Stephanie Link

Investors are "selling what's working" (NVDA) and "buying what is not" (AMZN). A rotation trade is underway where capital cycles out of high-flying winners into underperforming mega-caps that offer relative value. LONG AMZN as a catch-up trade in the Mag-7 rotation. Continued weakness in consumer spending.

The economy is much stronger than expected, driving broader earnings growth beyond tech. This makes sectors like financials, materials, and technology (both semiconductors and software) attractive.

The economy is much stronger than expected, driving broader earnings growth beyond tech. This makes sectors like financials, materials, and technology (both semiconductors and software) attractive.

"I've been adding to Netflix and Target Synopsis and, and Broadcom actually ahead of what I think is going to be a very positive Nvidia meeting this week." These companies possess strong fundamentals but have been sold off alongside the broader market due to geopolitical fears. Buying these dislocated names before uncertainties clear provides an attractive entry point for a subsequent rally. LONG because these stocks offer strong fundamentals and are positioned to benefit from a relief rally once macro visibility improves. Prolonged geopolitical conflict or a broader market downturn could cause further multiple contraction.

"It's not just Mag-7... It is Energy, some Materials... Oil has rallied 19% year to date." While the war grabs headlines, a broader "Global Reflation" trade is occurring. Under-owned real asset sectors (Energy/Materials) are receiving flows rotating out of high-beta tech, supported by supply constraints and inflationary pressures. LONG. Momentum is favoring hard assets. A quick ceasefire or demand destruction from a recession could crush commodity prices.

"It's not just Mag-7... It is Energy, some Materials... Oil has rallied 19% year to date." While the war grabs headlines, a broader "Global Reflation" trade is occurring. Under-owned real asset sectors (Energy/Materials) are receiving flows rotating out of high-beta tech, supported by supply constraints and inflationary pressures. LONG. Momentum is favoring hard assets. A quick ceasefire or demand destruction from a recession could crush commodity prices.

Snowflake reported 30% product revenue growth, 42% RPO growth, and 125% net retention, yet the stock is being punished with the broader sector. The market is pricing this as a broken growth story, but the fundamentals show sticky customer behavior. Management has shifted to being conservative with guidance, setting up a "beat and raise" cadence. Margins have expanded from 9% to 15%, showing operating leverage. LONG. The sell-off is an opportunity to buy a high-growth asset at a compressed multiple. Continued compression of software multiples due to AI displacement fears.

Stock is down 35% from highs despite growing earnings 24% and revenue 66%. It trades at a 6-turn discount to competitor Cadence (CDNS). As AI chips become more sophisticated, the demand for EDA (Electronic Design Automation) software increases. This is "mission critical" software for chipmakers. The acquisition of Ansys expands their TAM significantly. LONG. A derivative play on the AI chip boom that has been unfairly dragged down. Regulatory hurdles regarding the Ansys acquisition.

Stephanie notes that NVDA has been "sideways for a while" and is only up 2% year-to-date, meaning expectations are low. Simultaneously, industrial companies like GE, Vertiv (VRT), and Quanta Services (PWR) have reported "blockbuster numbers with blockbuster orders" related to the grid and data centers. The "AI trade" is no longer just about the chip; it is about the "whole food chain" (power/grid). If the industrial vendors (GE/VRT/PWR) are seeing massive orders, it confirms demand for the underlying chips (NVDA). Since NVDA hasn't rallied yet (price lag), a good earnings report could trigger a catch-up trade. LONG NVDA as the laggard and LONG the industrial infrastructure plays (GE/VRT/PWR) as the confirmed beneficiaries of spend. If NVDA guidance is weak, the entire "food chain" trade could unravel.

Stephanie notes that NVDA has been "sideways for a while" and is only up 2% year-to-date, meaning expectations are low. Simultaneously, industrial companies like GE, Vertiv (VRT), and Quanta Services (PWR) have reported "blockbuster numbers with blockbuster orders" related to the grid and data centers. The "AI trade" is no longer just about the chip; it is about the "whole food chain" (power/grid). If the industrial vendors (GE/VRT/PWR) are seeing massive orders, it confirms demand for the underlying chips (NVDA). Since NVDA hasn't rallied yet (price lag), a good earnings report could trigger a catch-up trade. LONG NVDA as the laggard and LONG the industrial infrastructure plays (GE/VRT/PWR) as the confirmed beneficiaries of spend. If NVDA guidance is weak, the entire "food chain" trade could unravel.

Stephanie notes that NVDA has been "sideways for a while" and is only up 2% year-to-date, meaning expectations are low. Simultaneously, industrial companies like GE, Vertiv (VRT), and Quanta Services (PWR) have reported "blockbuster numbers with blockbuster orders" related to the grid and data centers. The "AI trade" is no longer just about the chip; it is about the "whole food chain" (power/grid). If the industrial vendors (GE/VRT/PWR) are seeing massive orders, it confirms demand for the underlying chips (NVDA). Since NVDA hasn't rallied yet (price lag), a good earnings report could trigger a catch-up trade. LONG NVDA as the laggard and LONG the industrial infrastructure plays (GE/VRT/PWR) as the confirmed beneficiaries of spend. If NVDA guidance is weak, the entire "food chain" trade could unravel.

Stephanie notes that NVDA has been "sideways for a while" and is only up 2% year-to-date, meaning expectations are low. Simultaneously, industrial companies like GE, Vertiv (VRT), and Quanta Services (PWR) have reported "blockbuster numbers with blockbuster orders" related to the grid and data centers. The "AI trade" is no longer just about the chip; it is about the "whole food chain" (power/grid). If the industrial vendors (GE/VRT/PWR) are seeing massive orders, it confirms demand for the underlying chips (NVDA). Since NVDA hasn't rallied yet (price lag), a good earnings report could trigger a catch-up trade. LONG NVDA as the laggard and LONG the industrial infrastructure plays (GE/VRT/PWR) as the confirmed beneficiaries of spend. If NVDA guidance is weak, the entire "food chain" trade could unravel.

The economy is healthy, led by the consumer and the AI revolution, which is causing a market broadening beyond technology. Seven of 11 sectors had double-digit earnings growth last quarter, but technology took all the credit. The early stages of the AI boom and peak inflation with falling rates support upside in S&P 500 earnings—26% last quarter, likely 20% this year—so the index still has room to run.

Industrials are set to benefit from the broadening market and the AI-driven investment cycle, providing a diversification opportunity alongside technology.

Consumer Discretionary is especially attractive because oil prices are down 40% from their highs, giving consumers extra spending power and improving margins for businesses in the sector.