RiskReversal Pod Why The AI Trade Is Alive & Thriving with Gene Munster
Jul 15, 2025
Gene Munster, Managing Partner at Deepwater Asset Management, shares his expertise on tech investments and market trends. He discusses whether the recent declines in the S&P 500 and NASDAQ provide a buying opportunity for tech stocks. The conversation dives into AI's resilience, particularly highlighting Microsoft's growth after investing in OpenAI. Munster also addresses Apple’s management strengths, Tesla’s integration with xAI, and the contrasting performance between hardware and software in the AI sector, painting a dynamic picture of today's tech landscape.
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Episode notes
AI Bucks Market Trends
- The April selloff felt like a strong buying opportunity, especially in AI-related tech stocks.
- AI fundamentals could buck the broader market trends despite widespread declines.
More Manageable Earnings Expectations
- Expectations are now more realistic for AI stocks entering earnings, with likely smaller moves of around 5%.
- Investors focus on longer-term guidance beyond the immediate quarter, especially capex and cloud growth.
Microsoft's Steady but Limited Growth
- Microsoft offers steady, reliable growth but lacks upside beyond ~14% revenue and earnings growth.
- Because of limited growth potential, its risk-reward ratio is less attractive than other large-cap AI tech stocks.