Tom Hulick, CEO of Strategy Asset Managers, spoke with Quartz for the latest installment of our “Intelligent Investing” video series.
Watch the interview above and read the transcript below. A transcript of this conversation has been lightly edited for length and clarity.
ANDY MILLS (AM): We’re having an amazing run in the stock market. Do you think this will continue?
TOM HULICK (TH): I’ve been talking about the next-generation bull market for the last few years, and we’d like to look to the future for our clients as an busy manager would. I’m more positive and I’m positive because there’s still innovation, there’s still technological progress, and I think the business cycle that the United States is in will eclipse some of the business cycles that we’ve seen in the past. So I’m positive. I really think we’re in the early stages of a next-generation bull market, led by advances in artificial intelligence technology, our entrepreneurship, obviously the innovations there, and also the efficiencies that are being created, you know, from modern technologies.
I AM: So even higher from here?
TH: Oh yes, I think so.
AM: Wow. So you mentioned the advancement of artificial intelligence and the advancement of technology. Do you have any specific picks?
TH: Many people talk about it Nvidia and has Nvidia slowed down or peaked or peaked?
AM: Yeah, it’s like Now $3 trillion or something.
TH: Yes. It’s amazing. Well, Apple is also a company that can continue to innovate. Microsoft can continue to innovate. Larger companies in the technology sector should not be avoided. I believe Nvidia will benefit from this for several years to come. This is one of them, NVDA, which is someone who follows the news and probably already knows about it or at least owns it. But I think innovation at Microsoft is a game changer. And so we, like Microsoft, MSFT. People were talking about ASML. This is another great company. You can look at any chip sector to take advantage of the demand for microprocessing and speed. So technology is a sector to which we have allocated about 25% of our portfolio.
AM: Yes, Nvidia had an amazing run. Do you think there is still room for improvement?
TH: I do. I think people said that about Apple. People said that about Amazon. People have said this about Microsoft too. And then we have the next generation of leaders who have benefited from the experiences of past leaders.
I AM: Yes, I’ve heard that Nvidia has a 12 to 24 month technology lead and that companies like Intel and AMD are trying to catch up.
TH: Yes. No matter how you look at it, it’s an invigorating race. Who will ever be first, second, third or develop a better chip. It comes down to the full circle of whether these chips are essential, but what goes into making a chip? How to reduce chip size? How to manage the amount of energy going to the chip? The heat will melt the chip. Then you look at the outliers and dig into what they call sporadic earth metals. Not many people talk about the sporadic earth commodity space and how that translates into power transfer, chip efficiency, and chip speed. We see this today when you utilize your phone. You now have the ability to utilize advanced AI partnership when you open Google or utilize iPhone and ask Siri about next-gen Apple phones, tablets, etc. Well, it’s all come full circle with how they build it and what happens to these companies further down the supply chain.
