'You have to stick to your guns a little bit': The AI trade

"You have to stick to your guns a little bit" says Drew Pettit, Citi Director of US Equity Strategy when asked about investor euphoria, market bubbles and AI general: the latter remains one of its top themes.

Speaking with Brian Sozzi on Yahoo Finance's Opening Bid, Pettit gets into the weeds on the AI trade saying "structurally we like AI, we think it's a game changer" adding "I don't think people on the buy side know what these companies are gonna look like in 5 years".

On blockbuster companies like Nvidia, Sozzi asks Drew if some form of bubble has already burst. For example, what happens if Nvidia blows everyone away with upcoming results and the stock DOESN'T react yet again?

"These types of companies need to beat and raise" he says.

Look for all this, as well as Drew Pettit's take on the 2024 election cycle, and what he sees as the canary in the coal mine. "No one wants to address deficits" he says candidly.

Opening Bid brings you a high-octane take on the freshest analyst calls, wildest stock moves and shrewdest commentary in the business world. Executive Editor Brian Sozzi puts Wall Street's finest through their paces in this essential conversation for every investor - before the stock market opens.

Find this episode's transcripts and more episodes of Opening Bid at https://finance.yahoo.com/videos/series/opening-bid/.

Thoughts? Questions? Fan mail? Email us at yfpodcasts@yahooinc.com.

00:00-Welcome Drew Pettit

00:30-Let's talk euphoria, bubbles and AI stocks

01:06-Simple warning signs

03:05-Don't be over-concentrated

05:20-Has some kind of bubble burst?

07:10-Constructive on fundamentals of Mag7 and AI winners

08:20-Fake AI plays

12:30-Nvidia and why "beat and raise" matter

15:30-Taxes and tariffs

16:40-No one wants to address benefits

19:00-Recession fear: back on?

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