InsightsJulie Biel, joined Bloomberg TV’s Surveillance to discuss the durability of the current earnings cycle, growing investor skepticism within parts of the AI trade, and why discipline matters as enthusiasm collides with valuation.
Earnings Growth Remains the Anchor
Julie points to the breadth and strength of earnings growth as the market’s central support, cutting across industries and market capitalizations. While geopolitical noise and macro headlines persist, she stresses that long‑term investors should stay focused on businesses with durable growth rather than reacting to short‑term sentiment shifts.
Selectivity Inside the AI Trade
Within technology, Julie cautions against indiscriminate exposure—particularly in semiconductor and small‑cap industrial names that resemble commodity businesses tied loosely to data‑center build‑outs.
ROI Questions Keep Some Tech Names on Hold
Julie notes that hyperscalers and platform companies will likely remain under pressure until investors gain confidence that massive AI capital expenditures will translate into measurable returns. While some firms have successfully expanded and monetized their ecosystems, others have yet to prove that AI investments meaningfully enhance profitability.
IPO Risk and the Reality of AI Economics
Looking ahead, Julie highlights potential headwinds from future AI‑related IPOs, particularly if private‑market enthusiasm collides with public‑market scrutiny.
Watch the full video to hear Julie Biel’s complete perspective.
This information is being provided by Kayne Anderson Rudnick Investment Management, LLC (“KAR”) for illustrative purposes only. Information in this video is not intended by KAR to be interpreted as investment advice, a recommendation or solicitation to purchase securities, or a recommendation of a particular course of action and has not been updated since the date listed on the video, and KAR does not undertake to update the information presented. This information is based on KAR’s opinions at the time of publication of this material and are subject to change based on market activity. There is no guarantee that any forecasts made will come to pass. KAR makes no warranty as to the accuracy or reliability of the information contained herein. Any securities shown were displayed by the broadcaster and do not reflect specific investment recommendations. Past performance is no guarantee of future results.
