Brian Glenn, CIO of Premier Path Wealth Partners, says the market sits at all-time highs despite over half of S&amp;P names being in bear market territory, with $6 trillion in AI-related CapEx through 2030 still searching for ROI. He sees pharma as a key AI beneficiary, noting Roche&#x27;s 3,500 Nvidia (NVDA) chips speeding drug discovery, and highlights Alcoa (AA) as a cheap pick at eight times earnings with aluminum demand tied to electric grid upgrades and data center cooling. ======== Schwab Network ======== Empowering every investor and trader, every market day. Subscribe to the Market Minute newsletter - https://schwabnetwork.com/subscribe Download the iOS app - https://apps.apple.com/us/app/schwab-network/id1460719185 Download the Amazon Fire Tv App - https://www.amazon.com/TD-Ameritrade-Network/dp/B07KRD76C7 Watch on Sling - https://watch.sling.com/1/asset/191928615bd8d47686f94682aefaa007/watch Watch on Vizio - https://www.vizio.com/en/watchfreeplus-explore Watch on DistroTV - https://www.distro.tv/live/schwab-network/ Follow us on X – https://twitter.com/schwabnetwork Follow us on Facebook – https://www.facebook.com/schwabnetwork Follow us on LinkedIn - https://www.linkedin.com/company/schwab-network/ About Schwab Network - https://schwabnetwork.com/about

AI Spending Power and the Case for Alcoa

Schwab Network

[SPEAKER_01] Welcome back to Opening Bell, getting you ready for the trading day this Thursday morning. Brian Glenn's with us, CIO of Premier Path Wealth Partners. So, new quarter. We begin with some up arrows here on this October 1st. How are you feeling this morning in the current situation?

[SPEAKER_00] Good morning, Nicole. Thanks for having me. So, if we go back in time, we probably always say this is a very tough market, but this one we just find exceptionally tough. We're at all-time highs on paper. We tell clients, look within the index and look within the market, and you have over half of names within the S&P that are actually in bear market territory. They're down more than 20%.

[SPEAKER_00] At the same time, we're spending, I think the most recent number I saw was up to $6 trillion in CapEx, most of that entirely on AI through 2030. That's an exceptionally large number in terms of consuming capital from the economy, in terms of capital raises, in terms of creating jobs on the other end. And so, we don't know, and I think this is questioned a lot, but we don't know what the ROI is on that.

[SPEAKER_00] And we think that number is so large that it has to generate ROI and where do you get the ROI from, and it may come from some of these draconian scenarios, which is a negative. But on the positive, it creates a ton of investment in the near term. And we look back within the market and say, as long as earnings deliver, which they have, this year we'll be at about 30% year over year, and maybe next year 15%. As long as earnings grow, markets tend to do well.

AI Spending Power and the Case for Alcoa

Read the full transcript

The candid version is on a podcast,
not the earnings call.

AI Spending Power and the Case for Alcoa

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.