And welcome to Tech Check. I'm Dear Drabaz. Jim Kramer is off tonight. So we are bringing you a special edition of Tech Check for full hour. And it's just in time. We are at the halfway point of the year.

Tech has ward back. What looked like a downturn or the end of a cycle in 2022? Perhaps it was all just a blip. Economist expected a recession. Investors were pessimistic.

Rates were rising. It was all shaping up to be a nightmare for tech. But the nightmare never happened. So this hour we will discuss the dynamic and AI investing, the lack of tech ideas and the downstream impact on Bay Area real estate. But in the stock market tech has regained even expanded its leadership. The NAV Jack is having its best first half in 40 years up 30% Apple $3 trillion market cap. AI darling Nvidia has just about tripled. Meta is back Netflix is back along with Tesla.

Alphabet in Amazon. The so called magnificent seven. Their response will for 85% of the S&P's rally this year. So what now this week the economic forecast they got better rates may have peaked and yet tech.

Tech basically flat since June 15. So are we at the beginning of a new book run for tech or was that it is it time for the rest of the market to catch up here with us to dig into all of that is Dan Niles founder and senior portfolio manager for the Satori fund. Dan good evening to you and thank you so much for joining us. Let's start really basic where do we go from here this was sort of the half that defied a lot of folks expectations.

Well you really have a big surge following Nvidia's results if you go back to when they report on a 24th since that period of time you know S&P's up about 70% and video is up close to 40% and that really took the S&P from 4100 to 4400 or so and so I think you know that's driven obviously by valuations and multiple expansion so we have earnings season coming up.

That's going to be really important if there's any kind of disappointments because right now everybody's so optimistic on AI but over this last week you saw three very big tech companies report my crime.

SYNIX come out and you know you didn't.

Accenture and all three of them the four numbers went down even though all of them talked about AI being a big driver for their business but the promise everything else is slowing down faster than AI can ramp to offset it so Nvidia I think is in a bucket all of its own because they are the

more and then you have everybody else.

I also think Dan of the market sort of pre Nvidia results and post Nvidia results because before they came out with that sort of blow out guidance the AI hype cycle was something that was sort of in the future but what Nvidia did was say that actually it's here and they're going to be monetizing it this year so I wonder how that changes expectations for some of the other tech giants that are going to report in the weeks ahead like Microsoft and Google that have been part of this hype cycle but we haven't really seen that monetization.

Well and I think that's exactly the problem you need a graphics chips and everybody's buying them from Nvidia it's the only place you can get them and so.

You've got this huge surge but for some some like Google for example because you saw a couple of downgrades on that stock very recently they're talking about well this is going to cost them more for a turn search results and people may not be clicking on as many ads so there's pluses and minuses for a lot of these

other companies and investors right now are just saying wow Nvidia's revenue estimates for next quarter went up over 50%.

I've never seen that in 30 years in large cap tech of being in this business and so you know valuations have really gone up a lot especially in technology and if you don't have for numbers going up to match like you saw with

Accenture cynics and micron you could see so off as you did with them and to be fair they want big selloffs but you know people aren't really

putting them in the leaders category now you got the leaders that after reports so it all begs the question Dan of where do we go from here we've

been talking about this on CNBC all day because we are at that halfway point markets have sort of in tech in a particular has defied

expectations have a listen to what Jeremy Seagal Wharton School of Business professor he mentioned to us on air earlier and then I'll ask you to respond to it.

Tech investors it's a win win for them they say listen it's a long as acid we have a recession you know tech is mostly immune and if we have a recession the

federal stop raising interest rate maybe lower interest rate that's really good for our long live assets that we have so everyone I'm piling into tech because they say that it's a win win no matter what happens to the economy.

Yeah and Dan in addition to that tech has almost become a defensive play because you look at an apple or a Google or a Microsoft balance sheet there's just so much cash there what do you think?

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