Larry McDonald on Big Tech stocks: This is what's in play

. . . MARIA: WELCOME BACK, CHECK OUT CHIP STOCKS HIGHER ACROSS THE BOARD REBOUNDING AFTER FRIDAY'S LOSSES MICRON UP 5 1/2% INTEL UP 5 AND A THIRD PERCENT SANDISK UP ALMOST 7% SOARING THE LAST YEAR IN FACT SANDISK UP BETTER THAN 3,000% IN A YEAR WE'VE GOT MAJOR TECHNOLOGY EARNINGS OUT THIS WEEK ALPHABET TESLA IBM INTEL VERIZON WE KNOW WHAT IBM IS GOING TO TELL US THEY PROO ANNOUNCED CAUSING WORST DAY EVER FOR STOCK IBM SHARING PLUMMETED 25% AFTER PREANNOUNCING EARNINGS MISS JOINING ME BEAR TRAPS FOUNDER LARRY MCDONALD >> SPECIAL THANKS TO YOU AND TEAM. MARIA: YOUR TAKE ON ROTATION UNDERWAY, ON WALL STREET, YOU SAY WE'RE IN AN AI NOW INVESTMENT CYCLE SERVERS CAN STILL BE FINANCIALLY DESTROYED WHAT DO YOU MEAN TELL US ABOUT THAT. >> WELL, I MEAN THIS IS THANKS TO OWE AND YOUR TEAM YOU AND I SPOKE ABOUT THIS FOUR OR FIVE MONTHS AGO KIMI, INTELLECTUAL PROPERTY THEFT FROM CHINA, NOW, THIS MORNING, BREAKING NEWS THE TREASURERS OF IT UNITED STATES ON YOUR SHOW TALKING ABOUT, RECON STRUCKIVE CODE WATER MARKS THIS IS EXACTLY WHAT WE WERE SPEAKING ABOUT, FOUR MONTHS AGO NOW YOU HAVE MICROSOFT EQUITY UNCHANGED SINCE FEBRUARY 2024, META EQUITY, UNCHANGED SINCE JULY 2025. ORACLE, UNCHANGED SINCE JUNE 2023. SO BOTTOM LINE IS THE PRESSURE WHAT WE ARE HEARING IN DINNERS WITH INSTITUTIONAL INVESTORS THIS WEEK AND LAST WEEK THE PRESSURE. ON CFOS CEOS TECH STAYS TO TONE DOWN CAPEX JUST A LITTLE THAT IS REALLY WHAT IS IN PLAY IF THEY DO THAT STOCKS LIKE ORACLE DOWN 56% OFF HIGHS -- 65% OFF HIGHS SO COULD BE UP 20, 30% JUST A LITTLE BIT PRODUCTION IN INSANE CAPITAL DESTRUCTION PATH THEY ARE ON. MARIA: TRUE ENORMOUS MONEY SOME BORROWED TOM LEE SAID WE BELIEVE THE DRAM SELL-OFF NEARING END, DO YOU SEE THAT SELL-OFF EXTENDING? >> WELL, SEE, THIS IS WHAT I AM TALKING ABOUT. IF -- IF -- IF THEY DO TAKE DOWN THE CAPEX YOU KNOW PATHWAY, SEMES GET HURT EVEN MORE. SO, THERE IS IF YOU LOOK AT ZUCKERBERG'S STATEMENTS RECENT DAYS ALLUDED TO SELLING CODE -- SELLING, COMPUTE, THAT IS GIVEN THE MAG 7 A LITTLE BIT OF A RALLY SEMIS BEGINNING OF PRESIDENT LONG BEAR MARKET WE SELL RALLIES IN SEMICONDUCTORS MIKE LEE JUMP IN YOU HAVE LOOKED AT SEMICONDUCTORS WHAT LARRY SAID IS TRUE SECRETARY BESSENT SAID TO US ON TELEVISION LIVE WE ARE FINDING U.S. WATER MARKS ON CHINESE MODELS, SECRETARY JUST SAID. MICHAEL: I THINK OPEN SOURCE VERSUS CORE SOURCE MODELS NAVY GOING TO PLAY YOU THE THINK I FAR FROM DERAILING THIS THIS IS GOING TO BE LARGER INVESTMENT CYCLE IN HEFT OF THE COUNTRY I THINK LARRY IS SIMULATOR LOVE HIS WORK JUST ON POLAR ON AS THE OF THIS TRADE, I THINK THIS GOES ON FOR YEARS THE WORLD OF TECHNOLOGY IS CHANGING, IF YOU UNDERSTAND THE EXS EXPONENTIAL GROWTH I ONE HUNDRED PERCENT AGREE A SLIGHT PULLBACK CAPEX SPEND FROM SELLER MAG 7 SELLER MAGNIFICENT 7 BUY OF CHIMPANZEES WE DO NOT THE LAND ENERGY THE CHIPS DID RESOURCES, TO BE ABLE TO BUILDOUT, AND MEET THIS BEGAN TO WHERE POINT YOU ARE GOING TO GET OVER EXPANSION, SO I JUST I AGREE WITH A LOT OF THESIS I THINK THIS IS WAVE OF THE FUTURE WE ARE OFF TO RACES. MARIA: LARRY STRATEGY? >> WELL, IT IS VERY SOUND BUT EVERY TOM DICK AND HARRY THINGS THAT SAY SELF SIDE ANALYST ON STREET THINKS THAT WAY THERE IS ALL BUYS ON FRL SEMI STOCK WHY SO COMPETITIVE WHAT TREASURY SECRETARY SAID ON YOUR SHOW I WANT TO GIVE CLUES EQUITIES IN ENERGY TRANSFER COMPANIES MOVE ENERGY AROUND RISK REWARD VERSUS SEMIS 10 TIMES BETTER, YOU ARE GETTING INTO AN AREA, THAT IS FAR CHEAPER FAR LESS TOM DICK AND HARRY EVERY ANALYST FALLING ALL OVER THEMSELVES, SEVEN TO 12 MONTHS TO BUY STOCKS, SO YOU REALLY WANT TO GO WHERE MONEY IS GOING TO BE, BUT TREASURY SECRETARY GO WHERE TALK IS GOING TO BE NOT WHERE IT HAS BEEN. MARK: SOMETHING EVERY TOM DICK HARRY NOT TALKING ABOUT GIVEN SEVERAL COMPANIES GIVEN THAT AI HAS BECOME SO EXPENSIVE, I CAN TELL YOU WE USE ANTHROPIC, AND, DEAL LIKE BARELY SCRAPING SURFACE YET THEY WANT TO CHARGE US MORE AND CHARGE US MORE GETTING TO THE POINT SOME COMPANIES SAY YOU KNOW I WOULD RATHER NOT USE AI AND HIRE AN EMPLOYEE BACK. >> QUICK LARRY IN TERMS OF ALLOCATING YOUR CAPITAL DO YOU STILL WANT TO STAY WITH HARD ASSETS ARE YOU LOOKING AT GOLD ARE YOU LOOKING AT COMMODITIES MINING COMPANIES? >> RIGHT, SPECIAL THANKS TO TIM, AT MONEY SHOW GIVING KEYNOTE SPEECH TODAY IN VEGAS THE WHOLE POINT OF THE CONVERSATION HARD ASSETS, 6 TO 7 FREE CASH FLOW YIELD RISK REWARD IN GOLD MINERS HARD ASSETS WITH 1.1 TRILLION INTEREST OF COSTS, TREASURY CAN'T HIKE THAT MUCH THE ABILITY TO HIKE RATES LOWER THAN BEFOR