Ideas
Europe banks, industrials on earnings pickup
Europe offers more attractive valuations than the U.S. with improving earnings growth, and Seema Shah favors European banks and European industrials as part of a broader non-U.S. diversification away from concentrated U.S. tech exposure.
Asia tech offers cheaper diversification
Asia tech trades at cheaper valuations than U.S. tech and looks like a different flavor of the tech story, so it can offer beneficiaries and some diversification, though it is not full diversification from the AI and tech theme.
Direct lending offers higher-quality yield
One area she likes is direct lending because it is typically higher quality and has more exposure to defensive sectors such as utilities.
Alphabet risk/reward less attractive now
Alphabet has strong AI, cloud, search, and custom-chip momentum, but its massive step-up in AI capex makes the risk/reward less attractive than in the past two to three years, and he prefers other stocks.
Large alt managers offer solid environment
Software fears have indiscriminately hit private-credit-exposed alternative managers, but the business environment remains solid with double-digit inflows and earnings growth, more market openings and utilization, and large managers like Ares, KKR and Blackstone can provide unique scale, longer-term structures and asset-backed finance.
Private credit offers thin compensation now
Private markets are growing and hard to avoid, but private credit offers the tightest post-COVID yields with accumulated leverage and lower incremental compensation, so selection of managers and risk is critical.
Industrial real estate benefits AI buildout
AI infrastructure and onshoring require high-power manufacturing, warehouse and logistics space that is undersupplied, creating a new phase for commercial real estate; high-powered properties have returned more than 10% over the last year.
Infrastructure is preferred diversification play
J.P. Morgan Asset Management is focused on infrastructure as a real-asset way to diversify away from the tech trade as AI-driven buildout increases demand.
Data centers carry tech obsolescence risk
Data centers carry significant tech obsolescence risk because about two-thirds of value is in rapidly changing tech and hardware; J.P. Morgan Asset Management does not own data centers and prefers to diversify via real estate and infrastructure.
Semis benefit despite software pain
The software-led selloff spilling into semiconductors is misplaced because chips enable the AI disruption; he is positive on chipmakers, especially parts of the space that underperformed, and notes memory and semi-cap equipment suppliers have done well.
Broadcom is top TPU beneficiary
Broadcom is the biggest beneficiary of Alphabet's $185 billion capex plan because it supplies Google's custom TPU chip, and the custom-silicon trend is broader across hyperscalers like Meta.
Nvidia remains dominant AI compute standard
Nvidia should remain the dominant AI compute standard because its flexibility and software ecosystem make it hard for most customers to switch; Google's TPU is a notable exception but the competitive threat is unlikely to become much more significant, and Nvidia has underperformed.
Yield curve steepener is crowded trade
Kevin Warsh may shift the Fed to a more forward-looking reaction function, using AI disinflation to justify cuts even with current inflation, while a smaller balance sheet implies more Treasury supply and higher long-end yields; the steepener trade is crowded, and balance-sheet shrinkage will likely be slow.
Software is oversold, set to rip
The market is pricing a doomsday scenario for software; AI disruption is a real headwind, but the implied 15-20% number cuts are too harsh, software is oversold, and a huge M&A cycle could catalyze a sharp rebound.
Small caps benefit from broadening
The broadening trade has fundamental underpinnings: earnings growth for the Magnificent Seven is decelerating while the other 493 and small-cap indexes like the Russell 2000 have improving and more stable trajectories.
Energy, industrials, materials benefit cyclical broadening
The AI buildout is benefiting more cyclical sectors such as energy, industrials and materials, which supports the broadening-out trade.
Non-US equities benefit cyclical broadening
The broadening-out trade should extend outside the U.S. because more cyclical areas dominate those economies, unlike the tech-dominated U.S. economy.
Software needs revenue proof before buying
Software is deeply oversold and some selling looks unjustified, but investors should be very picky and need proof of revenue acceleration before stepping back in.
AI capex benefits semiconductors
AI capex is necessary and still increasing, and from an infrastructure standpoint that spending should benefit semiconductors.
Financials have deregulatory cyclical tailwinds
Financials face regulatory overhang, but the unchanged stress capital buffer, deregulatory agenda, cyclical upswing, M&A cycle and industrial capex financing create tailwinds.
This Bloomberg Markets video, published February 05, 2026,
features Seema Shah, Mark Mahaney, Paul, Tom Kennedy, Chris Caso, Jordan Rochester, Dan Ives, Liz Ann Sonders, Abby Yoder
discussing EUFN, European industrials, Asia technology, BIZD, GOOG, ARES, KKR, BX, INDS, XLRE, PAVE, DTCR, SMH, AVGO, NVDA, U.S. Yield Curve Steepener, IGV, IWM, XLE, XLI, XLB, Non-U.S. equities, XLF.
20 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Seema Shah,
Mark Mahaney,
Paul,
Tom Kennedy,
Chris Caso,
Jordan Rochester,
Dan Ives,
Liz Ann Sonders,
Abby Yoder
· Tickers:
EUFN,
European industrials,
Asia technology,
BIZD,
GOOG,
ARES,
KKR,
BX,
INDS,
XLRE,
PAVE,
DTCR,
SMH,
AVGO,
NVDA,
U.S. Yield Curve Steepener,
IGV,
IWM,
XLE,
XLI,
XLB,
Non-U.S. equities,
XLF
