The market is focused on the narrow portion of the AI trade, says Bartlett’s Holly Mazzocca

ABOUT 35% OF PARAMOUNT PLUS SUBSCRIBERS OVERLAP WITH HBO MAX SUBSCRIBERS. SCOTT. >> ALL RIGHT. WE'LL BE WATCHING. JULIA, THANK YOU VERY MUCH. HOLLY MATSAKIS SITTING NEXT TO ME HERE AT POST NINE. WHEN YOU SAT DOWN, YOU SAID, ARE WE GOING TO TALK ABOUT SOMETHING OTHER THAN THE MAG-7? I MEAN, DO YOU THINK DOES THE MARKET WANT TO TALK ABOUT SOMETHING OTHER THAN THE MAG-7? >> WELL, AS WE'RE GOING INTO FRESH EYES TODAY, IT'S CLEAR THE MARKET IS PRETTY FOCUSED ON THE NARROW PORTION OF THE AI TRADE. HOWEVER, THERE ARE OPPORTUNITIES HERE TO BE SELECTIVE AND REALLY LOOK FOR THOSE STOCKS THAT ALLOW YOU TO PARTICIPATE AND BE IN WITHOUT BEING ALL IN ON THE SEMICONDUCTORS AND HYPERSCALERS. >> BUT THE OPERATIVE WORD THERE IS SELECTIVE. WHAT DOES THAT MEAN? YOU STILL THINK WE'RE GOING TO BE IN A CONCENTRATED ISH MARKET, THAT YOU DO HAVE TO BE SO SELECTIVE TO FIND THE NAMES THAT ARE OUTSIDE OF WHERE YOU KNOW, THE BIG FLOW IS? >> YES, I DO THINK THIS IS AN OPPORTUNITY AS WE HEAD INTO EARNINGS SEASON, TO FIND THOSE COMPANIES THAT CAN REALLY CONTINUE WITH VERY DURABLE EARNINGS AND DEMONSTRATE THAT THEY HAVE DIVERSIFIED EARNINGS STREAM BEYOND JUST THE AI PIECES, AND ALSO COMPANIES THAT ARE TRULY INNOVATING AND USING IT WITHIN THEIR PRODUCTIVITY BASE. >> OKAY. I LOVE THAT YOU CAME WITH STOCK PICKS BECAUSE NORMALLY WE DON'T EVEN DO THAT AT THIS TIME WHEN WE'RE WAITING FOR THE BELL. BUT I LOVE THAT YOU DID. AMPHENOL. WHY DO YOU LIKE IT? >> WE LOVE AMPHENOL BECAUSE IT'S A GREAT LITTLE COMPANY THAT GOES INTO THE CONNECTIVITY SPACE. YOU CAN REALLY THINK ABOUT THE AI GROWTH WITHOUT BETTING ON A PARTICULAR PRODUCT, WITHOUT BETTING ON A PARTICULAR HYPERSCALER, WHERE AMPHENOL HAS ABOUT 40% OF THEIR REVENUE TIED TO GROWTH IN AI AND COMMUNICATIONS DATA. HOWEVER, IT'S DIVERSIFIED BEYOND INTO AUTOMOTIVE AND INDUSTRIAL, INTO THE GROWTH IN THE SPACE TECHNOLOGIES AS WELL. >> IT'S NOT LIKE IT'S UNDISCOVERED. I MEAN, YOU'RE LOOKING AT THE STOCK. IT'S UP 31% YEAR TO DATE. >> ABSOLUTELY. IT HAS BEEN. BUT WHEN WE LOOK AT IT, THERE'S STILL OPPORTUNITY FOR CONTINUED GROWTH AND EARNINGS. AND WE ALSO LIKE THAT IT DOES HAVE THAT REALLY DURABLE EARNINGS BASE BEHIND IT. >> OKAY. SO YOU'RE STILL LOOKING FOR THINGS THAT CAN OSTENSIBLY PLAY IN THE THE AI THEME. JUST MAYBE NOT SO MANY THE OBVIOUS ONES. >> THAT'S EXACTLY RIGHT. I WOULD ALSO START LOOKING AT THOSE COMPANIES THAT ARE UNLOVED IN THIS AREA OF THE MARKET WHERE WE'VE SEEN COMPANIES LIKE WASTE MANAGEMENT, WHERE THEY ARE SEEING OPPORTUNITIES TO REALLY USE AI TOWARDS INNOVATION AND CREATING IMPROVED MARGINS ON THE BOTTOM. >> LINE, NEXTERA, LIKE A UTILITY, WHICH OBVIOUSLY IS, YOU KNOW, IT'S THOSE STOCKS HAVE HAVE LOOKED TERRIBLE LATELY BECAUSE BOND BOND YIELDS HAVE BACKED UP. YOU THINK THAT'S GOING TO THAT DYNAMIC IS GOING TO CHANGE. >> INVESTORS ARE CLEARLY SELLING THE ENTIRE SECTOR WITHOUT REALLY APPRECIATING THAT THERE'S OPPORTUNITY HERE. 30% OF NEXTERA'S EARNINGS ARE COMING FROM GROWTH IN CLEAN ENERGY, A LOT OF WHICH IS GOING INTO THE CONTINUED BUILD OUT OF THE DATA CENTER PLAY. SO WE THINK THAT THERE'S OPPORTUNITY FOR INVESTORS TO REALLY DIG IN, LOOK BEYOND JUST SECTOR EXPOSURE AND START TO BE SELECTIVE WHERE YOU HAVE YOUR EXPOSURES HERE. >> WHAT ABOUT WASTE MANAGEMENT? WE'VE GOT A LOT OF TRASH AT THE DATA CENTERS, OR WHAT. >> WE DO THINK OF WASTE MANAGEMENT, LIKE AN INFRASTRUCTURE COMPANY THAT TENDS TO HAVE A BIG FOCUS CLEARLY ON ON WASTE, ON COLLECTIONS. WELL, WE LIKE ABOUT IT IS THAT YOU'RE SEEING GROWTH IN THEIR SMART TRUCKS AND GROWTH OF ACTUALLY UTILIZING AI IN THE WAY THAT THEY BUILD OUT THEIR PLANTS. AND IT'S INCREDIBLY FASCINATING TO SEE THE BOTTOM LINE $300 MILLION TO THE BOTTOM LINE THAT THEY'RE STARTING TO SEE FROM THE GROWTH IN THEIR SMART TRUCKS AND INTO THEIR MANUFACTURING FACILITIES. >> GOT LIKE 15 SECONDS LITERALLY. BUT WE COULD CLOSE ABOVE 7800 FOR THE VERY FIRST TIME ON THE S&P SURPRISE. WE'RE HERE. GIVEN EVERYTHING THAT WE