Nov 5, 2026 · 44 min
Investors debate whether the sell-off makes AI stocks attractive
Keep calm, stocks are on sale
The panel tests whether falling prices reflect opportunity or deeper risks around valuations, capital spending, regulation, and concentrated market leadership.
- 1Selective bottom-up analysis matters more than indiscriminately buying beaten-down technology and AI stocks.
- 2Utilities, energy, communications, and equal-weight ETFs offer alternatives to concentrated exposure in the largest technology companies.
- 3Rising AI infrastructure spending may support future demand, but business-model risk, valuation, and cash remain decisive.
Don't miss
The panel’s debate over whether AI efficiency can offset rising demand for compute and power expands the investment case beyond language models.
The brief
Rena hosts Jack Bowman, Julia Ostian, and Kenio Fontes as they examine a sharp sell-off and ask whether fear is obscuring genuine opportunities.
The panel argues that falling prices alone are not a thesis: political risk, regulation, taxes, earnings, and business models determine whether buying the dip makes sense.
Rising capital spending becomes the central test for AI investing, with the guests separating sustainable infrastructure demand from an indiscriminate buildout.
Utilities, energy, communications, and equal-weight exposure emerge as less obvious alternatives, including XLU, PAVE, Comcast, and the RSP ETF.
The discussion widens from AI efficiency to robotics, autonomous vehicles, and agents, then turns to how SpaceX, Tesla, and investor narratives shape valuation.
The closing lesson is defensive but not pessimistic: keep valuation, business-model risk, cash, and Treasuries in view while resisting beaten-down assets without a case.
What was said on this episode
32 statements · 26 positive · 4 negative · 2 neutral
- Kenio Fonteson Long-term stock investing amid political changePositive5:26
Five-year investors should not fear current political leaders when buying favored companies.
“if you are buying something that you like in 5 years from now, you have not to be afraid of Democrats, of the president and whoever, because those people will not be even in the house then.”
Listen at 5:26
- Kenio Fonteson AI data-center buildoutPositive6:58
Slightly slowing data-center construction is beneficial before infrastructure becomes unsustainable.
“before it gets out of hand, it's actually a good thing to slow down this buildout slightly.”
Listen at 6:58
- Kenio Fonteson AI stocksPositive8:01
Further AI-stock declines would prompt buying.
“if we get a couple of more days like this, why not? I would be buying for sure.”
Listen at 8:01
Roughly 40–45% of planned U.S. data centers were located in ERCOT.
“40, 40-some or 45% of planned data centers in the US were being built in the Texas grid, the ERCOT.”
Listen at 8:27
Slowing data-center construction can prevent a compute supply bubble.
“slowing things down will help us not go into a supply bubble, which is always a big threat.”
Listen at 9:28
- Kenio Fonteson AI token usagePositive13:53
AI token usage is growing extremely rapidly.
“token usage is growing through the roof.”
Listen at 13:53
TSMC and SK Hynix do not currently appear to be in an investment bubble.
“I bought TSMC, I added to my SK Hynix position and to my TSMC position. So these companies, I, I don't see any bubble for now.”
Listen at 14:50
Amazon is attractive because AWS is growing and monetizing cloud infrastructure.
“Amazon is one. That I'm bullish, not only because everything I just said, but also because of the AWS.”
Listen at 16:08
Google Cloud recently reported triple-digit revenue growth.
“Google Cloud just showed us triple-digit revenue growth.”
Listen at 16:39
- Kenio Fonteson Alphabet, Amazon, and Microsoft hyperscaler CapExPositive16:54
He is bullish on Alphabet, Amazon, and Microsoft hyperscaler capital expenditures.
“I think I'm overall bullish with the Alphabet CapEx, with Amazon CapEx, even Microsoft in the hyperscale segment.”
Listen at 16:54
He is bearish on neo-cloud companies.
“I'm not, I'm actually bearish on neo clouds”
Listen at 17:17
The 10-year Treasury yield will continue declining.
“I see rates, at least the market rates, like on the 10-year Treasury coming down still.”
Listen at 18:46
Falling market rates will benefit utilities more than other sectors.
“that'll benefit utilities more than anything”
Listen at 18:54
The market is overly pessimistic about Comcast.
“I think the market was overly pessimistic about the company.”
Listen at 19:30
Comcast has substantial upside potential.
“I feel that there is a large upside here.”
Listen at 20:14
Netflix currently presents an investment opportunity.
“Netflix. That's also a company that I recently bought and I think it's an opportunity right now.”
Listen at 20:52
Bloom Energy could experience a Micron-like rally if execution is successful.
“Bloom definitely could, and, uh, it could, it could turn into Micron kind of story, like, uh, with the crazy rally if they do everything correctly”
Listen at 21:30
Bloom Energy appears 60% undervalued on a PEG-ratio basis.
“if we take a look at the PEG ratio, it's like, uh, 60% undervalued.”
Listen at 22:43
- Kenio Fonteson Electrical grid replacementNegative23:25
Replacing the electrical grid could take up to a decade in some areas.
“I read that in some areas it will take as long as a decade to replace the grid.”
Listen at 23:25
A SpaceX–Tesla merger would increase Elon Musk’s control over Tesla.
“it's super advantageous for Elon Musk that they merge because he gains a greater control of Tesla”
Listen at 27:40
SpaceX and Tesla will probably merge.
“they're probably going to merge.”
Listen at 27:59
A merger would improve Tesla’s business and widen its competitive moats.
“I think it's much better for Tesla because they will be a much better company, wider moats.”
Listen at 28:47
He recommends building a position in an equal-weight ETF.
“the big push the last couple months for me has been building a position in the equal weight ETF.”
Listen at 31:01
RSP is the largest ETF offering equal-weight S&P 500 exposure.
“RSP is the largest ETF to do it.”
Listen at 31:18
RSP has recently outperformed as the broader non-mega-cap market remained resilient.
“RSP has been doing very well in comparison because the rest of the market is still okay.”
Listen at 31:50
The MN ETF provides exposure to AI-lab returns through total-return swaps.
“you do get access to all the AI labs through the MN ETF.”
Listen at 34:01
- Kenio Fonteson Private AI labsNegative34:12
He recommends avoiding private AI labs because they resemble neo-clouds.
“AI labs is like not so far from Neo Clouds for now. So I'm staying away.”
Listen at 34:12
- Kenio Fonteson Meta and NvidiaPositive35:28
He is buying more Meta and Nvidia after the sell-off.
“I'm buying more Meta, I'm buying more Nvidia”
Listen at 35:28
- Kenio Fonteson Amazon and MetaPositive36:09
Amazon and Meta will generate decent returns over five to ten years.
“in a 5 or 10-year timeframe, we will see some very decent returns, to say the least.”
Listen at 36:09
- Kenio Fonteson Current market panicPositive36:53
Market participants will forget the current panic within a few months.
“a couple of months from now we will forget that we were here today and everyone were panicking.”
Listen at 36:53
He recommends not buying neo-clouds or AI labs currently.
“I'm not buying NeoClouds. Uh, I'm, I'm not buying AI labs right now.”
Listen at 37:27
Investors should add at least a little when QQQ falls 5% in one day.
“if you're a tech investor or a big index investor, you own the NASDAQ 100, QQQ should never drop 5% a day without you adding at least a little”
Listen at 38:03
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
Books & mentions
RSP ETF
The episode discusses equal-weight exposure as a way to reduce concentration in the largest S&P 500 companies.
Weekly email
State of the Pod, every Monday
The week's most-discussed names and stories from podcasts, with the moments behind them. Free, five minutes, unsubscribe in one click.