We're trying to work out in aggregate
what's going on. The Nasdaq 100 has been an interesting
index to track this week. The sort of anxiety of Monday faded.
On a weekly basis, we're still soft, 8/10 of 1%.
You've got concerns about growth. Then we got some economic data this
morning that makes us feel that maybe recession risks are fading, and we have a
clearer picture on the Fed. When you woke up this morning, Sarah,
what was your picture of financial markets?
Well, it was about the same as it was yesterday, which is reasonably
optimistic. And that's a function of.
Again, so much liquidity added to the U.S.
and global economies during, during and after the pandemic.
And much of this is still working through the system, but we have still
very strong consumer in the U.S. It's labor is holding up, wages are
holding up. There's no reason to panic even though
markets do that from time to time.

So we're looking forward to some good earnings from our companies. And for those, for example, in technology, where they depend on industrial production to be well-placed. Thank you for bringing it back to technology. This is Bloomberg Technology, after all. I mean, it's interesting. You go to earnings. The story was really clear from the Hyperscalers, in particular, right? The commitment to capital expenditures for the air infrastructure. Maybe in Microsoft's case, you learn the lesson that you just don't mistreat estimates in this environment. How selective are you being within that group of hyperscalers or other names that we're so focused on around the story? Well, the day I story is like and this has been well encapsulated on our website by our portfolio manager of telecommunications, media, and Technology Brian Show. And that's that there were three cycles and this first one building is all about the build basic building blocks meaning semiconductors.

And you certainly saw that the Nvidia
boom. But the memory semiconductor stocks have
had a big run too, as they should. They've had a pullback there.
Very interesting. And then to your point about the
HYPERSCALERS, they're absolutely critical in the next phase, which is
delivery. So we need them to build out the cloud
infrastructure. And they're also and this is true of the
ones that we as value investors prefer, like Alphabet and Metta. They're
benefiting from their use of AI as they get more customer engagement.
And and then hyperscalers like Alphabet, not only do they have tremendous. They
can look forward to in phase three, the deployment getting enterprises on cloud.
They enterprise must have massive cloud access because they have so much compute
needs with their data. Monday was a global market event in the
sense that it started in the Asian session, went to Europe and then to the
United States.

But it also shone a light on Taiwan and Korea, those markets. And when I was looking at your holdings, Samsung really jumps out. You have a particularly strong view on Samsung. Explain the thesis there and where it sits in your holdings. Well, you're correct. And Samsung is one of our in both our international and global Fund. One of our largest holdings. And the reason why is that Samsung trades at very reasonable multiples. It's trading somewhere around book value, we think could get to one and a half times book. But they're a major player in memory, semiconductors and the need for memory as I compute expands goes up multifold. So the memory demand rising inexorably, which is great for Samsung. In DRAM, they compete with SKF, Hynix and Micron and Samsung is on the cusp. We think of a major breakthrough in high bandwidth memory. So they will be able to provide the more advanced memory chips and all this

emphasis on high bandwidth, put some
pressure on regular DRAM, so there's some shortages.
We'd like to see this. So the supply-demand balance is very
much in favor of less supply and more demand.
Good for pricing. So Samsung is well placed there.
Plus, in this phase three of delivery, they've got more in phase two and
deployment. There they are with mobile phones that
will be AI enabled. So those galaxy phones should fly off
the shelf. They have other consumer electronics.
They're in foundry and display, like Samsung has a lot.
It's really interesting to hear you outline that. We've done quite a lot on
the show about high bandwidth memory, and that if there's going to be this ramp
and expansion of accelerated driven growth, you have to have the
corresponding high bandwidth memory. But we've not discussed that as much
with the investor base. Sticking with chips, you also are
interested in some of the more cyclical

areas in the automotive and industrial. And I look at some of the names that are outside the United States, Infineon Renaissance over in Japan. Why is it that you like that area? Well, automotive, maybe there's been a slowing of auto sales, but the SAAR doesn't matter so much. It's the content that matters, Chip content. And these automotive-related semiconductors and Samsung and RENESAS, Samsung, German Nossas, Japan are experts in that area. So we're expecting them to see, again, content growth overwhelm or be more important than overall auto sales. You know, barring a recession and we're not expecting one anytime soon, but they're also very strong in industrial chips and to see that in industrial automation and then think about data centers and the need for power regulation, they're both really well placed there. And those stocks have fallen some 30 plus percent over the last one month in

the case of Renesas.
So the value is there as well. So you get the undervaluation and the
growth upside. It's a great combination.

Stocks Get Relief Rally After Jobless Claims Data

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