RBC CEO on AI, Jobs, SpaceX IPO, US Trade, Energy Demand

Summary

RBC CEO Dave McKay discusses the global risk-on environment, highlighting strong foreign demand for RBC stock and major growth catalysts for Canada. He contrasts the robust US economy with a recovering Canada, and warns that AI will disrupt software business models, creating a valuation challenge. McKay also details RBC's internal AI tech stack built with Nvidia and his bullish view on Canada's energy and infrastructure potential.

• McKay characterizes markets as 'absolutely risk on' with strong appetite for new issues and technology.
• RBC's own stock is attracting the greatest foreign interest in quite some time, signaling demand.
• Canada faces unprecedented decade-long growth from trade diversification, energy exports, and infrastructure spending.
• The US economy is robust, powered by government spending, tech investment, and a resilient consumer.
• AI will ultimately be deflationary but poses near-term valuation risk for software/SaaS companies as it disrupts business models.
• RBC built its own GPU stack with Nvidia, giving it a cost advantage in deploying AI tools and reducing token costs.
• He expects the USMCA trade agreement will not be canceled, though negotiations continue over extending it.
• Canada is positioned to export more oil, LNG, and rare earths, with two new pipelines likely to be announced soon.