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AI theme has 'a long way to run': Strategist

Yahoo Finance host Jared Blikre and The Wealth Consulting Group Chief Market Strategist Talley Léger discuss market leadership shifting from tech concentration to diffusion, explaining why investors must take a 'leap of faith' on massive AI capital spending by tech hyperscalers like Alphabet (GOOG), Meta (META), and Microsoft (MSFT). Video Transcript 00:00 Speaker A Is the old AI trade back? 00:01 Speaker B Well, if I were to give you just three pieces of information, let's talk about a group of stocks that has persistently double digit earnings growth, better than the market, plus a PE that's in line with the rest of the market and had been lagging, even actually down for a period of time. Would you take, you know, start taking look for opportunities? I think the answer is yes. And so, I've got this two-stage model from tech concentration that I'm conce conceptualizing to tech diffusion. So, we still need the the Mag 7. Those are the producers to hold their ground and fuel the next transition in this market cycle, which is to the users, I think. 00:46 Speaker A So I want to ask you about, show me the money, uh from AI and specifically the hyper scalers. So not necessarily the Mag 7. Nvidia, you know, they're selling chips, but the ones who have to pay for these entire build outs like Microsoft, Meta, Alphabet, Oracle, the like. Uh they're spending a lot of money. 01:12 Speaker A we just learned a couple of weeks ago that Alphabet went cash flow negative for the first time in their entire 20 plus year history. Does that concern you? 01:21 Speaker B So, this is the leap of faith that we have to make in that corporate flywheel. So yes, they have compressed free cash flow now and they're starting some of it more than others like Oracle, I would point to on on the extreme, uh to as I say, generate or engineer future sales. And so, this is where we see the expectations for those future sales start to ratchet higher. And so again, I think this is the the leap of faith. Taking a giant step back, cycle on cycle, when you look at the Nasdaq now versus past cycles where we had a boom, I think that this theme generally has a long way to run. 02:04 Speaker A It looks like it's legit. I will say that. View Comments

Explainer-How could New Mexico's $567 million ruling change Meta?

By Dietrich Knauth Aug 7 (Reuters) - A New Mexico state court ordered Meta Platforms, owner of Facebook and Instagram, to make major changes to its platforms and pay the largest sum yet in a growing wave of U.S. litigation over claims that social media harms young people. Here ‌is a look at the decision and its potential consequences. HOW MUCH MUST META PAY? The court in Santa Fe ruled on Thursday that Meta must ‌pay $567 million into a New Mexico fund for teen mental health prevention and treatment. In an earlier phase of the case, a jury awarded New Mexico $375 million on related consumer protection claims. The combined $942 million ​far exceeds other penalties in youth-related social media cases including a $6 million verdict against Meta and Alphabet's Google, owner of YouTube, in a California case in March. Meta said the claims misrepresented the facts and that it will appeal the ruling. WHAT CHANGES DID THE COURT ORDER META TO MAKE? Judge Bryan Biedscheid in Santa Fe ordered Meta to implement measures for users in New Mexico intended to protect youth on Facebook and Instagram. The ruling does not affect other states. Meta must introduce more stringent age verification, restrict users under ‌18 to no more than 90 hours a month and ⁠shut off push notifications overnight and during school hours. Parents must consent to the number of "likes" on a child's post being shown, the ruling said. Meta must also ban sexualized chatbot interactions with minors and blur images suspected of containing nudity. The judge rejected some ⁠of the changes New Mexico requested, including modifications to Meta's algorithms and features such as infinite scroll and autoplay videos. The company said during the trial that some changes the state sought were not technologically possible and could force it to exit the state. WHAT WAS THE BASIS OF THE JUDGE'S DECISION? Biedscheid ruled that Meta created a public nuisance, agreeing with ​New ​Mexico's claims that Facebook and Instagram were designed in ways that addicted young users and did not ​adequately protect them from sexual exploitation. Reuters last year reported on ‌company documents that showed Meta's AI chatbots could "engage a child in conversations that are romantic or sensual." The judge rejected Meta's call to dismiss the case under Section 230 of the Communications Decency Act, which generally shields online platforms from liability over user content. WHAT IS A PUBLIC NUISANCE? Public nuisance claims traditionally have been used in cases involving threats to public health or safety, such as pollution. More recently, governments have brought them in lawsuits against companies that sold or marketed tobacco and opioids. Story Continues In the New Mexico case, the judge found that the harms from Meta's platforms extended beyond individual users and imposed broader costs on families, schools, hospitals and law enforcement. Meta argued ‌at trial that it had not violated any public right such as access to air ​or water, that its social media platforms are not the only ones used by the state's young ​residents and that the case ignored the impact of other apps. HOW DOES ​THIS AFFECT OTHER CASES? The New Mexico case does not directly impact thousands of other pending lawsuits by children and families or ‌public nuisance claims by more than 40 states and 1,300 school ​districts. But New Mexico Attorney General Raúl Torrez ​has called the decision a "blueprint" for governments seeking to force changes on social media platforms through the courts. A federal trial scheduled for August 12 in Oakland, California, will test claims by 29 states that Meta illegally collected and used children's data, designed Facebook and Instagram to addict young users and ​misled consumers. The case could expose Meta to massive damages ‌and potentially sweeping changes to its products. Meta has denied allegations that it harmed young users or misled the public about the safety of ​its platforms. The company has pointed t

Beyond NVIDIA and GPUs: The Next AI & Quantum Winners Leading 2026

The artificial intelligence boom has created enormous wealth over the past three years, with NVIDIA NVDA emerging as the undisputed leader of the AI infrastructure revolution. But as the market matures, investors are asking a different question: where will the next wave of AI winners come from? The answer may lie beyond traditional AI infrastructure. The momentum behind AI remains strong. According to the Stanford AI Index 2026, global private investment in AI continued to accelerate in 2025, with U.S. investment reaching $285.9 billion, far outpacing Europe ($20.9 billion) and China ($12.4 billion). The data underscores that capital continues to flow aggressively into AI innovation, even as the investment landscape broadens beyond GPUs.Standford University Image Source: Standford University Hyperscalers including Microsoft MSFT, Amazon, Alphabet, Oracle and Meta are collectively on track to spend more than $700 billion in capital expenditures in 2026, with AI infrastructure accounting for a significant share of those investments, signaling that the AI investment cycle is far from over (S&P Global, May 2026 article). At the same time, governments worldwide are accelerating funding for quantum computing, viewing the technology as a strategic asset for economic competitiveness and national security. The convergence of these two megatrends is creating an investment opportunity that extends well beyond today's AI leaders. AI Spending Expanding Across the Technology Stack The first phase of the AI boom rewarded semiconductor companies, particularly NVIDIA, as enterprises raced to build AI computing capacity. But the investment cycle is now broadening beyond chips. As stated earlier, major hyperscalers have collectively guided hundreds of billions of dollars in capital expenditures this year, with AI infrastructure accounting for a significant share of those investments. The spending extends beyond GPUs to custom AI accelerators, networking equipment, memory, storage, data centers and power infrastructure needed to support increasingly sophisticated AI models. Enterprises are moving from pilot projects to production-scale AI deployments, driving demand for AI servers, cloud services, cybersecurity, data management and software platforms. This expanding ecosystem has created opportunities not only for semiconductor companies but also for networking providers, cloud infrastructure vendors and enterprise software firms. Companies such as Broadcom AVGO and Marvell Technology MRVL are gaining from AI networking and custom silicon. Arista Networks is capitalizing on data-center networking upgrades and Palantir is benefiting from growing enterprise AI software adoption. Story Continues Analysts currently expect AI-related capital expenditures to remain elevated for years as businesses transition from AI experimentation to production-scale deployment.Standford University Image Source: Standford University According to the Stanford AI Index 2026, 88% of organizations globally reported using AI in 2025, up from 78% in 2024 and 55% in 2023. Governments Are Betting Big on Quantum Government support is becoming a key catalyst for the quantum computing industry. In the United States, the federal government continues to fund quantum research through the National Quantum Initiative, while agencies including the Department of Defense, DARPA and the Department of Energy are awarding contracts for quantum computing, networking and sensing technologies. Europe is advancing commercialization through its Quantum Flagship program, while the U.K. recently expanded its National Quantum Strategy with long-term funding aimed at building a globally competitive quantum industry. China also continues to invest heavily in quantum communications and computing infrastructure. Pureplays like D-Wave QBTS continue to secure government-backed research collaborations, while Rigetti has benefited from defense and public-sector contracts. As governments prioritize quantum

Rathbones Group PLC Trims Stock Position in Meta Platforms, Inc. $META

Evolutionary Tree Capital Management LLC Sells 1,914 Shares of Meta Platforms, Inc. $META

East Coast Asset Management LLC. Sells 7,638 Shares of Meta Platforms, Inc. $META

Hilltop Holdings Inc. Trims Stock Holdings in Meta Platforms, Inc. $META

FreeGulliver LLC Lowers Stock Holdings in Meta Platforms, Inc. $META

Trivest Advisors Ltd Increases Stock Holdings in Meta Platforms, Inc. $META

Watershed Asset Management L.L.C. Purchases 1,640 Shares of Meta Platforms, Inc. $META