Core Insights - Michael Burry has returned to social media, expressing a bearish outlook on hyperscalers and AI stocks, and has had a tumultuous experience with his bets on Nvidia [1] - Burry has deregistered his hedge fund, appointed a successor, and launched a new newsletter called "Cassandra Unchained" [1][2] - The newsletter aims to provide clearer communication and insights, free from the regulatory constraints that previously limited Burry's ability to share his analyses [3][4] Company Developments - Burry's new Substack subscription costs $400, and it is designed to offer subscribers direct insights from him, referencing the mythological oracle Cassandra [2] - The newsletter is positioned as a platform for Burry to share his market analyses without the misinterpretations that have occurred in the past due to SEC filing constraints [3][4] Market Implications - Burry's return and his new communication platform may influence market perceptions, especially regarding AI and hyperscaler stocks, as he is known for his analytical prowess [1][4] - The excitement surrounding Burry's insights could lead to increased interest and volatility in the stocks he discusses, particularly given his historical reputation for accurate predictions [4][6]

Thank you so much, John, and thank you, Kim, for doing this today. Um, obviously AI is front and center in everybody's mind, and you're really at the center of this ecosystem from a venture and IPO standpoint, from an M&A standpoint, from a debt financing standpoint. Based on that 360 view, do you get the sense that AI is in a bubble right now.>> So, great to see you, Leslie. Thanks for having me. Um, so the AI bubble question, that's the multi- trillion dollar question.Um I think that um AI will be absolut ...

Infrastructure Advantage in San Jose - San Jose is uniquely positioned with 2 gigawatts of new power capacity coming online in the next four years, making it the only city in California with such capacity [1][5][8] - This location in north San Jose offers access to ample recycled water at a reasonable rate and a new transmission line [2] - San Jose's infrastructure allows it to potentially triple its energy consumption in the next 4-5 years [8] Data Center Development - Prologis is proposing to build 400 megawatts worth of data centers in San Jose [3] - The location near a wastewater treatment facility and landfill is ideal for data centers as servers are not affected by odors [4][5] - The site is underutilized land, avoiding displacement of housing or retail [19][20] Energy and Sustainability - San Jose uses a community choice aggregator to purchase power, signing 20-year power purchase agreements to fund new generation capacity [10][11] - The city is investing in solar and wind power paired with storage to address intermittency issues and increase the renewable mix on the grid [11][12][15][16] - While the city aims for clean energy, it cannot guarantee that no power from nuclear or natural gas will be used, as power comes from the grid [14][15] Market Demand - There is a robust pipeline of interest from hyperscalers, large tech companies, and advanced manufacturing users for the new power capacity [17][18] - A cluster study last year showed over 800 megawatts worth of demand in San Jose, and it is suspected to be higher now [18]

Financial Performance & AI Orders - Cisco achieved a record quarter with strong performance across geographies, technology areas, and customer segments [4] - Cisco secured $13 billion in AI infrastructure orders from hyperscalers, expecting to double last year's total of just over $2 billion in this area [2][3] Security Business & Accounting - Cisco acknowledges the need for faster progress in its security business [8] - Revenue recognition in security is affected by the shift from on-premise Splunk to cloud-based Splunk, with cloud deals recognized over the contract life [6] - Strong demand is seen in new firewalls and refreshed security products [7] AI & Partnerships - Cisco has a strong partnership with Nvidia, collaborating on AI infrastructure and developing an Ethernet switch with Nvidia's Spectrum X silicon, expected in the second half of the fiscal year [9] - Cisco is expanding its ecosystem partnerships, including collaborations with Middle East sovereign clouds like G42 and Humane [10] - Cisco views itself as a neutral ecosystem partner in the AI space [10] Market Perspective & Future Outlook - Cisco believes that the current AI investment boom is different from the 1999-2000 era, as it is driven by companies with strong balance sheets, cash flow, and profitability [12][13] - Cisco believes it is still early in the AI revolution, with significant potential in physical AI, robotics, and agentic technologies [13][14] - Cisco expresses confidence in the balance of the year, citing the acceleration of its teams' work and the uptake of its silicon strategy in the AI infrastructure space [20][21]

AI & Technology - Hyperscalers resemble the operating systems of the dotcom boom and have the best chance of creating software packages that bring AI to the people [4] - The rapid depreciation of AI chips, with new chips appearing every 18 months that are ten times more powerful, poses a risk to independent companies [7] - The focus is on who will create the software package that can be monetized, with hyperscalers having the best chance [7] Market & Investment Trends - The world is different from the dotcom boom era because most companies understand that many of those companies never generated earnings or revenues [1] - Only Microsoft, Apple, and Amazon recovered from the dotcom boom and became substantially larger companies [2] - The ETF business has changed the investment landscape from mutual funds, offering tax efficiency and lower running costs [9][10] - Private debt relative to GDP is down 2% annually, indicating the private economy is saving money [16] - The dollar's stability suggests that the anticipated economic problems may not be as severe as expected [17] Value Investing - The most important engine of a value company is generating free cash flow and collapsing capitalization [13] - Value companies in mature industries should focus on generating cash flow rather than investing heavily in CapEx [13]

Let's talk about it all with Osan Kuan. He is the chief equity strategist at Wells Fargo joining us on set. And I know this week's been a little bit weird, but the stock market we're supposed to buy when prices go down.So, you remain bullish. >> That's right. I think you buy the dip here.Um I think the setup for equities into the year end is pretty still pretty positive. Uh we just had a actually really good earning season when companies beat by 8% on EPS. It was actually the broadest beat that we saw uh in ...

One question lingers in the mind of every investor. Are we in an AI bubble. Should you be worried.The answer to that question is going to determine the portfolio returns of tens of millions of Americans. It's important to understand what is actually happening in the economy. The surge in AIdriven data center projects, all of that construction that's happening.Big reason for this explosion in construction is that mega cap companies continue to exceed expectations on their AI capex spending. So whether we're ...

Core Insights - Nscale will deploy approximately 200,000 Nvidia AI chips under an expanded agreement with Microsoft across its data centers in Europe and the U.S. [1] - The agreement could potentially generate up to $14 billion in revenue for Nscale, based on a comparable contract [1]. - Nscale's joint venture with Aker will supply Microsoft with around 52,000 Nvidia GPUs from its hyperscale AI campus in Narvik, Norway [2]. - AI-related infrastructure spending is projected to exceed $2.8 trillion through 2029, driven by investments from hyperscalers like Microsoft, Meta, and Alphabet [2]. - Nscale plans to begin supplying Nvidia GPUs to Microsoft via its data centers in Texas and Portugal starting next year [3]. - The company raised $1.1 billion from investors, including Aker and Nokia, to accelerate its data center expansion [3].

AI Data Center Investment & Market Sentiment - The market expresses concern that hyperscalers are overspending on data centers, reminiscent of the dot-com era's "if you build it, they will come" mentality [1][3][4] - There's a perception that investments in AI data centers are akin to "lighting money on fire," drawing parallels to the market crash of 2000 [1][2][3][4] - The market questions the financial sustainability of companies like Open AI, particularly regarding its $30 billion annual commitment to Oracle [3] - Despite skepticism, the companies leading the AI data center build-out possess significant expertise and resources [4][5] Hyperscaler Strategies & Competitive Positioning - Each hyperscaler is developing a distinct reputation; Microsoft is focusing on enterprise AI solutions and integrating AI into corporate PCs [6] - Google is successfully integrating AI search results into its existing search platform with Gemini, avoiding cannibalization [7]

Company Overview - The company is a premier digital infrastructure solutions provider operating across all 50 states [1] - It specializes in engineering, construction, service, and maintenance of both wireline and wireless telecommunication services [1] - The company is increasingly focusing on connecting the grid nationwide through long-haul and middle mile networks, particularly for hyperscalers [1] Industry Context - The telecommunications space is currently very busy, indicating a high demand for digital infrastructure solutions [1]