- 2025-12-04
- Posted by: kimsite
- Categories: Commentary, Insights, News
Click here to listen to the full interview.
CHERYL CASONE: Well, there’s been plenty of commentary about the markets and a potential pullback before the end of the year, but there’s still this optimistic vibe — particularly around technology stocks. This sounds like something Scott Martin would say. He joins me now from Kingsview Management.
Scott, good to see you. What do you mean by “the vibe”? What’s the vibe?
SCOTT MARTIN: The panic, Cheryl — at least in the near term — is gone. As you and Jack mentioned, we’re seeing that deleveraging possibly end with Bitcoin, and that’s spilling over into the Nasdaq today.
So listen, I believe a lot of the “weak hands,” Cheryl, are out of the market. I think they’re gone — they’ve been blown out, both in tech and in Bitcoin and some of the fringe assets. That sets a good foundation for the market to normalize as we head into the Fed meeting next Wednesday.
CHERYL CASONE: I’m glad you mentioned technology in particular. You’re expecting a bounce-back — including in the tech sector. Is the fear about tech valuations overblown, or are we still going to see wins and losers? That’s been the overall analysis of the group, especially with AI.
SCOTT MARTIN: Great point. Look at Google over the last several weeks — it hasn’t really felt this downward rush.
But then look at Oracle, which is one of our picks today because it’s been so smoked over the last three weeks. The valuation drop has been insane.
So if you look at some stocks that have held up, I wouldn’t chase those as an individual investor — and we’re not chasing them as portfolio managers. But names like Amazon, with the recent chip news against Nvidia, and of course Oracle — these are stocks that have come down considerably in valuation.
Their fundamentals haven’t really changed much — it’s more the emotional side of the investor community selling them off.
CHERYL CASONE: Booking gains before the end of the year makes sense for many. Oracle shares are on the rise; Wells Fargo just initiated coverage with an overweight. But there are still questions about their debt — they’re carrying about $105 billion. You still like this one?
SCOTT MARTIN: Yes — debt makes the world go round, Cheryl. Just look at the U.S. government for proof of that.
Oracle’s debt is structured pretty well. People made a lot of noise about their debt and the CDS — credit default swaps — and whether they’re falling behind.
Oracle has a great business outside of AI. They’ve got strong lending and service structures. And like many companies, they have to borrow to invest in the future. As they bring in more investment, they’re also putting capital to work, which is why you see that debt load.
CHERYL CASONE: Oracle shares are moving. I also want to ask you about Nvidia. CEO Jensen Huang is on Capitol Hill today meeting with lawmakers on AI. Senator Elizabeth Warren criticized that it’s a closed-door meeting. She says Huang should testify publicly about chip sales to China.
He spoke to Grady Trimble at Fox Business, saying the U.S. should get first access to chips before they’re sent to China.
Are you buying Nvidia here? And what do you make of this controversy on the Hill?
SCOTT MARTIN: Well, yeah — a lot of people want those meetings, so I don’t blame them for keeping it close.
But look — Nvidia is still the leader. The lead dog. The lead horse, Cheryl. There’s competition, sure, and plenty of companies are going after Nvidia’s chip dominance — U.S. versus China, wherever. But Nvidia is still out front.
The chips they’re releasing, the updates — the earnings are unbelievably strong. Production is scaling to meet demand.
It’s funny: Two days ago people were worried about too much AI demand. Today they’re worried about not enough demand. You see how fast this cycle moves.
Jensen Huang has been ahead of this game the whole time. Nvidia has pulled back — it’s not getting the same love as some other names. That’s why I think you buy it here.
CHERYL CASONE: That five-year chart looks amazing. What about NET? What about SMCI?
SCOTT MARTIN: Yes — Cloudflare (NET) and Super Micro Computer (SMCI). Some of the fringe players in cloud, storage, and servers.
These names have also been absolutely smoked over the last two or three weeks. Some of that comes from margin pressure, higher interest payments, leverage concerns — sure.
But the long-term prospects? Still strong. Like it or not, the space is going to get bigger and better. And a couple of these companies are in a great position to take advantage.
CHERYL CASONE: We’re going to be talking on the show about other AI plays you can make right now.
Scott, great to see you. Thanks for being here.
SCOTT MARTIN: Good to see you.
Investment advisory services offered through Kingsview Wealth Management, LLC (“KWM”), an SEC Registered Investment Adviser. Insurance products and services are offered and sold through Kingsview Trust and Insurance Services (“KTI”), by individually licensed and appointed insurance agents. KWM and KTI are subsidiaries of Kingsview Partners. KWM is an investment adviser registered with the Securities and Exchange Commission (“SEC”).
