Fabiana Fedeli

The market is wrongly painting all software stocks as casualties of AI. Many software companies have valuable customer data that will not move to public AI clouds, and some are productively adopting AI themselves. The sector currently trades as one, creating opportunity to pick undervalued winners among the so-called 'AI losers.' The speaker has been adding to software stocks.

Emerging-market local-currency bonds offer high real yields, stability, orthodox central banks, lower debt than developed markets, and higher growth expectations, making them a long-term holding.

Despite a recent pullback caused by retail exuberance, the structural story for gold remains intact. Central banks continue to see gold as an alternative to the dollar for reserves. The excess froth has been washed out, and the speaker stays long gold as a core holding.

Applied Materials (AMAT) surged 10% on upbeat sales forecasts driven by demand for AI and memory chips. Capgemini is pivoting to "sovereign AI" infrastructure. The market is struggling to pick winners in software ("losers" are being sold off), but the "enablers" (hardware and infrastructure) have clear visibility. Capgemini benefits from the specific European push for "sovereign" AI and IT independence. LONG. Focus on the "picks and shovels" (Enablers) rather than the software applications which are vulnerable to disruption. Overvaluation in the semi-equipment space if AI capex slows.

Applied Materials (AMAT) surged 10% on upbeat sales forecasts driven by demand for AI and memory chips. Capgemini is pivoting to "sovereign AI" infrastructure. The market is struggling to pick winners in software ("losers" are being sold off), but the "enablers" (hardware and infrastructure) have clear visibility. Capgemini benefits from the specific European push for "sovereign" AI and IT independence. LONG. Focus on the "picks and shovels" (Enablers) rather than the software applications which are vulnerable to disruption. Overvaluation in the semi-equipment space if AI capex slows.

Applied Materials (AMAT) surged 10% on upbeat sales forecasts driven by demand for AI and memory chips. Capgemini is pivoting to "sovereign AI" infrastructure. The market is struggling to pick winners in software ("losers" are being sold off), but the "enablers" (hardware and infrastructure) have clear visibility. Capgemini benefits from the specific European push for "sovereign" AI and IT independence. LONG. Focus on the "picks and shovels" (Enablers) rather than the software applications which are vulnerable to disruption. Overvaluation in the semi-equipment space if AI capex slows.