What comes next for NVIDIA and other AI companies

Welcome back to Mornings on 2. In today's Dollars and Cents, the fallout from NVIDIA's Jensen Huang continues. So how do investors pivot? Local financial advisor Clark Garanen joins us now to talk about that. Good morning, Clark. Good morning. Happy Friday. Happy Friday. I always look at CEOs are kind of like coaches, right? Sometimes the team is really not as good without the coach. Sometimes the team is so good, it doesn't matter who's coaching them. Where do you think NVIDIA falls in that? So we're all very aware of this controversy and with the CEO switch, it really does change things. And I think actually one of the biggest questions that I've been getting from people is what's the fallout or what's the ripple effect of all of this? And so we've seen Nvidia drop 25% over the past month. But we've seen a lot of other things hold up. So even some of NVIDIA's competitors, the top five are flat over that period. And the S&Ps held up just to minus 2.5%. So it is nice to see that not only the competitors are doing well, but if we do a deeper dive, we're actually seeing that other sectors, healthcare, financials, industrials, are all positive over that same time. So right now it's really looking that it's sort of Just an NVIDIA problem. And we haven't seen that spill out towards other companies. That's good. That sounds like always good to diversify, but good to see that there's nice overall stocks are doing better change in strategy for investing, particularly in tech and AI going forward in light of the changes. It's going to take a while to shake out at NVIDIA. It is going to take a while to shake out. This is going to be a long term play. The investigation probably won't be done for at least a year. So in general, though, it's giving people a lot of uneasiness and anxiety just around the AI space. And so if we look forward to next week, we have the Anthropic IPO coming up. And so that's it could be a negative for the Anthropic IPO. But at the same time, NVIDIA was also indirectly giving chips to China. Which was a competitor to both Anthropic and OpenAI. So I think that could be a positive, actually, for some other AI names like Anthropic going public next week. Right. So you don't think that was going to be my next question. You don't think this is going to impact the IPO then? You know, I don't think it will. I think right now there's kind of two sides of that coin. Some could look at it negatively, some could look at it positively. And with any IPO, it's always going to be volatile at the beginning. And yesterday I was actually talking to one of my Anthropic clients, and the plan is to trim some of their shares once we're able to next week because of concentration risk, right? It's something that we talk about all the time. But I think over the past month, it's really shown that even the tallest trees can fall. Yeah, I feel like when you look at the broader picture, AI is not going anywhere. That's a whole, you know, Jensen Huang, that's going to take a while to play out. But AI is still here with or without him in charge. So, Clark Aaron, thank you so much for weighing in. We appreciate it. Thanks, Pam. Have a great weekend. You too.