its latest version of Gemini has had very good reviews. It had a very strong quarter and the cloud business is growing rapidly. Also the ad business is growing in double digits and You Tube is doing very well. She has taken some profits because it is her largest tech holding.

A young investor has lots of time ahead. High-risk and volatile choices are acceptable as we move down the AI highway, as long as the investor is OK with the risk. So GOOG and AVGO are great. Let this investor run -- he's having fun and doing well, so let them stay invested.

GE is also good. HON is a bit more of a neutral conversation, but has its own turnaround coming through.

(Note the shorter timeframe.)  At the time people were dismissing it, so it was trading at a really low valuation compared to the rest of the Mag 7. Has come back on the AI side, and seeing growth on the ad side. 

They have their TPU chips which is perfect for AI. Gemini 3 is being chatGPT and OpenAI handsomly. Third, their search business is wonderful. They generate a lot of cash that they can invest in AI.

He shares the market's concerns on valuation and the AI buildout. There's this massive outlay of money by companies, but no one knows what the returns will be. He suspects returns will be infrastructure-like. But he always believes that if you buy right, the upside will take care of itself.

Absolutely loves this name, he's been invested for many years. To his mind, has the best platform, data, massive profitability, very attractive balance sheet, and AI capabilities. Lots of hidden value in non-core assets, which is starting to be realized. Valuation is more fair today, right round 28x adjusted earnings -- not massively expensive, but still rich. If you own it hold on, but it's not a buy today. Be patient, don't chase. Look for more of a pullback, and he thinks you'll get it.

It was out of favour a year ago because of concern over it being broken up. It could become the most valuable company in the world. It is a vertically integrated AI machine and has the chip design capabilities of Nvidia. Google's provision of AI technology will continue to be in demand even after the bulid-out of data centres lessens.

Really excelled. They control the "pipes", and now the chips (via Tensor, though it's more for software than hardware), and the eyeballs on screens. They have it all. He's trimmed only because his firm never puts more than 10% in any one stock.