Ed Ludlow

You know, it wasn't that long ago where we sat at our desks the day of NVIDIA earnings and all of the literature is calling it a macro level event, such as the impact of a single name on the market.

Maybe we're a bit flippant then, but Carmen set us up nicely, right, of the state of play.

Is this a macro level event this Wednesday?

I think it's still incredibly important given it's the largest stock in the S&P and it does give us insight into what are the ordering patterns because you see all of that big tech investment that's gone through with the spending plans of Amazon, Meta, Facebook.

We have valuations are very high, so it's got to be earnings that's really going to drive growth in the share price because it's hard to see those valuations going much higher.

In the context of software, you were in the camp, and we had this discussion last week with others, that the sell-off we've seen, AI-related sell-off, particularly in software, has been indiscriminate.

That word comes up a lot.

What's your argument on that?

So I think for a long time we've been saying we don't necessarily know who the AI winners and losers are.

And it's kind of like investors actually decided to put their money behind that with the recent sell-off that we had.

And I think people have realized that they don't necessarily know who those winners are going to be and just sort of indiscriminately sold a lot of the market.

I think there will be software companies that can do incredibly well out of this because AI can dramatically reduce their cost to deliver programming.

It can make things more efficient, reduce their expenses, deliver better experience.

But executing all that is really difficult and not every software company is going to be able to do it.

Will you learn much from just earnings and fundamentals this time, Shanti?

Could that be where investors decide to try and catch a falling knife, so to speak?

I think it's hard to see people changing their minds so quickly only in the last few weeks.

But the technology sector does move incredibly fast, as we've seen.

You know, you can have those moments like like deep seek where everything seems to change overnight.

But usually the sell offs are quick and then it takes time to rebuild the momentum.