This is a RESURGENCE in an area we haven't spoken about in decades, expert says

SINCE DECEMBER OF 2021. JOINING ME NOW TO DISCUSS, CHIEF MARKET STRATEGIST, PHIL, NICE TO SEE YOU. THIS IS A REGIONAL NEW YORK NUMBER, LOOK AT HOW IT OUTPERFORMS, THIS IS YOUR BEST NUMBER AND FIVE YEARS. WHAT DOES IT TELL YOU ABOUT WHAT THE FED COULD DO BECAUSE OF THE ECONOMY? >> I THINK THAT THAT IS ON PAUSE BECAUSE OF THE CPI DATA AND RETAIL LENDING BUT I WANT EVERYBODY TO THINK ABOUT FOR A LONG TIME NOW WE TALKED ABOUT THIS RENAISSANCE AND MANUFACTURING AND IS NOT IN PHILADELPHIA AND CHICAGO AND NATIONWIDE, IT IS INDICATIVE OF AN ECONOMY THAT HAS UNDERCURRENT OF RESURGENCE IN AN AREA WE HAVEN'T TALKED ABOUT AND MAYBE DECADES AND YOU SEE THE INFRASTRUCTURE PLAY BECAUSE OF AI COME TO LIFE WHETHER IT'S NEW DATA CENTERS, LOOK HOW YOU OPENED YOUR SHOW. THOSE ARE AI NAMES IMPACTED BY CORNYN, A GREAT NAME. IT'S INDICATIVE OF HOW STRONG THE CLIENT IS BUT IT DOESN'T. >> DOES THAT MEAN IT'S BULLETPROOF? >> THE 5.5 TRILLION WILL BE SPENT IN TOTAL BY 2030, IT HAS TO PRODUCE REVENUE. REVENUE TO MAKE UP FOR THAT KIND OF SPEND, IT'S YET TO BE SEEN, BUT THE REALITY IS PRODUCTIVITY ENHANCEMENTS ARE SO POWERFUL WE DON'T UNDERSTAND WHAT IT MEANS FOR LONG-TERM PRODUCTIVITY GROWTH IN 2025% -- GMAC SANDISK POSTED 80% MARGINS, 80%. >> YOU ARE RIGHT, THAT'S THE HARD PART, BUT THE JEWS JEWS WITH THE SQUEEZE? >> WE HAVE TO BE CAREFUL ABOUT OPEN AI CUSTOMIZING AND AI MODEL FOR YOURSELF ALMOST. >> I'M TOO CHEAP TO PAY THE. [LAUGHTER] >> THAT'S THE IMPACT OF PRODUCTIVITY, HOW MUCH BETTER WE WILL BE WITH YOU MANUFACTURING AND INDUSTRIAL REVOLUTION AND FOR NOW, IT IS WORTH THE SQUEEZE. >> I'M LOVING THE OPTIMISM, I DON'T WANT TO RAIN ON THE PARADE BUT YOU SAY RATE HIKE, THE MARKET IS PRICING IN, 32% CHANCE OF A RATE HIKE WHEN THE FED IN 30 DAYS, YOU SEE A RATE HIKE? >> MAYBE IF OBVIOUSLY THE IRAN SITUATION IS A LITTLE, SUPPLIES A RUN DOWN AND PUSHING 100, 115 AGAIN, THAT'S A DIFFERENT NARRATIVE WE FIND OUT WHETHER IT'S THE SHUT OFF ON THE SHIPS OR VENEZUELA AT AN ALL-TIME HIGH, NOT EVEN SPOKE ABOUT, PRODUCING OIL AGAIN, THERE'S ENOUGH OIL ON THE MARKET TO KEEP IT LOW ENOUGH THAT IT'S NOT YOUR ISSUE I DON'T THINK THAT HIKES AT A TIME WHEN THE LABOR MARKET IS OKAY, AT A TIME WHEN DOES NOT A REAL DEMAND FOR LUNG GROWTH SO I DON'T THINK THERE'S A NEED FOR RATE HIKE HERE. >> TALKED ABOUT THE CONSUMER, HOW WE SAY WE FEEL ABOUT THE ECONOMY IS AFFECTED BY THE PRICE OF GASOLINE AND EARLIER DOLLARS AND 6 CENTS A GALLON TODAY, A SLEW OF RETAIL EARNINGS COMING UP THIS WEEK IN WALMART, THE BIG ONE ON THURSDAY, WHAT ARE YOUR EXPECTATIONS FOR THE CONSUMER AND IS IT AN ENERGY GAS PRICE STORY? >> IS NOT A GAS PRICE STORY. THEY'LL MAKE LESS THAN 100,000 A YEAR, 400 GALLONS OF GAS A YEAR, MORE THAN 250 IS 1000 GALLONS. THE PEOPLE WHO DRIVE THE MOST MAKE THE MOST, IT'S NOT THAT BIG OF A STORY, IT'S MUCH MORE TOWARD THE END OF THE YEAR BUYING FOR HOLIDAY SEASON AND THAT'S A LITTLE DIFFERENT. I DON'T SEE THAT AS A PROBLEM, IT'S CAR INSURANCE, ENERGY COSTS, FOOD IS FLAT OR DOWN YEAR-OVER-YEAR SOLANO THE CONSUMER IS ABOUT THE CURRENT PRICE OF THINGS WILL BE HUNG ON THE ISSUE IS SENTIMENT LOW HAS ALWAYS BEEN LOW THIS TIME OF YEAR IS SENTIMENT DOESN'T NEED AFTERMARKET, IT'S A GREAT TIME TO BUY GENERALLY. >> WE CAN'T IGNORE WHAT'S ON THE SCREEN HERE, BIG TECH SPENDING CONTINUE TO STAY IN FOCUS SO THE "WALL STREET JOURNAL" PUT OUT A REPORT SAYING BIG TECH AI SPENDING IS $3 TRILLION HIGHER THAN IT SEEMS, SOME OF THE BREAKDOWN HERE BECAUSE IT'S NOT ONLY UP NEXT THEY WILL SPEND, IT'S THE DARK RAIN, OFF-BALANCE-SHEET OBLIGATIONS, IS THIS GOOD OR BAD? >> 5.5 TRILLION BY 2030. ALL THESE NUMBERS IF YOU THINK ABOUT THIS HERE, ALL OF THESE ARE DOWN AS YOU GO DOWN, YOU HAVE TO ARGUE, WILL SPEND STORE PICKS AND SHOVELS OF THE INDUSTRIES? WHETHER IT'S CORNYN FOR GM, CUMMINGS OR CATERPILLAR, EXCUSE ME, ALL THOSE NAMES ARE INDICATIVE OF THIS OVERSPEND. CAN THE MAG SEVEN STILL BE MAGNIFICENT WHEN THEY SPEND AS MUCH MONEY? AS OF NOW, LOOK AT THE LAST YEAR, BUT, NOT CONTRIBUTE OR SEVEN, WITH A GO FORWARD? IT'S HARD TO MAKE A $4 TRILLION COMPANY A TRILLION DOLLAR COMPANY, BUT THEY HAVE THE HELP HORSEPOWER AND MONEY TO SPEND AND DRIVE IT FORWARD. WE SHOULD BE BEHIND THE IDEA OF 30% EARNINGS GROWTH, THAT SILLY BUT EIGHT AND TEN MARGIN GROWTH OF EIGHT OR NINE, THAT'S A SOLID SCENARIO GOING BACK TO NORMAL. >> GROWTH STOCKS, THEY ARE VALUE STOCKS. >> LOOK AT THE VALUE INDEX, MICROSOFT. >> WHAT ABOUT ANTHROPIC? FORECASTING 200 BILLING DOLLARS IN REVENUE BY 2028. IT ROSE 14, TO PITCH THEMSELVES TO INVESTORS SINCE LAST YEAR, WHAT DOES THAT TELL YOU ABOUT VALUATIONS? >> THE JUICE IS WORTH THE SQUEEZE. ANTHROPIC CLEARLY SAYING WE ARE MAKING MONEY AND FINDING WAYS TO DRIVE REVENUE AND I DON'T LIKE THAT THERE IS CONCERNS ABOUT -- THERE ARE SOME CHANGES IN THE MODEL IN A SCENARIO WHERE I THINK YOU HAVE AN OPPORTUNITY. >> MOMENTS ASK, WHY YOU LIKE IT? >> TRADING CHEAPER THAN J.P. MORGAN AND MORGAN STANLEY AND LOOK AT GROSS STORY, THEY HAVE 34% RETURN ON REVENUE THIS YEAR LOOKING AT EQUITY GROWTH AND MARGIN GROWTH 15 TO 16%, A GREAT CHEAP BIG BACK. >> JET ENGINES PEOPLE ARE TRAVELING. >> 17 BILLION AND BACKLOG BY THE COMPANY MORE THAN HIGH DEMAND, 40% EARNINGS GROWTH. >> 17 BILLION AND BACKLOG. I'VE NEVER HEARD OF THIS UNTIL YOU. >> I LIKE THE STOCK, PICKS AND SHOVELS OF AI AND THEY CREATE THE POWER AND BUILD DATA CENTER AND RELATIVELY CHEAP AND TALKING ABOUT ALMOST 30% EAR