00:00 Speaker a
Let's take a look at the huge seven stocks. After this week's rally, along with the broader market recovery, it is still in the upside today. NVIDIA is back in the positive territory of the year again, with Meta and Microsoft hovering around the flat line so far. Join us now, Kimberly Forrest, Founder and Chief Investment Officer of Boca Capital Partners. Kimberly, it's always great to bring you here. To what extent do you think the recent rally is a signal of a comeback that year?
00:36 Kimberly Forrest
certainly. Well, it's hard to get yourself out of what you're growing up, it's going to be technology. Well, you know, um, um, some parts of the market are already in trouble, but I think everyone admits that AI is a thing, um, those companies counting, those are outstanding seven, not only benefiting from it, not only Nvidia, I'm talking to you, but also driving it, but Microsoft, Microsoft, Microsoft, Amazon, Amazon, Amazon, Meta and Google. So, I think because AI is still at the forefront of the most focused growth, of course it is for momentum investors, and that's why they love them.
01:48 Speaker b
So, as we are still waiting for poster kids in AI and semiconductor trade and are indeed the most outstanding members of Mag 7 Nvidia to report the gains. What they can say is that either further consolidate the rally can even break even in the year at least, even in the year, especially knowing that Nvidia and Apple are two of the two larger names actually lead to the former, um, um, you know, essentially a more widespread decline in the market, uh, we've already dropped more broadly in 2025.
02:45 Kimberly Forrest
certainly. Well, I think there is always a question about AI trade, because a lot of people have great hope for its actual capabilities. And, well, if you let me, I might be a little wet blanket for Meta's latest announcement, um, behemoth won't be out for unspecified reasons, um, behemoth won't be rolling out, and I might have a little wet blanket for that. They just said, OK, not ready yet. We're going to delay it, you know, how many months, wait, wait. But I think AI is indeed the few forces in the future, and people really want to get in touch with that. So, you know, why not? Why not pile into companies that can benefit from it or make it and actually get paid. Oh, back to Nvidia. Sorry, II got lost. Nvidia needs to say, well, its chip demand is ongoing, and there are no other competitors at the moment, because everyone (if you are in the semi-final) wants to replace Nvidia as the chip of choice. So, here are two gratifying messages that NVIDIA must say.
05:06 Speaker a
Well Kimberly, second I know you have a particular interest in the behemoth of LLMS and Meta, but II wants to connect it with NVIDIA to the point you are going to do here because if we as investors won't really be clear about who has the best LLM, then what the timeline will be, what I'll hear from sources like Dan Ives, what you'll hear from Dan Ives is your pointless stuff, what you can buy, what this is. How do you evaluate the thinking framework of investors?
06:02 Kimberly Forrest
I think this will be until it can't be done because it's a driving investment, right? I love, I love the moments of investing at work. But that's the problem. NVIDIA's top buyers are playing the game and they will continue to invest in their competitors at the same rate as one of them takes their bike off the gas pedal and they will become irrelevant. Not only did he lose the first place. We're talking about irrelevant things, right? That's why Dan's argument works. Now, I'm not saying they'll collude, but they might say, they're like, oh, oh, um, um, you know, really autonomous learning, we don't have to have any human governors there. They only know the truth. You know, if that could be made, or we would say, maybe as long as I would be in this business, maybe it was a permanent winner, right? But I don't think that's the case. So I think there will be bumps along the way, requiring lower investments, and with lower investments you don't need all the Nvidia Chip to show up.
08:59 Speaker b
How do you believe in the performance of S&P's grand 7 in the remaining 493 of your prospects?
09:14 Kimberly Forrest
I think it's worth it. They show growth. Just like I'm a growth in a reasonable price investor, so I don't necessarily have a lot of grand 7s. But I do know that Wall Street has grown rewards over time, and these companies prove year after year that they have some kind of magic formula to get whatever customers they need, and in many cases they are not direct customers, right? Because of Google and Meta, users do not pay for this. Advertisers do this. But as long as you can pay customers to keep paying, they will win.
