Introduces Gene Munster and asks for his reaction to ChatGPT's advertising plans.
Kelly
Gene Munster
Both OpenAI and Google can win in AI advertising as consumer behavior shifts toward using chatbots and search for information, increasing time spent in this category.
Acknowledges the early stage of AI adoption with a personal example, then asks about the third hurdle for the AI trade this year and whether to stick with tech broadly or more specifically.
Kelly
Gene Munster
The third hurdle is capex guidance from hyperscalers, expected to be strong (~40% growth), because investors underestimate the AI inference market which is much larger than training and will drive prolonged infrastructure spending.
Gene Munster
Small caps can outperform large caps because they have greater earnings revision potential if you believe in the long AI infrastructure story, and this trend started last year and will continue.