Name: Google is well positioned amid tech stock selloff, says Futurum Group CEO Daniel Newman
Uploaded: 2026-02-04T22:47:54+00:00
Duration: 278 s

Speakers

Daniel Newman — Host, Crypto Banter

Summary

Daniel Newman of The Futurum Group argues Alphabet is well positioned in the tech selloff, describing it as an AI infrastructure utility with strong cloud, search, YouTube, and self-funded capex. He rejects the zero-sum AI chip narrative, saying hyperscalers will keep buying NVIDIA and AMD while developing custom chips, and sees the selloff in AI infrastructure such as energy, memory, and compute as overdone. He also favors core 'rules and rails' software like Oracle and ServiceNow, while warning that AI will disrupt some replaceable software.

Daniel Newman says Alphabet is becoming an AI infrastructure utility and remains well positioned despite the tech selloff.
He expects Google Cloud to grow 35% again and sees Gemini, Search, and YouTube addressing competitive concerns.
He argues the AI buildout continues, with memory tight through 2028-2029 and hyperscalers needing NVIDIA and AMD capacity.
He calls the selloff in AI infrastructure, including energy, memory, and compute, overdone and says AI is an internet-like trend.
He views Amazon, Microsoft, and Meta as core AI platforms and staples.
He prefers core 'rules and rails' software such as Oracle and ServiceNow over replaceable software.
He notes rotation into Walmart and Starbucks amid indiscriminate selling.

Ideas

Daniel Newman Host, Crypto Banter 0:26

Alphabet is an AI infrastructure utility

Alphabet is becoming an AI infrastructure utility because it owns both the models and the underlying parts that run them. It has executed well: Google Cloud is expected to grow 35% again, Search and YouTube remain strong, Gemini has answered competitive concerns, and the company can fund its large capex from its own cash flow. The tech selloff is indiscriminate, but Alphabet should not be thrown out with the bathwater and looks very good.

Daniel Newman Host, Crypto Banter 1:52

Oracle is core rules-and-rails software

Oracle was a concern because of how it would fund large AI-related investments, but it successfully raised equity and debt, demonstrating insatiable demand. He also views Oracle as a core 'rules and rails' software business whose daily management and updating functions make it less likely to be disrupted by AI.

Daniel Newman Host, Crypto Banter 2:08

Mega-cap AI platforms are core staples

Enterprises are building on the large AI platforms, and Amazon, Meta, and Microsoft are core technologies and staples rather than the replaceable software that AI may eat. They have the scale and cash generation to keep investing, and the AI buildout is not a zero-sum game.

Daniel Newman Host, Crypto Banter 2:30

NVIDIA is a cheap AI buildout winner

NVIDIA is cheap at just over 20x forward earnings, and the AI buildout will continue through at least 2028-2029, with no memory relief and hyperscalers needing all available capacity. The fear that custom chips will displace NVIDIA is a zero-sum mistake: Google, Amazon, Microsoft and others will build their own chips but still use NVIDIA and AMD. He would be long both Alphabet and NVIDIA.

Daniel Newman Host, Crypto Banter 3:29

AMD benefits from AI capacity demand

Hyperscalers developing their own AI chips will still need to use NVIDIA and AMD because the AI buildout requires all available compute capacity. AMD is therefore another beneficiary as the zero-sum chip narrative proves wrong.

Daniel Newman Host, Crypto Banter 3:32

AI infrastructure selloff is overdone

The selloff in anything tied to AI infrastructure, including energy, memory, and compute, is overdone. The AI buildout will continue for years, memory supply may not ease until 2028-2029, hyperscalers need all capacity, and the AI trend is like the internet: prices may correct, but the buildout and demand are not going away.

Daniel Newman Host, Crypto Banter 4:15

ServiceNow is AI-resilient core software

AI will eat some software, but ServiceNow is a core 'rules and rails' business that AI is unlikely to disrupt because it manages daily workflows and updates. Its Anthropic partnership illustrates that AI and these core software platforms will work together rather than compete.

Google is well positioned amid tech stock selloff, says Futurum Group CEO Daniel Newman

Summary

Ideas

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