Small: Mag 7 Remains Reliable as AI Trade Expands, Energy Crucial in Buildout

• The market is in the early innings of a multi-year productivity and infrastructure revolution driven by AI.
• NVIDIA and mega-cap tech (Mag 7) are still strong, but the market is broadening out, which is crucial for a healthier bull market.
• Opportunities are expanding beyond software to power companies, grid operators, cybersecurity, and infrastructure providers.
• Specific infrastructure and high-yield income plays are favored, including Constellation Energy, GE Vernova, Bloom Energy, Eaton, Quanta Services, Ares Capital, Blue Owl Capital, and Blackstone.
• Nuclear energy (Oklo) is seen as a viable alternative, while solar and wind are not currently favored.

Jeffrey Small is bullish on the market, seeing it in the early stages of an AI-driven multi-year productivity and infrastructure revolution. While mega-cap tech (Mag 7) remains strong, he emphasizes broadening investment opportunities in the AI ecosystem, particularly in power, energy infrastructure, and high-yield income plays, as the market expands beyond just a few dominant tech names.