CNBC's "Fast Money" Can Tech’s Growth Plans Keep Fueling The Rally? And Losses From California’s Wildfires 1/24/25
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Jan 24, 2025 Join Rebecca Patterson, former chief strategist at Bridgewater, as she dives into the tech sector's current momentum. She discusses how major players like Meta and Nvidia are shaping market dynamics and the impact of their AI investments. The conversation also addresses the economic fallout from California's wildfires and its implications for the housing market, highlighting the rising costs for displaced residents. Patterson's insights offer a compelling look at the intersection of tech growth and macroeconomic trends.
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Tech Spending and Market Rally
- Tech spending on AI infrastructure is likely to fuel the market rally.
- Meta's investment in AI and their record high stock price supports this.
CapEx and Inflation
- Capital expenditure (CapEx) by tech companies can be deflationary long term by increasing productivity and efficiency.
- However, short-term infrastructure building might be inflationary due to material and labor demands.
Hyperscalers' CapEx and Competition
- Hyperscalers like Meta are increasing CapEx due to fear of competitors outpacing them in AI development.
- This competition benefits chip makers like Nvidia.