A productivity BOOM is coming, ‘a lot of hope’: Laffer Tengler Investments CEO says

TECH STOCK RALLY NAYSAYERS OF TE CAUSING A LOT OF EVIDENCE THE MOVE IN THESE STOCKS HAVE BEEN MATCHED BY THE LONG AWAITED PRODUCTIVITY BOOM, THE LIGHT BLUE LINE THAT. MY NEXT GUEST SAYS THE FOCUS OF PRODUCTIVITY AS AN INVESTMENT IN TOLD US ABOUT THIS FOUR YEARS AGO AND SAYS THAT HOURS HAPPEN TO BE CLOSE. INVESTMENT CEO, CIO NANCY TENGLER. THE CHART SHOWS YOU CAN SEE IN THE PAST, TECH STOCKS WENT UP IN THE TECH BOOM WENT ALONG WITH IT, TECH STOCKS ARE GOING UP AND WE ARE JUST NOW GETTING A BIT OF THE PRODUCTIVITY BOOM IT IS COMING, ISN'T IT? >> IT IS. WE HAD INFLATION A FEW YEARS BACK THAT SLOWED EVERYTHING DOWN BUT IF YOU GO BACK TO THE 90s WHEN YOU SEE THE BOOM, THE STOCK PRICES WERE UP TO 20% FROM 95, 2000 AND EARNINGS GROWTH OF 60. WE ARE AT 80 AND 85% NOW SO I THINK THERE'S A LOT OF HOPE. >> IN YOUR NOTE YOU SAY FORGET ABOUT CHARTS, COMPANIES ARE TELLING US, IT'S A BIG VARIETY FROM CHEVRON AND GOLDMAN SACHS, GOOGLE, ALL SAYING IT'S HAPPENING WITH THEIR OWN BUSINESS. >> THE PRODUCTIVITY NUMBERS DON'T GET REVISED SO JOBS NUMBERS CHANGE, THEY DON'T REVISE PRODUCTIVITY NUMBERS SO YOU GOT THAT PLUS THE CONGRESS ARE LISTENING TO THE COMPANIES, WE SIT ON EVERY COMPANY CALLED AND YOU SEE ACROSS COMPANIES, IT EVERY CALL. >> YOU HAD A LONG LIST SO WHEN IT COMES TO THIS, I'M SO GLAD YOU COMING EARNINGS AND HELP US OUT. LET'S TALK ABOUT ONE THING, LET'S CALL IT THE LAST TWO WEEKS. THE AI WILL DESTROY SOFTWARE AND DATA BUSINESSES AND CONSULTANTS AND THAT'S CHANGED A BIT NUMBER ONE STOCK TODAY, THAT DOG IS HUNTING. CROWD SOURCES OF, IT IS INTRIGUING BECAUSE IT FEELS LIKE THE NARRATIVE CHANGING AND PEOPLE ARE SAYING THERE WILL BE SELECT SOFTWARE NAMES AND YOU KNOW AI WILL HELP ENTERPRISE SOFTWARE BIG TIME. >> THE TOTAL ADDRESSABLE MARKET WILL BE EXPECTED TO GROW BY TWO AND A HALF TIMES OVER THE NEXT FEW YEARS. WHAT YOU WILL SEE IS MORE USAGE OF SOFTWARE DEEPER IN THE CHAIN, AND THAT WILL CONTINUE TO DRIVE THESE NAMES. MICROSOFT IS A 500 ALL OF A SUDDEN. >> IN THE BLINK OF AN EYE WHEN YOU'RE READY TO THROW IN THE TOWER. $24 BILLION BACKLOG 370 WEST, I DON'T KNOW HOW MANY YEARS, EVERY COMPONENT AND SECTOR IS UP AND IS THIS THE ULTIMATE PROXY FOR WHERE AI IS GOING? >> I HAVE A CLIENT WHO IS MANY AND THEY HAVE SO MUCH BACKLOG, THEY MAKE IT BACK TO THE OFFICE AND THINK ABOUT IT AND DOUBLE IT AND IT'S STILL EXCEPTED TO THE BACKLOG IS ENORMOUS, SUPPOSED TO BE SEVEN AND A HALF TRILLION SPENT FOR THE NEXT FIVE YEARS AND COMPUTE, DATA CENTERS AND POWER SO THEY ARE IN THE SWEET SPOT. >> 374 A FEW DAYS AGO ALMOST 450 NOW, IS IT STILL A BY? >> I ALWAYS WANT TO GET IT CHEAPER BUT SOMETIMES YOU HAVE TO JUMP IN. THIS IS THE SWEET SPOT AND IT'S TRADED SIDEWAYS AFTER EARNINGS. >> PALANTIR DID FOR A WHILE, BUT YOU'VE GOT TO GET AN, IT'S ON FIRE AND THEY HAVE DISTINGUISHED THEMSELVES. WE ARE NOT SOFTWARE OR CONSULTING, WE ARE SO UNIQUE AND NOW BEING REWARDED FOR IT. >> YOU HAVE TO LOVE ALEX CARPET, HE'S ON THE BANDWAGON AROUND THIS NOTION OF SECURITY THE LARGE LANGUAGE MODELS ARE STEALING THEIR DATA SO I THINK IT'S A NAME YOU WANT TO OWN, THEY WILL BE THE CONTROL TOWER ON THAT. IT IS A LOFTY VALUATION. >> ON THE TIPS SO ANYONE WHO LISTENS TO YOU IS UP BIG BUT I, LIKE YOU, THINK IT'S ROOM TO BIG. >> THIS ONE IS LOOKING IFFY ON THE CHART. >> IT IS. THEY HAVE FIXED CONTRACTS SO IT ALLOWS HYPER SCALARS TO GO AROUND THE GRID AND KEEPS THEM, WHETHER THEY USE THE CAPACITY OR NOT, THEY PAY WILLIAMS AND HE KEEPS THEM INSULATED FROM VOLATILITY. BACKLOG IS HUGE AND GROWING 10% SO IS JUST ONE TO BARBELL YOUR PORTFOLIO IN A DIFFERENT NAME FOR ME. >> SPACEX REPORTED TWO DAYS AFTER THE REPORT STOCKS ARE UP. THAT WAS SUPPOSED TO KILL IT AND THAT WAS LAST THURSDAY. THE STOCK WENT SIDEWAYS IN THE HOUSE, NOT LOOKED BACK AND THIS IS THE NAME YOU LIKE AND EVERY TIME WE HEAR FROM THEM, ELON MUSK IS CLIMBING ON STARLING ALONE, HOW MUCH MARKET SHARE HE THINKS IT WILL TAKE AND IT'S HARD TO BELIEVE HE'S NOT RIGHT. >> I JUST SWITCHED BECAUSE IT'S DOWN ALL THE TIME SO I SWITCHED TO STARLING. LOVETT, PASTOR, MUCH MORE RELIABLE, BUT GOOGLE IS PAYING THEM 920 MILLION A YEAR JUST TO RENT GPU. >> ARE THEY NEO- CLOUD? >> VERTICAL AI, VERTICALLY INTEGRATED THAT HAPPENS TO LAUNCH ROCKETS. >> THE ROCKET THING IS SEXY AND GOT OUR ATTENTION BUT THAT'S NOT WHERE THE BIG MONEY IS. >> MAYBE SPACE DATA CENTERS BUT REALLY THE VERTICAL INTEGRATION OF AI AND THEY ARE RENTING OUT CAPACITY AND GOOGLE IS HAPPY TO BUY FROM THEM. I CAN'T REMEMBER HOW LONG THE LEASE IS, BUT IT'S OVER A TRILLION DOLLARS. >> OVERALL MARKET WENT SIDEWAYS THREE MONTHS AND BROKE O OUT, HW ARE YOU FEELING OVERALL TA