The interview features George of Endale Capital and Anthony Zachary of Vertis discussing the market resilience, the future of AI, and the potential impact of ARM's IPO. They highlight the market's resilience despite traditionally bad months for equities like September, and discuss the ARM IPO, which was over-subscribed and saw a significant rise on its first day. The speakers believe this shows a healthy market and a lot of investors who don't want to miss out on a year-end rally.
They also discuss the role of expectations in driving the market higher. Many people expected a recession in the first half of this year, but that hasn't materialized. They attribute the market's resilience to better-than-expected economic conditions, which have led to rising sentiment and market multiples.
The speakers believe that over the long term, the funds that companies will dictate the investment outcomes. They discuss the future of AI, with Masa Son, who controls most of ARM through SoftBank, expressing belief in the future of AI. They also discuss the potential impact of ARM's IPO on the market, with George suggesting that investors need to believe that ARM is bigger than the smartphone processor market and can evolve into a cloud computing and automotive technology provider.
1. The interview is with Ford's CEO Jim Farley, who has a few hours left to negotiate before a potential strike by the United Autoworkers.
2. The market is resilient, with a spectacular IPO for ARM today.
3. The IPO for ARM was 10 times oversubscribed, showing a lot of health in the market.
4. The market is expected to be resilient, and the ARM IPO was a classic supply-demand imbalance situation.
5. The market has been performing well due to better than expected economic conditions, contributing to rising sentiment and market multiples.
6. The investors are long-term investors, focusing on what's going to happen next year, three years, five years, ten years.
7. The future of AI is getting through, according to Masa Son who controls most of ARM through SoftBank.
8. ARM's bread and butter is CPUs, not GPUs or AI systems, which they are trying to argue they have a strong play in.
9. ARM is expected to have a big role in the future of AI.
10. ARM's valuation is in the ballparks of electronic design automation companies like Cadence or Nvidia.
11. Investors need to believe that ARM is bigger than the smartphone processor market that they can evolve into a cloud computing, automotive technology provider.