Lauren Cassidy on Sovereign AI Benefitting PLTR & NVDA, Why Year-End Rally is Likely

back to Opening Bell. Want to make some sense thisction that we're seeing on Wall Street with the VIX still above 20. L Cassidy is with me CIO of founder ETFs. Lauren great to chat with you. What do you make of the market action we're seeing. We're getting some of the earnings in. I do want to talk specifically about Palantir. But overall how are you feeling this morning. Yeah the market's a little bit more cautious. You know we have ahugm elections. You know Palantir put up wonderful numbers. They had a strong beat and raise quarter. They beat sales expectations 6% growing sales al exceeding government for the first time. And then they beat on earnings, $0.44 was 7% beat, and they raised their overall sales guidance. But the st down this morning I think close to 8%. And you know their forecast for Q4. If I had to poke in the report was a little softer than expectations. So they grew sales 96% this quarter. But it'sposed to slow to 89%. And the market just doesn't have a tolerance for any sig of weakness or sales slowdown, especially in tech and esly within AI. With the AI unwind, which Ben Emons, who's a friend of the show and is on regularly, he just talked about the AI unwind sort of happening hard. Doest affeame like Palantir or provide opportunity? Both. I think that, yeah, we have a number of names that are selling off in this, this period, especially A driven names. Palantir is the poster child for that. But for us, that creates opportunities. We really think Palantir is o a kind. We don't think that their earnings report is a read through to others. What they do is so different and so unique, and theyeally theirI, the way they use it that's so special, is the can take a conglomerate that has acquired tons of businesses over decades and has systems from the 70s, 80s, 90s, more modern computers and get real time information from all of those and give management a real time view of thei business f first time and let them make informede never been able to before. There isn't a close second. And so we continue to have high conviction in Palantir. And for us, the sell off is an addition, s amazing how we both were discussi commercial contracts, and that was up 148%. That's a big part of the business now, really. And, and ly, Alex Karp saying, once you go to Palantir, you don't go back. And you said aree given these extraordinary numbers and they do provide something unique. Exactly. And yes, their rule 40,hich is just sales growth. And then the operating margin combined w record number this year in tech, any number over 40 is considered extraordinary. They're at 158%. To my knowledge, in the past 20 years, only one company has exceeded that and that's Nvidia. So their retention also I'll highlight that was 165%. And all that m is even with customers, they lost a customer they had a year ago. Spending $100 is now spending 165 with today. That's how valuable the Palantir platform is to your point. That's how hard it is for customers. Once they're on platform to ever walk away and to lose that new ability to see all of their data across all their systems in real time, that's very valuable for enterprises. It's been used by the government who obviously has very siloed systems. But but now these large enterprises are benefiting as well. It's interesting because youed that the customers are seeing so much value in their Palantir partnerships relationships that they're willing to pay more. There's also talk about sovereign AI, right? Governments. This is commercial. This is the commercial s Sovereign AI could also maybe give Palan boost going forward. You know, governments using this, right? Absolutely. That is an emerging area. We're seeing Nvidia make a big push in sovereign AI signing deals with Korea, with Japan, with other nations. So we are seeing tha trend pick up. And governments in their nature are conglomerates. They have a lot of different businesses don't always have compatible data that can be easily viewed from the top. And soalantir canring them that unique insight that they need to operate efficiencies and capabilities they've never had before. So I continue to see a number of founder led companies, which is our specialty, and more broadly, tech companies participating in that sovereign AI trend. Yeah. And s you know sovereign AI, I mean, AI adoption, of course, giving them a huge boost defense is another big story for this compan But overall, look, is it priced to perfection. It dide some really great numbers and raising the outlook. But in than where we a now. I meanher do you think this is a long term buy? I do, I think Palantir is absolutely a long term buy. I think this is a good buy on the dip opportunity for investors who have strong hands. And then also can take that 3 or 5 year We take a five year view. So we think they're going to continue to exceed expectations. They're going to be able to reduce their headcount. They're going to able to increase their time andtinue to grow theirover loyal customer base. So we see any stopping them. They're just going to take some time here to prove that everything they say they're doing, they're going to continue to e and deliver to shareholders. And just a fina big picture thought as the Nasdaq is now in correction territory for the third time this year, maybe your outlook overall for tech for November and December. Yeah. And so as goes thet so goes tech. But in a slightl bigger So if we the six months after midterm elections tend to be the best of the four year cycle. I'm not saying that's absolutely whaing to happen. But if we do get kind of the holiday rally or Santa Claus rally going into the end of the yeaould think we'd see some outperformance in tech and some b If, you know, things are more uncertain than I think we could continue to see the weakness that seen in October. Lauren, great to chat with you. Thank you