In this episode of The Canadian Investor Podcast, Simon and Dan revisit the AI trade after a brutal stretch for technology stocks and ask whether the market is finally starting to question the enormous amount of capital being poured into artificial intelligence.

They start with Anthropic’s amended S-1, where the latest numbers paint a less flattering picture than the original filing. Compute costs have started rising again as a percentage of revenue, operating income has slipped back into negative territory, and Anthropic is carrying roughly $895 billion of future commitments. With OpenAI also raising less capital than initially targeted, Simon and Dan discuss whether Anthropic may have to lower its expected IPO valuation—or even reconsider the timing of the offering.

They then look at the sharp selloff across semiconductors and NeoClouds, with many major AI-related stocks now sitting 20% to 60% below their highs. Meanwhile, the equal-weight S&P 500 and Canadian stocks have significantly outperformed the mega-cap-heavy indexes, suggesting investors may finally be rotating toward more traditional parts of the economy.

Finally, they dig into the financial side of the AI boom: soaring hyperscaler CapEx, rapidly increasing depreciation, growing reliance on debt and equity financing, unusual chip-leasing structures and the question investors are increasingly asking—what happens if the endless flow of capital into AI starts to slow?

They wrap up with a reminder that owning ten different AI stocks is not necessarily diversification, and why periods like this are a good opportunity to reassess portfolio concentration and distinguish between a great technology and a great investment.

Stocks/ETFs discussed: NVDA, AMD, MU, INTC, AVGO, TSM, ASML, CRWV, ORCL, NBIS, IREN, GOOGL, META, MSFT, AMZN, BRK.B, RSP, SPY, QQQ, XIC.TO, SMH

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Asset Allocation ETFs | BMO Global Asset Management

This podcast Ad Read is intended for information purposes only. The information provided herein does not constitute a solicitation of an offer to buy, or an offer to sell securities nor should the information be relied upon as investment, tax, or legal advice to any party. Particular investments and/or trading strategies should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. Past performance is no guarantee of future results. The viewpoints expressed by the speaker represent their assessment of the markets at the time of recording . Those views are subject to change without notice at any time. Commissions, management fees and expenses all may be associated with investments in exchange-traded funds. Please read the ETF Facts or prospectus of the BMO ETFs before investing. Exchange-traded funds are not guaranteed, their values change frequently and past performance may not be repeated.
For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the BMO ETF’s prospectus. BMO ETFs trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination. BMO ETFs are managed by BMO Asset Management Inc., an investment fund manager, a portfolio manager, and a separate legal entity from Bank of Montreal.
BMO Global Asset Management is a brand name under which BMO Asset Management Inc. and BMO Investments Inc. operate. “BMO (M-bar roundel symbol)” is a registered trademark of Bank of Montreal, used under licence.

In this episode of The Canadian Investor Podcast, Simon and Dan revisit the AI trade after a brutal stretch for technology stocks and ask whether the market is finally starting to question the enormous amount of capital being poured into artificial intelligence.
They start with Anthropic&rsquo;s amended S-1, where the latest numbers paint a less flattering picture than the original filing. Compute costs have started rising again as a percentage of revenue, operating income has slipped back into negative territory, and Anthropic is carrying roughly $895 billion of future commitments. With OpenAI also raising less capital than initially targeted, Simon and Dan discuss whether Anthropic may have to lower its expected IPO valuation&mdash;or even reconsider the timing of the offering.
They then look at the sharp selloff across semiconductors and NeoClouds, with many major AI-related stocks now sitting 20% to 60% below their highs. Meanwhile, the equal-weight S&amp;P 500 and Canadian stocks have significantly outperformed the mega-cap-heavy indexes, suggesting investors may finally be rotating toward more traditional parts of the economy.
Finally, they dig into the financial side of the AI boom: soaring hyperscaler CapEx, rapidly increasing depreciation, growing reliance on debt and equity financing, unusual chip-leasing structures and the question investors are increasingly asking&mdash;what happens if the endless flow of capital into AI starts to slow?
They wrap up with a reminder that owning ten different AI stocks is not necessarily diversification, and why periods like this are a good opportunity to reassess portfolio concentration and distinguish between a great technology and a great investment.
Stocks/ETFs discussed: NVDA, AMD, MU, INTC, AVGO, TSM, ASML, CRWV, ORCL, NBIS, IREN, GOOGL, META, MSFT, AMZN, BRK.B, RSP, SPY, QQQ, XIC.TO, SMH
Subscribe to our <a href="https://www.youtube.com/@TCIPodcastNetwork">Our New Youtube Channel!</a>
<a href="http://jointci.com">Check out our portfolio by going to Jointci.com</a>
<ul>
<li aria-level="1"><a href="https://thecanadianinvestorpodcast.com/">Our Website</a></li>
<li aria-level="1"><a href="https://www.youtube.com/@TCIPodcastNetwork">Our New Youtube Channel!</a></li>
<li aria-level="1">Canadian Investor Podcast Network Twitter:<a href="https://twitter.com/cdn_investing"> @cdn_investing</a></li>
<li aria-level="1">Simon&rsquo;s twitter:<a href="https://twitter.com/Fiat_Iceberg"> @Fiat_Iceberg</a></li>
<li aria-level="1">Braden&rsquo;s twitter:<a href="https://twitter.com/BradoCapital"> @BradoCapital</a></li>
<li aria-level="1">Dan&rsquo;s Twitter: <a href="https://twitter.com/StockTrades_CA">@stocktrades_ca</a></li>
</ul>
Want to learn more about Real Estate Investing? Check out the Canadian Real Estate Investor Podcast!
<a href="https://podcasts.apple.com/ca/podcast/the-canadian-real-estate-investor/id1634197127">Apple Podcast - The Canadian Real Estate Investor&nbsp;</a>
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Sign up for <a href="http://fiscal.ai">Fiscal.ai</a> for free to get easy access to global stock coverage and powerful AI investing tools.
<a href="https://www.eqbank.ca/?utm_source=TCI&amp;utm_medium=podcast&amp;utm_content=desc">Register for EQ Bank</a>, the seamless digital banking experience with better rates and no nonsense.
<a href="https://bmogam.com/ca-en/products/exchange-traded-funds/asset-allocation-etfs">Asset Allocation ETFs | BMO Global Asset Management</a>
This podcast Ad Read is intended for information purposes only. The information provided herein does not constitute a solicitation of an offer to buy, or an offer to sell securities nor should the information be relied upon as investment, tax, or legal advice to any party. Particular investments and/or trading strategies should be evaluated relative to the individual&rsquo;s investment objectives and professional advice should be obtained with respect to any circumstance. Past performance is no guarantee of future results. The viewpoints expressed by the speaker represent their assessment of the markets at the time of recording . Those views are subject to change without notice at any time. Commissions, management fees and expenses all may be associated with investments in exchange-traded funds. Please read the ETF Facts or prospectus of the BMO ETFs before investing. Exchange-traded funds are not guaranteed, their values change frequently and past performance may not be repeated. For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the BMO ETF&rsquo;s prospectus. BMO ETFs trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination. BMO ETFs are managed by BMO Asset Management Inc., an investment fund manager, a portfolio manager, and a separate legal entity from Bank of Montreal. BMO Global Asset Management is a brand name under which BMO Asset Management Inc. and BMO Investments Inc. operate. &ldquo;BMO (M-bar roundel symbol)&rdquo; is a registered trademark of Bank of Montreal, used under licence.

The Podcast For Canadian Investors.

The podcast features in depth discussion around individual stocks and various investing strategies while incorporating the nuances of Canadian investment vehicles.

Show hosts Braden Dennis and Simon Belanger bring both experience, fresh takes, well-researched information and entertainment to an investing podcast for Canadians.

The Podcast For Canadian Investors.
The podcast features in depth discussion around individual stocks and various investing strategies while incorporating the nuances of Canadian investment vehicles.
Show hosts Braden Dennis and Simon Belanger bring both experience, fresh takes, well-researched information and entertainment to an investing&nbsp;podcast&nbsp;for Canadians.

The Canadian Investor

The Podcast For Canadian Investors.

The podcast features in depth discussion around individual stocks and various investing strategies while incorporating the nuances of Canadian investment vehicles.

Show hosts Braden Dennis and Simon Belanger bring experience, fresh takes, well-researched information and entertainment to an investing podcast for Canadians.

The Podcast For Canadian Investors.
The podcast features in depth discussion around individual stocks and various investing strategies while incorporating the nuances of Canadian investment vehicles.
Show hosts Braden Dennis and Simon Belanger bring experience, fresh takes, well-researched information and entertainment to an investing podcast for Canadians.