Gil Luria

I'd say that we've been living with that first type of anxiety, the, oh, the data center build out isn't going to get a return for several months.

The software anxiety is more recent, but I'd say both are playing out in the market right now and causing a lot of fear.

But I would actually posit that maybe that's about something bigger.

The fact that investors are so jittery right now is probably an indication that we've had a very long bull run, that there's concerns about the U.S.

government and its policies, the geopolitics of our global relationships, our geopolitics of our trade policy that has to change every week now.

And so I think the market is jittery.

It's looking for bad news.

And now we have two opposing but compelling and scary stories that investors are telling themselves that are causing them to knock down stocks.

I think that there is that layer of just overall jittery markets based on where we are from an overall macroeconomic and geopolitical perspective.

that I'm really not trying to sweep anything under the rug.

I'm talking about we all have to make weighted probability decisions about potential outcomes.

I'm just saying we're overbuilding data centers as a 10 percent outcome,

the AI is going to run everything over in the next two years as a 10% outcome.

And there's an 80% outcome that neither of those terrible things is going to happen.

And if that's the case, we need to look at what the investable opportunities are.

So one of them is Nvidia trading at 25 times when AMD and Broadcom are trading at 32 times with not as good of a business.

Software, which for years traded on revenue multiples, which was always ridiculous.

What does it even mean to be six times revenue or eight times revenue?

That means nothing.

Shareholders only get cash flows.