“AI” Tops “Earnings”

With traders and investors focused on the power of AI, it’s no surprise that corporate executives are willing to tell them what they want to hear.

Mentions of AI have not only surged on earnings calls – they’ve topped the term “earnings” itself:

AI continues to drive the narrative on Wall Street, particularly during earnings calls. (Source: Chartr)

With many tech stocks now spending more than 100% of their free cash flow on AI projects, the fear is things may turn nasty.

The recent rally in AI stocks stoked investors’ concerns that prices for tech stocks had gone higher than earnings from the companies justify.

That the calls are buzzing with questions about productivity gains and overinvestment is a good sign that investors are trying to be realistic about what the tech actually produces.

Are they…? The question remains.

Worst case, management teams feel they need to have a competitive strategy in AI — whether needed or not — just to keep shareholders happy.

~ Addison

P.S. This week in Grey Swan Live!, at 2 p.m. ET/11 a.m. PST, we’ll be joined by our natural-resources specialist, Shad Marquitz, for a prescient look at volatility and opportunity in oil, energy, rare earths and precious metals following the Iran bombing excursion.

With traders and investors focused on the power of AI, it’s no surprise that corporate executives are willing to tell them what they want to hear.

Mentions of AI have not only surged on earnings calls – they’ve topped the term “earnings” itself:

AI continues to drive the narrative on Wall Street, particularly during earnings calls. (Source: Chartr)

With many tech stocks now spending more than 100% of their free cash flow on AI projects, the fear is things may turn nasty.

The recent rally in AI stocks stoked investors’ concerns that prices for tech stocks had gone higher than earnings from the companies justify.

That the calls are buzzing with questions about productivity gains and overinvestment is a good sign that investors are trying to be realistic about what the tech actually produces.

Are they…? The question remains.

Worst case, management teams feel they need to have a competitive strategy in AI — whether needed or not — just to keep shareholders happy.

~ Addison

Inflation is proving more persistent than expected, as the Strait of Hormuz remains the center of global attention amid the ongoing Iran war.

For over a decade, global financial markets depended on the “yen carry trade.” Now, soaring Japanese bond yields threaten global liquidity…

Gold is an ideal hedge for protection against government foolishness and market volatility. Except… when it isn’t, like we’re seeing today.

Politicians talk. Markets often discount any potential follow-through or just ignore them altogether. But Trump isn’t like other politicians.

Inflation is proving more persistent than expected, as the Strait of Hormuz remains the center of global attention amid the ongoing Iran war.

For over a decade, global financial markets depended on the “yen carry trade.” Now, soaring Japanese bond yields threaten global liquidity…

Gold is an ideal hedge for protection against government foolishness and market volatility. Except… when it isn’t, like we’re seeing today.

Politicians talk. Markets often discount any potential follow-through or just ignore them altogether. But Trump isn’t like other politicians.