The AI Correction, Tech Earnings and the Rally 10/27/26

NVIDIA

Across the shows: 43 speakers in other episodes, 34 bullish and 15 bearish calls, past 30 days

• Josh Brown · Ritholtz Wealth ManagementBullish

  Nvidia at 15.3 times forward earnings shows there is no valuation bubble.

  Nvidia trades at 15.3 times forward earnings, so he calls the market an anti-bubble in valuation. Earnings expectations for tech are rising, not falling, and the setup looks better than it did a few weeks ago.

  “We have an anti bubble in valuation. NVIDIA is selling at 15.3 times forward earnings.”at 10:00

• Jenny Harrington · Gilman Hill Asset ManagementBullish

  Nvidia is an opportunity after a year-to-date pause, but carries significant risk.

  She bought Nvidia. Her firm's companies are putting up strong numbers and estimates are rising, yet the stock has paused this year. She sees opportunity in that gap but also significant risk. The pause suggests the market is pricing that risk, and she frames the risk as tied to the funding problems in the broader AI sector.

  “I've also bought NVIDIA... Estimates are going higher... I think there's opportunity here. I think there is, but I also think it comes with a lot of risk.”at 16:30

• Stephanie Link · Hightower AdvisorsBullish

  Nvidia's balance sheet can fund its AI buildout, and demand for its chips is real.

  Broadcom generates about $18B of cash a quarter. Nvidia generates about $48B a quarter. She argues Nvidia's balance sheet is strong enough to fund its own growth, unlike the neocloud players whose balance sheets are weak. She says there is real demand for its products.

  “They're generating $48,000,000,000 a quarter. Their balance sheets are great. They can fund if they want to, and they obviously want to. And there's real demand there.”at 17:34

Alphabet

Across the shows: 15 speakers in other episodes, 13 bullish and 1 bearish calls, past 30 days

• Jenny Harrington · Gilman Hill Asset ManagementBullish

  Alphabet's traditional hyperscaler exposure is undervalued after a 10% weekly drop.

  She bought Alphabet's convertible preferred a few weeks ago to get exposure to traditional hyperscalers, which can fund AI from their existing businesses rather than from scarce external capital. She thinks the valuation is right and the stock is undervalued. It fell about 10% in the last week.

  “I added the Google, the alphabet Google convertible preferred [N]... because I want to play that traditional hyperscaler part. I think it's undervalued.”at 20:56

• Joe Terranova · Virtus Investment PartnersBullish

  Alphabet's pullback since its capex guidance raise is a buying chance; it will be fine long term.

  Terranova puts the pullback in context. Alphabet rose about 116% from June 2025 to June 2026, which caught many investors off guard. The stock has pulled back since its last earnings report, when the company raised its capex guidance. He concludes the stock will be fine over the long term. Jenny Harrington agrees.

  “I think Google, over the long term, you'll be fine.”at 44:33

Sandisk

• Josh Brown · Ritholtz Wealth ManagementBullish

  SanDisk trades at a PEG of 0.08, among the cheapest stocks in the market.

  SanDisk is the cheapest of his three picks, at a PEG of 0.08. He sets this against rising earnings expectations for tech, which suggests the market is undervaluing its growth.

  “SanDisk is currently selling at a PEG of point o eight.”at 9:37

Micron Technology

Across the shows: 13 speakers in other episodes, 6 bullish and 6 bearish calls, past 30 days

• Josh Brown · Ritholtz Wealth ManagementBullish

  Micron trades at a PEG of 0.10, cheap while tech earnings expectations keep rising.

  Micron's PEG ratio is 0.10, one of the three cheapest stocks in the market on that measure. Earnings expectations for tech are not coming down. They are going up, so the low ratio reflects an unusually cheap price relative to growth.

  “It's true. Micron, point one o PEG.”at 9:48

Western Digital

Across the shows: 3 speakers in other episodes, 3 bullish and 0 bearish calls, past 30 days

• Josh Brown · Ritholtz Wealth ManagementBullish

  Western Digital trades at a PEG of 0.13, among the cheapest stocks in the market.

  Western Digital's PEG ratio is 0.13, one of the three cheapest stocks on that measure. Earnings expectations for tech are rising, so the low multiple looks unjustified relative to growth. It also beat expectations this quarter, with $4.64 against $4.11 expected.

  “Western Dig, point one three.”at 9:53

CrowdStrike Holdings

Across the shows: 1 speaker in other episodes, 2 bullish and 0 bearish calls, past 30 days

• Josh Brown · Ritholtz Wealth ManagementBullish

  CrowdStrike has a credible plan to reach $10B ARR early and potentially $20B later.

  He spoke with CrowdStrike's CEO, who laid out a credible plan to reach $10B in ARR a year earlier than expected, in 2030, and potentially $20B by the middle of the next decade. He says the path needs little complex reasoning: growth in AI and agentic activity, plus the safety and security work that will be needed, drives demand. He thinks people underestimate how well cybersecurity names are positioned for the next five to ten years.

  “They have just laid out a credible plan where they get to 10,000,000,000 in ARR one year earlier than expected in 2030 and potentially $20,000,000,000 in ARR by the middle of the next decade.”at 11:04

Broadcom

Across the shows: 7 speakers in other episodes, 4 bullish and 4 bearish calls, past 30 days

• Stephanie Link · Hightower AdvisorsBullish

  Broadcom's AI revenue guidance is credible, with margins strong and the stock cheap at 15x.

  Broadcom guided AI revenue to $115B in 2027 and $230B by 2028. The Anthropic deal has secured about $60B of 2027 revenue, and the market doubted the guidance. Gross margin is 73% and operating margin 66%, so margins are not falling off a cliff. She estimates earnings power of about $22 by 2028, which puts the stock at about 15 times. The stock is down 2% this year after a 60% gain.

  “for 2027 to be 115,000,000,000 to grow to 230,000,000,000 by 2028. ... Gross margin's at 73%. Operating margin's at 66%.”at 15:50

Synopsys

• Joe Terranova · Virtus Investment PartnersBullish

  Synopsys is a buy following Cadence's phenomenal quarter and strong chip-design demand.

  Cadence delivered a phenomenal quarter and its stock has pulled back, which shows strong demand for chips because chip designers are busy. Synopsys reports in December, and Cadence results are usually a read-through, so he wants to own Synopsys. He does not currently hold it.

  “We don't own Synopsys... Synopsys [will be] reporting in December... I think often Cadence report, you wanna own Synopsys.”at 23:59

Space Exploration Technologies

Across the shows: 35 speakers in other episodes, 27 bullish and 16 bearish calls, past 30 days

• Stephanie Link · Hightower AdvisorsBullish

  SpaceX is a long-term buy, with about 200M Starlink subscribers expected by 2030.

  She owns SpaceX for the long term. Its AI compute rental business grew more than 700% year over year, and its connectivity business grew 70%, which she sees as another route to winning. She expects Starlink to reach about 200 million subscribers by 2030 and says SpaceX has low-cost and first-mover advantages in space. The stock is still down about 25% from its highs, and she would add on further pullbacks.

  “I own this for the very long term... I think they're on path to see something like 200,000,000 subscribers in Starlink by 2030.”at 24:36

iShares MSCI Brazil ETF

Across the shows: 2 speakers in other episodes, 2 bullish and 0 bearish calls, past 30 days

• Stephanie Link · Hightower AdvisorsBullish

  Brazil's selloff after the election is overdone; she is adding to EWZ for its demographics.

  She bought Brazil for demographics, not for either election candidate: about 214 million people, the seventh-largest country and the largest in Latin America. Under Lula, fiscal and monetary policy have been good, the currency has strengthened and stocks have outperformed. Inflation is still high but falling, and she cited a record unemployment figure. Agriculture is 23% of GDP and the country has abundant power. The short-term drop is overdone and she will keep adding.

  “I didn't buy it for either candidate. I bought it because the demographics are enormous.”at 28:04

United Parcel Service

• Jenny Harrington · Gilman Hill Asset ManagementBullish

  UPS's shift to higher-margin business is working, with high single-digit earnings growth ahead.

  UPS beat estimates and raised full-year guidance for a second straight quarter. Its focus on higher-profit packages and aggressive use of technology are paying off, and the union overhang is in the past. It trades at 12.5 times earnings and yields 6.5%, and it should benefit if the US economy holds up. She owns the stock.

  “Their strategy is working, and the strategy is focusing on higher profitability business... Earnings growth for the next three years is in the high single digits, kinda 10%, seven, 10% range.”at 31:00

The Coca-Cola Company

Across the shows: 1 speaker in other episodes, past 30 days

• Joe Terranova · Virtus Investment PartnersBullish

  Coca-Cola is a consumer staple growing revenue 12% a year, with strong momentum.

  Coca-Cola has grown revenue about 12% a year over the last four quarters, which is excellent for a consumer staple. The zero-sugar sparkling drinks have worked, it has taken the KFC account from Pepsi, and about 60% of its exposure is global. The stock is up about 35% this year after roughly 15% in 2025. A raised guide that left it slightly down reflects a market led by AI momentum rather than weakness in the business.

  “What's remarkable here is you have a consumer staple company that's been growing its revenue at a clip of 12% over the last four quarters. That is excellent.”at 32:17

The Boeing Company

Across the shows: 3 speakers in other episodes, 3 bullish and 0 bearish calls, past 30 days

• Stephanie Link · Hightower AdvisorsBearish

  Boeing's beat came from the wrong segments, and free cash flow targets look hard to reach.

  Boeing beat revenue estimates, but the beat came from defense and services rather than commercial aviation. Production costs rose and supply-chain problems persisted. Free cash flow beat in the quarter, but she thinks reaching the $1B to $3B target for the year will be very hard, and she is not alone. The turnaround had momentum and then stalled, and she has held the stock a long time.

  “they beat revenues, but in the wrong places. Defense and services, not in commercial aviation... it's gonna be really hard for them to get to the 1 to $3,000,000,000 of free cash flow for this year”at 33:10

GE Aerospace

Across the shows: 2 speakers in other episodes, 11 bullish and 5 bearish calls, past 30 days

• Stephanie Link · Hightower AdvisorsBullish

  GE had a great quarter, and the stock's post-earnings drop is an opportunity to add.

  GE had a great quarter, which she contrasts with Boeing's weaker one. The stock fell on the news, which she sees as an overreaction, and she added to her position. She prefers it to Boeing.

  “I much prefer GE. They had a great quarter, and that stock fell on the news, and I and I actually added more to that one.”at 33:45

Meta Platforms

Across the shows: 50 speakers in other episodes, 45 bullish and 24 bearish calls, past 30 days

• Josh Brown · Ritholtz Wealth ManagementBearish

  Meta is off the list after AI-funding worries and equity issuance; expects it stuck in the penalty box near term.

  Meta was added in late September near $7.50 and rallied on the Muse launch. It then announced massive equity issuance and raised more questions about how it funds its AI spending. The stock could not hold up after earnings, and the desk's risk management stopped them out at $6.85 on October 22. They won't re-enter and want the stock to reclaim its 50-day (about $6.64) before getting constructive. Brown says the name is likely in the penalty box on an intermediate-term basis, not a long-term hold.

  “they followed it up with massive equity issuance and more questions about their funding, etcetera, etcetera. And the stock just couldn't hang on after they reported earnings.”at 37:27

Cloudflare

Across the shows: 1 speaker in other episodes, 1 bullish and 0 bearish calls, past 30 days

• Josh Brown · Ritholtz Wealth ManagementBullish

  Cloudflare is central to agentic AI traffic growth and is recovering in a V-shape; he stays constructive.

  Cloudflare runs a global network between the internet and companies' websites and apps. It sells security and a developer platform, so customers can build and run applications on the same network. Management said non-human traffic is now more than 50% of total traffic on the network and AI agent requests are up 1,700% year over year. Brown argues the company sits in the middle of this agentic trend. The stock pulled back with other AI names but has bounced in a V-shaped recovery. He says to stay constructive as long as it holds above the $2.99 doji top, and it reports earnings on November 5.

  “Cloudflare is sitting in right in the middle of that. So this name has pulled back with the other AI stocks, but it caught itself. It's in the midst of a little bit of a v shaped recovery.”at 38:57

Zscaler

Across the shows: 1 speaker in other episodes, 1 bullish and 0 bearish calls, past 30 days

• Stephanie Link · Hightower AdvisorsBullish

  Zscaler is cheap versus cybersecurity peers and should catch up after lagging this year.

  Link recently bought Zscaler. The stock is up only about 15% year to date, while Palo Alto and CrowdStrike are up more than 100%. She says its valuation at a roughly 50% discount on EV-to-sales does not make sense given the fundamentals. Remaining performance obligations are growing 27% and annual recurring revenue is growing 25%. She expects the stock to play catch-up, though she isn't sure it closes the full gap to peers.

  “I just recently bought Zscaler because it's only up 15% year to date, but Palo Alto and CrowdStrike are up over a 100%. And I think the stock, the valuation at 50% discount to EV sales really doesn't make a lot of sense.”at 39:52

Delta Air Lines

Across the shows: 2 speakers in other episodes, 2 bullish and 1 bearish calls, past 30 days

• Josh Brown · Ritholtz Wealth ManagementBullish

  Delta will rally sharply once oil falls, since it has absorbed about $6B in fuel costs this year.

  Brown argues that Delta's stock would act like it is on a trampoline if and when oil comes down. The airline has absorbed about $6 billion in energy and fuel costs this year. He says this will not always be the case, which implies that Delta's current results are depressed by high fuel prices.

  “If and when oil comes down, Delta is gonna act like it's on a trampoline. They've just absorbed 6,000,000,000 in energy costs, fuel costs this year. It won't always be this way.”at 46:25

US stock market outlook

• Josh Brown · Ritholtz Wealth Management

  Any relief in rates or oil reliably drives a triple-digit Nasdaq rally.

  Any relief on rates and oil reliably produces a triple-digit Nasdaq rally. The momentum area has taken a big step back, which sets up the next move higher. The setup is better now than it was a few weeks ago.

  “Any kind of relief on rates and oil, and that whole mishegas... Is greeted with a triple digit rally for the Nasdaq every time.”at 10:12

• Joe Terranova · Virtus Investment Partners

  The momentum factor's setup into year-end is excellent as yields ease.

  Positioning and sentiment were recalibrated in Q3, which sets up momentum for the end of the year. Momentum tracks the rate of change in yields: it had a punishing 2022 when yields moved fast, and it is now benefiting from yields easing, including a move of more than 20 basis points in the ten-year. He has been as bullish on the momentum setup as at any point in the past week.

  “I think, the setup for momentum as we move towards the end of the year is excellent because you had that positioning and sentiment recalibration in q three.”at 13:41

AI infrastructure & data centers

• Jenny Harrington · Gilman Hill Asset Management

  Neocloud funding has dried up, signalling a real problem for the AI infrastructure sector.

  Several months ago neoclouds could raise as much money as they wanted. Now their funding has dried up, and Anthropic needed Broadcom's CEO to intervene in a financing deal. That shows something has fundamentally changed in the cost and availability of funding. She sees a pocket of toxicity in the sector.

  “for the neo cloud players... funding has dried up, and I think there's a problem.”at 16:30

• Josh Brown · Ritholtz Wealth Management

  Rising cost of capital favours hyperscalers that fund from cash flow over neoclouds.

  He agrees the cost of capital has risen. The beneficiaries are traditional hyperscalers, which fund their AI spending from cash flow generated by their other businesses. Neoclouds cannot fund that way. The market has already priced this in: neocloud stocks are much more volatile than the steadiness of Alphabet, Microsoft and Amazon over the last four weeks.

  “The cost of capital has gone up... In the traditional hyperscalers who are selling mops and brooms and have the cash flow from their other businesses to fund in a way that the Neo Clouds don't.”at 20:11

AI: overall outlook

• Stephanie Link · Hightower Advisors

  AI is in its fourth inning; hyperscaler spending continues and financing remains available.

  She argues the AI cycle is still early. Hyperscalers keep spending and are getting financing through debt, equity and private markets, and they say the spending will not end. Stocks are holding up despite that. Monetisation is showing: SpaceX's AI rental business grew about 700%, and Meta's total revenue rose 26%. Semiconductor results should be very good as a result.

  “I think we're in the fourth inning in AI”at 6:36

Earnings & corporate profits

• Jenny Harrington · Gilman Hill Asset Management

  Earnings strength is broadening beyond tech into industrials, consumer and other sectors.

  Her earnings roundup shows strong upside across many names: Hilton, Coca-Cola, Polaris, Royal Caribbean, S&P Global, TransUnion, HCA, Freeport, Hubbell, Corning and others. Expectations for those names are low, so they could produce big share-price reactions. The positivity may therefore be broader than the tech trade.

  “I think we need to, like, broaden the lens on realizing that maybe all of this economic activity from AI is bleeding out further.”at 12:48

AI bubble & tech valuations

• Jenny Harrington · Gilman Hill Asset Management

  Low PEG ratios in tech reflect skepticism about growth, so they may not expand.

  Micron trades at about five times earnings despite 200% to 300% earnings growth. She argues the market is deeply skeptical about how durable that growth is, so the multiple will not expand the way it normally would. Low PEG ratios therefore need to be read differently than they have been historically.

  “you need to treat a peg ratio, a PE to growth ratio differently in this moment maybe than you have historically because the growth is suspect.”at 22:24

Emerging markets

• Jenny Harrington · Gilman Hill Asset Management

  Brazil's post-election selloff is creating opportunity in strong companies despite government issues.

  Her firm's international strategy moved on Brazil the day after the election. It had no Brazil holdings then and did not invest immediately, but the reaction was similar: opportunities are being created even though the government is a mess. She points to strong companies such as Petrobras, Embraer, Vale and several fintechs.

  “the immediate response was kind of the same... opportunities being created here, and you have the government's a mess... but there's phenomenal country... Companies in the country of Brazil.”at 28:46

Cybersecurity

• Joe Terranova · Virtus Investment Partners

  Cybersecurity stocks have been remarkably strong and the rally is broad across large and smaller names.

  Terranova says cybersecurity has been remarkably powerful and the strength is broad. He cites well-known names like CrowdStrike and Palo Alto, and lesser-known companies with strong balance sheets like Fortinet. He also flags Okta as a takeover candidate, though he gives no support for that call.

  “Cyber has been remarkably powerful, and I think it's broad based. It is companies that are well known like your CrowdStrike, your Palo Alto. It's lesser known companies with great balance sheets like Fortinet.”at 39:35