Momentum AI Event Will Shed Light on These 5 Holdings

We are focused on the plethora of corporate earnings this week, including those from Waste Management WM after Monday's market close and the corresponding earnings call on Tuesday morning.

We are also keeping our ears open for comments and other insights emanating from the Momentum AI event sponsored by Reuters. The two-day event features speakers from UnitedHealth UNH, BNY Mellon BK, CVS CVS, Goldman Sachs GS, General Mills GIS, Walmart WMT, Elastic ESTC, Citi C, Marriott MAR and many, many others. Our suspicion is that the event will be a showcase for how companies are using AI to drive productivity and streamline costs, and we’re also likely to hear how they are using it to improve the consumer experiences.

If this sounds a bit like Palantir’s PLTR recent AIPCon 6 event, we are right there with you. The only difference is at the Momentum AI event there isn’t likely to be one beneficiary like there was at AIPCon. Rather, the overall event has a high probability of one that speaks to corporate adoption of AI, and that means proof points for our positions in ServiceNow NOW and Elastic, as well as others in the Pro Portfolio like Meta META, Microsoft MSFT and Alphabet GOOGL.

Thinking about the more than 75 C-suite speakers discussing how they are using AI helps us wrap our heads around the massive capex spending telegraphed earlier this year by Big Tech as well as more recent comments by Amazon AMZN and Nvidia NVDA indicating that they see no slowdown ahead for AI and data center.

We recognize the market will be looking for Amazon, Meta and Microsoft to reaffirm their capital spending plans for this year. Alphabet did last week, and given the comments from Amazon, it would be surprising if they didn’t as well.

With Microsoft, there may be some math Olympics involved as we balance its capital spending plans along with those for OpenAI and CoreWeave CRWV. Per CoreWeave’s IPO filing, Microsoft accounted for 62% of CoreWeave’s 2024 revenue and is expected to remain a key customer. Comments captured from Momentum AI on Monday and Tuesday could give us a better feel for not only AI and data center capital spending in 2H 2025. They may give us hints as to when current capacity constraints will start to abate and that would mean a re-acceleration in cloud revenue at Amazon, Alphabet Microsoft, and others.

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At the time of publication, TheStreet Pro Portfolio was long WM, ESTC, PLTR, NOW, META, MSFT, GOOGL, AMZN and NVDA.