---
title: 'The AI Stock Flippening Is Starting'
source: 'https://youtube.com/watch?v=1Ysuk8Untq4'
video_id: '1Ysuk8Untq4'
date: 2026-07-15
duration_sec: 1919
---

# The AI Stock Flippening Is Starting

> Source: [The AI Stock Flippening Is Starting](https://youtube.com/watch?v=1Ysuk8Untq4)

## Summary

The video analyzes IBM's pre-announcement of weak earnings, revealing a shift in enterprise spending from legacy software to AI hardware. This 'flippening' benefits hardware stocks like Nvidia and Dell while pressuring software companies, with implications for the broader market and geopolitical risks.

### Key Points

- **Long-term shift in AI spending** [00:02] — The video discusses a major transition where companies are reallocating capital from legacy software to AI hardware, driven by the need for AI infrastructure.
- **IBM pre-announces weak earnings** [01:44] — IBM pre-released earnings showing revenue growth dropped from 9.4% to 1% year-over-year, with EPS missing by 3%, due to a shortfall in mainframe and software sales.
- **IBM's balance sheet concerns** [03:51] — IBM has $26 billion in current assets but $23 billion in short-term debt and $57.7 billion in long-term debt, with significant pension obligations, making it a 'prove me' stock.
- **Customers shift capex to hardware** [07:32] — IBM's CEO noted clients delayed mainframe purchases and shifted spending to servers, storage, and memory to secure supply-constrained AI hardware ahead of price increases.
- **Goldman Sachs benefits from AI boom** [10:32] — Goldman Sachs reported 39% revenue growth, driven by AI-related trading and IPO activity, and is investing in AI hardware, exemplifying the trend.
- **Hardware stocks rally, software lags** [15:10] — Dell rose 7% due to server demand, while software stocks like ServiceNow fell. Cybersecurity stocks also gained as companies prioritize security alongside hardware.
- **AI infrastructure buildout still early** [17:17] — Goldman Sachs CEO stated the AI infrastructure buildout is in early stages, supporting continued hardware investment.
- **Token spend per employee to surge** [18:14] — A chart shows token spend per employee expected to exceed $225,000 by end of 2026, surpassing average software engineer salary, indicating massive AI adoption.
- **Hardware rally likely to continue** [21:02] — Despite a potential dead cat bounce, the video predicts another leg for hardware stocks like Nvidia, Broadcom, and AMD, while memory stocks are bearish.
- **Geopolitical risks from Iran** [25:39] — Trump threatened to hit Iran's power plants, and concerns over Iran's nuclear facility (Pickax Mountain) could lead to military action, negatively impacting markets.

### Conclusion

The AI hardware rally has another leg, benefiting stocks like Nvidia, while software faces headwinds. Geopolitical tensions with Iran and rate sensitivity remain key risks.

## Transcript

today and this is a long-term shift. Holy smokes, we got to talk about this shift because it is a big moment. And no, it's not just Donald Trump taco Tuesday, although we'll talk about that towards the end of the video. Let's talk
about the flip that actually happened. And what's really incredible is if medium-term thesis that I wrote out today. absolutely nailed it. Nobody
nails it like Negan around here. We love Negan. Shout out to you, man. Talk about one of the coolest villains in uh at least Netflix TV series drama. But let's get into the topic. So, uh first we're going to talk about what IBM just said,
what IBM just said, but you haven't heard my takeaways on it, which I think are the most important takeaways. Then I'm going to show you how that plays I'm going to show you how that plays into other stocks that move today and
why this matters more than just today. This is a longerterm transition and it probably bodess well for really the second half of the year for certain stocks. We're going to talk about these again. Shout out to the call
alpha report today. If you're not part of it yet, use that coupon code over at meetke.com because every time Kevin goes on vacation, the market takes a little poopy dupy. But that's okay. We can make it back and we can make it through this
together. Okay. Uh and then towards the end of the video, I'll have a little bonus about a real red flag that has to do with Donald Trump. Donny T. Oh, fun. Okay. So, IBM has earnings scheduled for July 22nd. Yet, obviously, they just
numbers because they were frankly so bad. And the SEC says when you know your numbers are about to be really bad, like, oh, I don't know, you're about to go bankrupt and you're hiring a restructuring advisor, you kind of need
to let people know. Of course, that's just a reference to Lucid Motors, which So, IBM realized that their numbers were going to suck. So they felt so bad they they pre-released their earnings numbers. Now in a prior course member
analysis that we did on IBM I stated on IBM I'm just going to read this out to you verbatim. I'm giving this away. It's not even a pitch. It's just a giveaway. This is what I wrote down on IBM. Not a deal about 10% overpriced. Not excited
here on balance sheet either. Not a surprise, they had to borrow $4 billion with this marginal balance sheet. They have $26 billion in current assets, cash
and receivables specifically, including their receivables, which is important companies are purposfully trying to kick the can down the road on receivables payments, like payments that they need to make for IBM's receivables, which
means IBM gets their cash flow a little later. That's great. Uh, and they have later. That's great. Uh, and they have $23 billion in shortterm debt. Ooh, not great. Which is basically all of their liquid capital. And then on top of
draining all their liquid capital, bro, they got $57.7 billion in long-term debt plus another 18.7 with half of that being retirement obligations. Ooh, they're starting to sound like UPS. Yeah, United Parcel
Service, which is down 46% over the last five years. So if you invested in UPS postcoid because you're like oh you know everybody's going to buy more Amazon
down 46%. That's down almost half on your money and UPS is drowning in pension obligations. Just look at their balance sheet. It's pretty bad. But anyway uh to me I wrote down that this was really a prove me stock. It wasn't a
to see more earnings basically. That's that's what they call that's what a pre approve me stock is. I actually feel the same about Service Now. I know a lot of see the comments. I'm not trying to
like, you know, bag on Service Now. I'm just saying I've done a lot of analysis on them. They're not my favorite. They're down 5.7% today. I think there's a reason for that. Part of it has to do with the IBM news. Hit a lot of software
today, but I think Service Now is getting hit a little harder personally, rightfully so. They are also a prove me story. Maybe they will prove us wrong. softer than some other choices out there. And I don't know about you, but I
don't like soft pee. Okay, so uh what happened with IBM though? So IBM's letter comes out and they basically tell us that their revenue is only going to be up 1%. Okay, cool. Everybody can read the letter, Kevin, but what does that
actually mean in context? Well, in context, you have to remember that their context, you have to remember that their prior growth rate was substantially higher than this. Uh, first of all, uh, their their revenue growth rate. Uh, let
me pull it again here because I wrote it down wrong, but that's okay. I have their, uh, their annual report right here. And what's really incredible is actually their annual reports and their their total their documents because we
going on. So, their total revenue growth rate previously was 14541. There we go. Uh was 9.4%. So, their revenue growth rate declined
So, their revenue growth rate declined from 9.4% to just 1% year-over-year. from 9.4% to just 1% year-over-year. That's absolute trash. That's not good. That's really, really bad. That means you guys went from growing 9.4% to
basically being flat. You went from a growth company to a no growth company. EPS missed by 3%. And what happened here is really the crux of the story for the is really the crux of the story for the entire AI trade uh not just EP uh not
just IBM. What happened here was that their infrastructure sector tanked. This their infrastructure sector tanked. This is when they sell their Z17 mainframes, which is basically an a hardware that you sell attached to a bunch of software
packages. Let's try to explain that and then you're going to see what's actually going on and how this applies to other stocks like an Nvidia, a Crowd Strike, stocks like an Nvidia, a Crowd Strike, uh Cloudflare, uh and so on. So, first
of all, when IBM sells you a main mainframe, they're not just trying to make money off of you selling you, let's say your Goldman Sachs, I'm making this this mainframe saying, "Hey, we're going to help process your credit card
transaction data and your banking data, your compliance processes, which have to be 100% perfect. Otherwise, the SEC is going to drive a spear up your butt and brain." Okay, that is way too graphic. Uh, bad things are going to happen if
your compliance is not perfect. So, we're going to sell you a how many you buy, we're going to spend uh $50,000 to call it $10 million on uh $50,000 to call it $10 million on actual hardware. So, think servers,
have this nice little plastic cladding on it that says IBM, and a little happy green light. Okay, great. So inside of those obviously a lot of packaged together hardware that Nvidia uh might sell or AMD might sell or Micron might
sell or Marll might sell whomever Broadcom might sell. Uh and then of course all of that hardware is operated through IBM's software. But this is where things get really interesting. The CEO came out and said that what played
driven by a shortfall in our Z performance and and associated software performance and and associated software stack in transaction processing. We saw in the last few weeks of June which is basically just the end of the quarter.
Okay, remember the quarter is April, May, June. At the end of June, they had an inflection point and all of a sudden customers said, customers said, "No thanks. We are done doing deals with
"No thanks. We are done doing deals with the saviors, I mean IBM, and instead we the saviors, I mean IBM, and instead we are going to, per the CEO, delay capital are going to, per the CEO, delay capital expenditures on IBM mainframes.
Mind you, they also just introduced the Z17 product, which in fairness is doing really well, but that product is kind of fulfilling its original orders and now
the new orders are not coming through as much as previously expected. So, the old orders are kind of getting filled is my take and the new orders are dropping off a cliff. Why are the new orders dropping off a cliff? Well, they say it's because
of the quote clients were distracted with the rapidly evolving industry-wide cyber sec security concerns in the quarter. We also saw clients shift their quarterly capex spend towards servers, storage, and memory purchases to secure
supply constrained infrastructure ahead of expected price increases. Okay. in English. Yo man, this Claude stuff that came out in Q1, this is pretty good. Why don't we uh put together some more agentic teams
and uh if we're Goldman Sachs and we just made a boatload of money? Why are we going to sign this contract with IBM and, you know, blow some of our money? Why don't we just kick the can down the road on IBM and let's just spend some of
that money on uh oh, I don't know, some Nvidia hardware and run up some of our own ALGO and you know run some of these LLMs at home or maybe we'll even run some of our own proprietary crap on our own servers.
This Goldman Sachs example in my opinion is actually really important for understanding everything that I just said. So, for a moment, we're going to you're going to see there's a reason why I'm talking about IBM. You don't have to
have to like Goldman Sachs to care about this. I don't really care about either of them, but what you learn from this is really important. Now, a lot of people get mad at me. They're like, "Kevin, Kevin, just just chill. Stop yelling
Kevin, just just chill. Stop yelling about IBM." But my belief is that we between the lines to actually understand what's going on in the broader market. So that way when we make investing decisions, we could feel comfortable
with those through bull and bear cycles. We don't want to get paperhanded out understand what was going on. So therefore, let me give you the Goldman example and then we're going to circle back to IBM. Goldman reported a 39%
back to IBM. Goldman reported a 39% year-over-year increase in revenue. Why a SpaceX IPO, the trading boom during the Iran volatility, which like all of the AI hardware rally that we saw since the beginning of August, which we called
on this channel, we're like hardware first, baby, hardware first. In fairness, hardware has been hard since the SpaceX IPO, right? Which that was the great sucketing, which we also talked about. We're like, look, easy up
hardware from the beginning of April. We said it daily. People were mad at me, early. This sucker went up. Socks, I wrote it down. Socks, which is the 3x lever in Paradise, is up 456% since April 1st to June 30th. So, of
course, there's an IPO boom, a trading boom, and you've got the Iran recovery volatility, not the bearish volatility at Q1, the recovery volatility. All the
were nervous in March about what was going on with Iran went right back into stocks in Q2. Goldman makes money on that. Beats on EPS. Assets under management up 20%. Honestly, a lot of that is probably just growth. Return on
common equity up 23.5%. This is really good for Goldman and it makes a lot of sense. I mean, hardware and even indicy levels really cooked. levels really cooked. SpaceX happened to happen. Wow. the last
few weeks of June and all of a sudden you get the great sucking where the money's been deployed and all of a sudden the market doesn't go to all-time highs anymore. We've really been about coming on four weeks now without
sectoral leadership which is why the NASDAQ 100 has not been doing well. Yes, IGV has been trying. Yes, XLV, the healthcare ETF, so software and healthcare ETFs have been trying. Financials, banks have been doing very
well. That's another potential sector to look at. been watching that as well in the way shout out to all of those who uh who use the vacation red coupon code. Uh over at mekevin.com. Remember you get lifetime access to that and uh really
let's now tie this together. So so Goldman beats a lot. What does that mean Goldman beats a lot. What does that mean for IBM or this hardware rally? Right. Okay. Here's how you tie this together. The same company that is now crushing it
because of artificial intelligence le booms in the stock market goes, "Dang, man. Claude goes nuts in Q1. All of a sudden, everybody's betting like crazy on artificial intelligence hardware, including our clients. The
you get a bank that says, "You know what? Maybe we need to direct some of our own money into purchasing some more hardware like Nvidia. And then what do you do?
You go look up what an Nvidia Blackwell chip costs you. And so for example, some of the including some of our Blackwell hardware. I'm just using this as a this is not designed to be a pitch, okay? It's just simply to say, as a
chips for house hack for training our proprietary models on artificial intelligence. It's hard. There's a lot of training to do. There's a lot of work that's going into our reinvest AI product. It's not easy. If it were easy,
been at this with a team of developers for a year and I think by the end of the year, we're going to have a glitz and glam really shiny freaking product. But, stages right now and every week it gets better. uh which is really exciting. But
I look at some of the artificial intelligence hardware that we bought earlier last year and it has doubled in value. So now I'm looking at it going, wait, I thought we were spending money on artificial intelligence hardware last
year and I'm like I was happy to make the expenditures because they were the foundations and still are for what we're doing with our proprietary models. Now we look and we're like, wow, those doubled. Those were not an expense.
Those were actually a return on our investment, a 2x at that. And we're like, man. So now you have to think that's small scale. Now imagine your Goldman Sachs who's crushing it with AUM right now. Higher the stock market goes
the more money they're making. They're going, "Dang, all this hardware's gotten more expensive. Let's also join the boat. Let's grab more hardware." So what happens? They joined the boat of buying hardware at you know peak prices just
like the CEO of I IBM said in the last few weeks of June we shock saw clients shift their quarterly capex spend towards servers storage and memory. Okay so who does that help? Well frankly it helps companies like Dell Dell does
really well in that because what does Dell sell? Servers and storage. That's Dell sell? Servers and storage. That's one of the reasons why Dell Yeah, Dell is up 7% today. really really impressive. They have a low margin
server rack business, but they do massive volumes of it and as a result their bottom line actually goes up quite a bit. Makes sense. So Dell does well,
but now you have to think about being Goldman. You see these hardware uh uh You're going, "Let's buy our own hardware as well. Let's figure some of what we could do ourselves with spinning up some of our own software. So, what
gets hit harder today? Well, the software stocks get hit harder today. Uh software stocks get hit harder today. Uh even though some software stocks like Service Now got hit today, Cyber Security popped though. So, if you
Security popped though. So, if you actually look, IGV was up 1% on the day. Networks, one of the cyber stocks. That's basically the top holding in the fund. Although that changes every so often, so always go check that out. Uh,
and cyber wins big because people are saying, "Wait, okay, so if banks and big their spend into hardware, that's good for Nvidia. It's good for AMD. Wow, these stocks are up four or five% on the day. Uh, Nvidia was up over 4% today,
which today we were looking for another hardware rally in the course member live not live stream cuz we're on vacation, but we still did the alpha report. So, the way to those of you who have joined uh in in just the last recent bit here.
uh in in just the last recent bit here. Austin, Andy, Wayne, Chi, Armen, uh, G bit here. You, Sean, Alexander, thank you so much to all of those of you who have been joining over at meet.com. But focus for a moment. We now connect how
this goes back to IBM. Listen to what the Goldman Sachs CEO said on the earnings call. AI infrastructure buildout is still in its early stages.
stages of the AI infrastructure buildout, says Goldman Sachs, who's now buildout, says Goldman Sachs, who's now investing in exactly that buildout. In addition to that, we get a hardware rally today because the CEO of IBM says,
"Hey, companies are throwing their money back into servers, storage, and me back into servers, storage, and me memory, and cyber security." And companies who are looking in from the outside are going, "Yeah, we've made
money on our AI hardware. Why would we not do this?" On top of this, then you what's going on with tokconomics?" So, in addition to hardware, what's going on with tokconomics? Well, here's a really interesting piece. Shout out to AZ16. I
analysis. I think it's relatively biased, but this was a very interesting biased, but this was a very interesting chart. Look at this token spend per employee. Okay, that's where we sit roughly. Now, we expect token spend per
roughly. Now, we expect token spend per employee to exceed what the average software engineer makes per year. Average software engineer per year is 192,000. token spend per employee right now is expected to grow past that to
about $225,000 by the end of the fourth quarter of 2026. Now, this is another one of those ramp studies. So, it's heavily focused world. I think this is a little overblown. Uh, and so that's where I go
back to sort of balancing some of this with IBM. Just because IBM is telling us that some of their mainframe purchases and their software purchases were and their software purchases were deferred does not mean that these
contracts won't come through. So yes, there could be some deferrals and maybe these will come through in the future. IBM still has plays that are opportune in not only doing these mainframes, right? Again, up 130% on their Z16
mainframe over their uh sorry, their Z17 version over their 16 version. And getting money directly from Donny T. We all know the stock market loves companies getting money directly from Donny T. Longterm, I think a lot of
these companies are going to have to find a balance and they might be hardware now, but they'll find a balance between all right, we could make some of between all right, we could make some of this software ourselves, the lowhanging,
lowcitical infrastructure stuff. We'll just make it ourselves with our own engineering teams. But the really complicated missionritical stuff, the Palanteer mission critical stuff, uh, you know, hospital infrastructure,
banking infrastructure, we're still going to rely on an IBM Red Hat, although maybe we'll take a little breather on that lower hanging stuff and we'll wait before we really go too heavy into expanding and growth. So really,
you're kind of hitting the pause button on growth for some of that legacy software. And that's frankly what Red Hat is. And so you see that in the numbers. Red Hat grew at 12.9% last quarter. Now it's down to 11% sequential
growth. When you annualize that, it's actually a big difference. 12.9 * 4 means Red Hat at IBM was growing at 56.1%. Now 11* 4 means you're growing at 44%. 44 versus 56%. You see this delta
change, right? Is it a pause? Is it a permanent deferral? That's why a lot of because that lowerhanging fruit is getting done inhouse, right? So, how do
together? Well, the way you put it together in my opinion is this hardware probably has another good leg. This is another thing we've been talking about
in our alpha reports and saying, look, we've got a great sucking coming out of the SpaceX IPO. That's a liquidity suck. We're waiting to really form a bottom in hardware. We still haven't found it. We just had one day of a hardware pop,
what we saw yesterday, right? We could immediately sell off again tomorrow. we don't know if that's going to be today, tomorrow, when in the medium to
today, tomorrow, when in the medium to longer term, hardware to me really feels like absent memory. I'm not as jazzed about memory stocks actually getting back up to peak, which I've been calling for a top on memory for about four weeks
now. And if you look at four weeks ago, the stock stock price of Micron is down from $1,200 uh at a at peak. We were at somewhere around $1,200. We were still down about 19% from peak right now. Been calling it
peak on on uh the memory stocks. I think absent memory stocks, we should have another leg to the hardware rally that actually rewards cheap quality companies
actually rewards cheap quality companies like Nvidia, Broadcom, Marll, AMD. AMD is much less expensive, by the way, than Nvidia. I think that's really worth paying attention to. And again, it may all just be a deadcat bounce today. It
we're going to see another hardware push. uh AMD only up 2 and a.5% today a $5 trillion company so it takes a lot to move that stock. So that gives us a
hardware outlook. So basically bearish SpaceX bearish memory even though SKH Highix had a little bit of a meme movement today. Uh more bullish Nvidia less bullish AMD but still bullish Broadcom still net bullish AMD still
Broadcom still net bullish AMD still broad uh broadly bullish Marll uh and uh stocks in that sort of bucket. software companies are still going to have prove me moments. Uh and those are going to take some time. So whether
you're looking at Microsoft down 1.5%. Or you're looking at uh Salesforce which was also down today but only about 2% as much as Service Now uh these companies they're not going to have a red hadening. Now, we can believe that
to know as part of your long-term portfolio that every company is thinking about how can we use AI to save money and make money. And remember, who wins long-term in AI? It's not people. People
are going to get laid off. They keep getting hired. So, so far economically, it seems okay that we lost a million employees over the last year. Household employees are down 1 million over last year. Some of that actually probably a
lot of that is due to deportations and uh you know the lack of new arrivals uh and then of course voluntary uh people leaving uh thanks to Donald Trump's offer that if you get out you could get some money on the way out as you get
that boot in your butt basically. But anyway uh you know eventually those layoffs will stop getting absorbed by the economy which is not good. But that sort of next hardware phase as well. Uh and and then we get into cyber
security. Crowd strike, Cloudflare, very expensive right now. PaloAlto Networks, they're all in the same bucket. They're very desirable because they probably are big winners in artificial intelligence. My take though is it's very difficult to
prove a moat in artificial intelligence. There are a lot of competitors in artificial intelligence. you're probably better off picking some small cap names who are also going to have explosive growth in cyber security and we're going
membership. So if you're not part of that yet uh join us over at me meet.com. that yet uh join us over at me meet.com. So uh on top of all of this, okay, so we just broke down the thesis on hardware which is I think very clear is that
sometime in the medium term we see that next wave in hardware. I don't know if starts today. Okay, it could just be a deadc cat bounce, but the rationale here suggests there there's still legs, especially when you look at actual GPU
pricing and how much money people have made in this uh software still a prove me story. It's still going to take time. Uh cyber security is a much clearer, easier bet, but I think it's a very competitive business. All right, so I
Hopefully it is because sometimes people in the comments are like I don't get it. I thought you said this. And I'm like, when new data comes out, we provide that new data and break down. Exactly. Hold on. Trump told Fox News that the US will
hit Iran's power plants next week. Oh, great. Uh we provide uh and bridges next table, right? We'll talk about that in just a moment. So, you know, obviously, uh you know, we provide updates on the data all of the time. That's why we try
if you watch our videos uh these videos on a regular basis, you should be pretty well with where the thesis is. Uh so again, in case it's not crystal clear, I think cyber is overpriced and it's a
little bit more um less mody. I think there are plenty of small startups uh that could do cyber security very well, maybe even better than the big guys. Uh it's a consulting style business, right? uh software still has work to do
although cyber is lifting that software stock sector right uh you kind of have to almost separate out cyber you know IGV minus uh uh cyber security probably not doing as well uh it and then again hardware there's going to be another
wave to it I'm bearish on memory but uh I think there'll be another wave on especially Nvidia it's just way too cheap okay then let's get into Donald Trump so Donald Trump flip-flopped on Taco Tuesday classic on his uh 20% tax
and tariff and now he's going to strategically invest with Gulf States instead and the blockade is going to continue he tells us. Okay, very interesting. Uh this by the way is news that comes out just 2 hours after the
actually getting implemented again. So again, uh the skeleton of the Iran issue is still present. Obviously, we got a CPI beat today, which was great. It
really enabled stocks wanting to go up, but the Q's did not move up that well. but the Q's did not move up that well. You we could not get above 725, which is kind of weak. We could barely get above 720. Very weak on the cues. Brent is
720. Very weak on the cues. Brent is still at $85. Not great. CPI's beat only brought yields down to about 4.58. So, we're still sitting at the 4.57ish level. Kevin Worch has a preference for trimmed mean or median CPIs. We already
know about that. The most widely cited here is the Dallas trimmed mean at 2 and a half%. And he says that he can't let short-term uh you know forces direct uh saying is just because we have short-term issues in Iran doesn't mean
Okay, we already expect he's going to be an anchor on rates. That's not a big deal. Obviously, uh oil prices at 85 is going to be a problem and it'll show up again in CPI. This recent jump in CPI from oil price or recent CPI beat has
not even incorporated Brent at $85 again. So, not ideal. Now, this also brings up something very interesting. Longer term, I actually get a little bit
more bearish on my bearbull scale on this, separate from the whole AI Donald Trump yesterday suggested rating Pickax Mountain. I literally yesterday before Donald Trump said anything,
talked about Pickax Mountain in my video at the back of a cab in London while I'm think they are rushing to build a bomb there and Donald Trump has done nothing hours later, it's almost as if they watch my videos, they're like, "Oh yeah,
watching it. I literally said in my video, I know they're watching it. Taking satellite photos of that damn thing every day, watching every car or coahoney or whatever going into that, you know, nether.
Well, sure enough, Donald Trump now says, "We are actually considering outrating it, which to me suggests that he's signaling to Iran, we know what you guys are doing there. We know you guys are rushing that enrichment." And now my
concern that Iran was maybe years away at actually actively using Pickax Mountain, I actually become concerned that Donald Trump thinks, "Crap, they're we have to put pressure and highlight that facility so they know we're coming
table before we do." That's what he's doing. So he's trying to play 4D chess here. This is very unfortunate though and it makes me a little bearish because in my opinion it means it's become even more exigent. That pickaxe mountain
needs to be dealt with. Pickax Mountain cannot be dealt with by dropping bombs on it from the sky. It is too deep. You have to raid it. That means boots on the ground. That's going to send the stock
market into the poops. That's not great. So, how do I pull all of this together as a very, very clear bottom line and then I'm done? rate sensitives are going to suck until
the Iran war is over and until Kevin Walsh actually becomes dovish, which won't be clear probably until next year when the economy potentially softens.
Hardware's got another leg to it. I think memory is overblown, but I do think hardware has another leg to it. I really like the price of Nvidia and it in our alpha report, remember you can join mke.com. You get it every single
day. Uh I I literally called it like the feeling of uh you know seeing a photo of feeling of uh you know seeing a photo of your ex-girlfriend, you know. Um yeah, you know, it it it evokes that feeling of like I still miss you, right? Um and
um while there is a risk that we have a short-term deadcat bounce here, uh I really believe that uh this this IBM news is is really something we should pay attention to as software stocks. We
have to be choosy in the sector. You can't just say all software wins. It's one of the reasons I really like Axon government revenue. making their own. They're not buying their own Nvidia GPUs. Goldman might be
buying their own Nvidia GPUs. I'm almost certain that they are. That is obviously a risk to IBM. Whereas the government loading up on more Axon products, services, and software,
they're not buying Nvidia GPUs. But that's okay. We don't need them to. China is instead. So anyway, uh hopefully that clearly reconciles all of hopefully that clearly reconciles all of this. Again, I I I don't want to confuse