The Market Is Missing the Biggest AI Catalyst Yet

Kyle Reidhead (0:00)

Well, haven't we just gone through all the bear scenarios over the last like three months, which is why we've had this pullback. It was like Chinese open source models are gonna kill the frontier models. So that was the bear scenario that sort of played out. Then it was leverage, we're over levered. And so all of a sudden, we had to go through this like de-leveraging event. That played out. We had the rate hike scare last month, right? That didn't play out. So we've kind of gone through a lot of these issues already. And each time we sort of like the market sees through it.

LGD Sed (0:25)

What's up, everybody? It's LGD Sed here. And welcome to Milk Road Stocks, the daily market show that was hoping it was time for the bears to hibernate, but it turns out they're down at the river for one last big fancy supper. Today is September 16th, 2026, recording on the 15th. Are we too bullish on the show? No, really, like despite bad macro conditions and doomsday warnings, our guys seem to always paint a rosy picture in the end of how things will continue to rip. Well, today's a little bit different. We're making a change first and foremost on this weekly rollup. Martin, our lead researcher, will be taking my place every week. And he's starting off strong on this episode by challenging that bullishness that these guys always seem to spew. And as the guys debate what exactly is giving the AI trade some issues, they're also going to find time this week to look ahead, look at the agentic future that we've been promised, and also when exactly this AI job apocalypse is supposed to take place. All four of the guys on today's show run their own PRO portfolios in Milk Road. And if you want to see their moves, including which one of them sold a lot into cash last week, you can pay just a dollar to check it out at the link below. This membership also includes exclusive content like today's after hours episode which was recorded right after what you're going to see today and features the guys discussing their actual portfolio moves. That's the real alpha. And a reminder that our podcast today is free and that it wouldn't be possible without our partners at Nexo, the digital asset platform that lets you trade, earn, and borrow all in one place. Keep an ear out for more information about them later in the show.

Kyle Reidhead (1:47)

All right. We're starting off, no LG, so this is going to be a rogue show. We don't have a clue what we're talking about or what we're doing. It's just the analysts.

We've got Vincent back.

Martin is here. He booted out LG and the boys are just hanging out with no LG anymore. I don't know what we're going to talk about. We actually had no discussion prior to this, so we'll just have to figure this one out. But it's been a wild week, obviously. I think we'll cover a little bit about Dario and what he talks about with AI. But we got rate hikes. By the time I guess people listen to this, we'll already have that decision or maybe this will come out actually just before that. So let's go around table and just talk about markets. Vincent, I'm going to start with you back from vacation. Hopefully, you were still paying attention to markets. What's going on, man?

Vincent (2:29)

Back from vacation and straight into a rough week for the AI trade, I guess. But I think it was mainly because of macro. Oil above 100, 10-year treasury, around 5% fat hike or not, we will see.

Then obviously the kind of risk premium introduced by Dario. Then I think really amplified by Sam Altman and Elon, which I think pushed down the broad AI infiltrate. I think it's a buy the dip opportunity because the AI news are really no news in my opinion. And we can dive a lot deeper on why I think this is a nothing burger eventually. And also, Micron news in the past proved to be buying opportunities. So I remain bullish and buying dip selectively here.

Kyle Reidhead (3:22)

Melvin, you got something you want to add to that?

Melvin (3:24)

Yeah, it's basically the same view. Our favorite boogeyman is back over the weekend, Dario.

He basically scared the market. And obviously, Elon and Salman agree with that.

But yesterday, we had Jensen Huang coming out in the All In podcast saying, this is all just dumerism. He doesn't agree with what's happening. Yes, the risk needs to be taken seriously, but these are just overblown in his opinion. And Trump came out and said the same thing. We're not stopping for anyone. We're in a race with China. So that pushed the markets. Honestly, my portfolio is not really down based on what everything we have seen. It's pretty stable.