These companies are using their cashflow 'WISELY:’ Cresset chief investment strategist

LEGEND CRESCENT CAPITAL CHIEF INVESTMENT STRATEGIST JACK ABLIN. JACK, ALL OF A SUDDEN IT FEELS LIKE PEOPLE ARE WAKING UP TO THE FACT THEY WEREN'T THROWING BILLIONS OR TRILLIONS OF DOLLARS OUT THE WINDOW. THEY ARE TRYING TO BUILD SOMETHING. >> YEAH, THAT'S IT. IT'S REMARKABLE THE FIRST QUARTER GDP WAS FUELED MORE FROM BUSINESS SPENDING THAN IT WAS HOUSEHOLD CONSUMPTION. THAT'S SAYING A LOT FOR CONSUMUMPTION-BASED ECONOMY AND THESE GUYS AREN'T THROWING MONEY AWAY. I THINK THEY KNOW WHAT THEY'RE DOING, AND THEY HAVE A LOT FAIR AMOUNT OF CASH FLOW AND THEY ARE USING IT I THINK WISELY NOW. CHARLES: YEAH, I'M GOING TO BRING UP THIS CHART AHEAD HERE, BECAUSE WE'RE SHOWING NOW CAPACITY AND AZURE HAS GOT THIS FIRST CHART WE STARTED WITH YOU COULD SEE THE AMOUNT OF CAPACITY THEY HAVE FOR THE DATA CENTERS IS JUST ABSOLUTELY HUGE AND YOU KNOW, AGAIN, WHEN THE DEMAND STEPS UP THEY ARE GOING TO BE ABLE TO MEET THAT DEMAND. I'LL PULL UP THE CHART NOW BECAUSE I'M CURIOUS WHERE DO YOU THINK IT COULD GO? LET'S JUST SAY THEHE NEXT SIX MONTHS TO A YEAR WHERE DO YOU THINK WE'LL SEE MICROSOFT? >> YEAH, WE COULD SEE IT'S ESSENTIALLY DOWN YEAR-TO-DATE. I THINK WE COULD SEE A 15 TO POTENTIALLY 20% RETURN IN MICROSOFT AND WHAT I'LL CALL THE CHEAPER OF THE CHEAP OF THE MAG7. SO THE NVIDIA, AND MICROSOFT AND GOOGLE. CHARLES: LET ME BRING UP NVIDIA. LET'S JUST FOCUS ON THAT. I KNOW YOU LIKE IT. IT SEEMS TO BE BY SCUTTLEBUTT, THINGS IT CAN'T SHAKE SO A WEEK OR SO AGO, SEMI ANALYSIS SAID HEY, RUBIN'S DELAYED FOR AN ENTIRE YEAR AND IT SHOOK UP EVERYTHING ASSOCIATED WITH THAT AND WE HAD SORT PUSHBACK FROM JENSEN IN JAPAN OVERNIGHT AND HE SAYS NO IT'S NOT TRUE. RUBIN IS ALREADY IN PRODUCTION YET THE STOCK IS STILL DOWN. HOW DOES THIS STOCK GET TRACTION? >> YEAH. EXPECTATIONS ARE RUNNING REALLY HIGH BUT THEY HAVE GOT AN ENORMOUS MOAT. THEY HAVE HUGE VISIBILITY OF REVENUE WHETHER IT'S THE NEWER CHIPS OR EVEN THE EXISTING SUPPLY THAT THEY'VE GOT IN PLACE SO I THINK THAT IT'S A GREAT COMPANY. CONTINUES TO BEAT EARNINGS ON EXPECTATIONS AND REVENUES, AND IT'S TRADING AT A MARKET DISCOUNT, SO YOU KNOW, HOW MUCH OF IT DO YOU WANT? CHARLES: OKAY JUST IN OTHER WORDS BUY IT AND WHEN IT HAPPENS. YOU WON'T SAY THIS , WHEN THESE THINGS MOVE THEY MOVE SO QUICK. YOU FIND YOURSELF TOUGH LIKE DO I CHASE IT? SO MAYBE IT'S BETTER TO JUST KEEP POSITIONING, POSITIONING AND WHEN THAT MOMENT COMES YOU'RE CONFIDENT IT WILL. I HAPPEN TO BELIEVE E IT WILL TO AS WELL. ANOTHER NAME, META. AGAIN, JUST WHAT THEY ARE DOING IS YOU NORM US. IF YOU LOOK, COMPUTE. THIS IS COMPUTE NOW FOR 2028. IT'LL BE FOUR TIMES, THREE TIMES TRIPLE FROM WHAT IT WAS IN 2025. AGAIN,N, THIS IS WHAT EVERYONE WANTS ALTHOUGH THERE WAS SOME QUESTIONS ABOUT WHETHER OR NOT THERE BE DEMAND FOR IT. WHAT ARE YOUR THOUGHTS? >> YEAH, SO HERE IS A COMPANY THAT HAS OVER THREE AND A HALF BILLION ACTIVE DAILY USERS, AND I THINK A LOT OF THE STREET IS OVERLOOKING THE FACT THAT META IS A HUGE A.I. BENEFICIARY. THEY ARE ABLE TO GENERATE SO MUCH MORE TARGETED ADVERTISING AND GENERATE MORE REVENUE THAT WAY, USING A.I., SO HERE IS REALLY A DOUBLE JUMP SO TO SPEAK. THEY HAVE GOT THE INVESTMENTS THEY ARE MAKING IN THE ORIGINAL CONTENT BUT ALSO, THEY ARE A BENEFICIARY OF A.I., WHETHER THEY CREATE IT OR SOMEONE ELSE DOES, SO I THINK THAT IT'S A GREAT POSITION TO BE IN. CHARLES: YEAH, THE CHART IS LOOKING REALLY REALLY MUCH BETTER BUT RIGHT NOW WE MADE A SERIES OF LOWER HIGHS BUT WE'RE ON THE CUSP OF BREAKING THROUGH THAT. I THINK FOLKS WE BREAKTHROUGH THAT TREND LINE I'LL BE ADDING TO MY POSITION. BEFORE I LET YOU GO ABOUT 20 SECONDS. ANY WILDCARDS OUT THERE YOU'RE LOOKING AT ON YOUR RADAR? >> YEAH, THERE ARE TWO THINGS GOING ON CHARLES. ONE IS I WILL SAY PERFECTION IS THE NEW CONSENSUS. WE SAW IT WITH IBM YESTERDAY. ANY SHORTFALL IS GOING TO GET HAMMERED SO THAT'S SOMETHING WE HAVE TO BE ON THE LOOK OUT FOR. THE OTHER IS, WATCH THE 10-YEAR TREASURY YIELD. THAT'S PROBABLY THE MOST IMPORTANT SIGNAL FOR THE MARKET IN THE ECONOMY THAT WE HAVE GOING. RIGHT NOW, 458 WE'RE FINE, 455 YEAR FINE. WE COULD MIGRATE UP TO MAYBE 475 BUT IF IT GOES BEYOND 475, WE REALLY NEED TO RETHINK OUR OUTLOOK. I THINK THAT THE FED IS CERTAINLY GEARARED ON THE 10-YER AND I THINK THAT'S WHAT THEY'R