Evercore ISI's Julian Emanuel: Mood around tech is as cautious as I've seen since ChatGPT launched
Speakers
Julian Emanuel
— Evercore ISI
Summary
Julian Emanuel of Evercore ISI discusses his contrarian bullish view on tech and the broader market despite cautious sentiment since ChatGPT launched. He says tech should continue to lead the bull market higher, sees software valuations troughing, and points to a strong economy with transports ripping. He also downplays the risk of a hawkish Fed nominee and treats gold/silver weakness as background noise.
- Julian Emanuel is contrarian bullish on tech despite cautious AI-related sentiment.
- He expects tech to keep leading the bull market higher.
- He says software valuations are troughing, with sentiment very cautious.
- He cites transports ripping and a strong economy as supportive.
- He thinks a hawkish Fed nomination is unlikely and balance-sheet tightening will wait.
- He treats gold and silver weakness as background noise, not an equity-market warning.
Ideas
Tech will keep leading bull market higher.
Despite December concerns about debt financing for the AI buildout and the most cautious tech mood since ChatGPT launched, he remains contrarian bullish because tech should continue to lead the bull market higher; he also notes the market traded well through challenging news and that the economy is strong.
Bull market continues, led by tech.
He is optimistic on the broad market because equities are absorbing challenging news well and the economy is strong, with tech leadership expected to keep driving the bull market higher.
Transports ripping; economy remains strong.
He says transports are ripping and the economy is really strong, even though cold weather may temporarily bite economic activity; the setup supports continued strength in transport-related equities.
Software valuations troughing; stay contrarian.
He extends the contrarian tech view to software, where sentiment is very cautious after the biggest software giant's recent price reaction and valuations are troughing in Evercore's view; the next few days and post-close announcements are key.
