We are starting to see a divergence in the chip trade. Despite the recent slump, our next guest says big tech names like Nvidia and Broadcom still have clear upside. Nvidia and Broadcom are down on the year. In fact, Nvidia and Broadcom really have gone sideways for the last eight months. So, what does it take to get these two stocks back alive?

It's a great question, right? So, you know, the the compute names in AI, Nvidia Broadcom, they've kind of been stagnating a little bit as as as you point out. I think investors have been looking for upside more in the constraint. So like if you go back a year ago, the compute was the supply was really tight, it was in constraint and I think supply is still tight, but but the real constraints have moved to things like semi cap, memory and optical and like that those those stocks have been clearly ripping, right? And it does open up this really interesting divergence because you could ask like like why are they ripping? You know, well, they're going to build all this like wonderful AI stuff and it's like, okay, for who?

Right.

Presumably they're going to be building it for for these other guys, right? In the meantime, you know, numbers have clear upside, the valuations have compressed pretty significantly. I'm I don't personally think that valuations really can compress all that much more. You look at Nvidia broadcom, they're probably on on realistic numbers, they're probably trading at 15 times or even lower. Um and I suspect numbers themselves have pretty clear upside. So my hope is that the the the multiple compression has come to an end. We'll get some earnings upside that can kind of carry them in the near to medium term. And then I then I really think if people can get confident that there is a clear return on these AI investment investments, which is becoming like a core controversy. I'm of the view that there is by the way that there is a return. I think we're getting more and more evidence of that. But I think when investors can really get comfortable that there is a return, that may be your catalyst for for multiples to start to re-rate again.