Nasdaq’s Record Highs: Is the AI Boom Here to Stay?

Summary

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Podcast Summary: Nasdaq’s Record Highs – Is the AI Boom Here to Stay?

Podcast: Earn Your Leisure
Hosts: Rashad Bilal & Troy Millings (with Financial Analyst & Market Strategist guests)
Date: August 17, 2025

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Episode Overview

This episode dives deep into the Nasdaq’s recent record highs and investigates whether the surge, led by artificial intelligence (AI) giants, is here to stay. Hosts and guest experts break down the underlying business fundamentals, market sentiments, and global factors shaping the contemporary tech boom, drawing parallels to historical market cycles while offering actionable advice for investors.

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Key Discussion Points & Insights

1. The Magnitude of Nasdaq’s Surge

• [01:51] Financial Analyst:

  • Describes the Nasdaq hitting another all-time high, propelled by a new generation of tech companies (2024–2025 class).
  • Compares Nvidia’s current run with historic companies (e.g., Cisco and Netscape from the dot-com era), highlighting Nvidia’s superior business model and margins.
  • Strongly advises against shorting the Nasdaq, emphasizing the power of long-term investing in quality companies.
  • Highlights the “NBA-level” earning potential of holding high-growth stocks for decades.

  “Now is not the time to short the Nasdaq. The real move is to buy in and hold for a long period of time and don’t change that.”
  — Financial Analyst [03:22]

  • Notes that hedge funds have a record number of shorts on the Russell 2000, a stark contrast to the long positions on the Nasdaq.

2. Comparing Market Fundamentals: Today vs. Dot-Com Era

• [02:45] Financial Analyst:

  • Dismisses comparisons to Cisco and Netscape during the dot-com bubble, citing Nvidia’s much higher business margins (51–55% net margin).
  • Attributes Nvidia’s dominance to technological and architectural advantages that did not exist previously.

  “For a multi-trillion dollar company to still be operating at 51 net margin is absolutely … like a small business operating at 98 net margin. So this is one of the best companies ever.”
  — Financial Analyst [03:15]

3. Economic Indicators and Policy Tailwinds

• [04:56] Market Strategist:

  • Points to technical and fundamental indicators showing no imminent bear market.
  • Cites anticipated Federal Reserve rate cuts as a strong tailwind for large-cap tech.
  • Discusses easing of China tariffs and potential expansion of chip sales to China as positive developments.
  • Notes possible additional support if the US government permits more advanced chip sales to China.

  “All signs are pointing to rate cuts… Now there’s talks that you may be able to sell a higher chip to [China]. So now you’re growing that base.”
  — Market Strategist [05:54]

4. Will There Be a Pullback?

• [06:34] Market Strategist & Hosts:

  • Acknowledge minor pullbacks already occurred (January, April), but no severe correction is expected soon.
  • Some analysts speculate about a larger pullback at the start of next year, but current trends remain bullish.
  • Emphasize that recent dips have been short-lived buying opportunities rather than signals of an end to the bull market.

  “We saw one in January for sure, we saw one in April… Right now that flag is green, man.”
  — Market Strategist [06:41]

5. The Strength of the Tech Titans

• [07:03] Financial Analyst:
  • Lists the top Nasdaq tech companies—Nvidia, Microsoft, Apple, Google, Amazon, Meta, Broadcom, Tesla—as fundamentally sound, with no obvious candidates for shorting.
  • Encourages holding positions in these industry leaders.

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Notable Quotes & Memorable Moments

• On the Power of Long-Term Investing:

  “In 20 years he’ll be able to look up and from that initial investment maybe make 5 or 6 million dollars just holding 20 years.”
  — Financial Analyst [03:50]

• Highlighting Market Dynamics:

  “Hedge funds have the largest number of shorts on the Russell 2000 in history. That’s dramatically different from what’s happening in Nasdaq.”
  — Financial Analyst [04:41]

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Important Segment Timestamps

• [01:51] – Introduction to Nasdaq’s record highs; why the AI-led bull run is unique
• [03:00–04:20] – Nvidia’s business model, margins, and comparison to historic tech booms
• [04:56–06:11] – Economic indicators: rate cuts, tariffs, and geopolitical shifts affecting AI stocks
• [06:34–07:03] – Anticipated pullbacks and market sentiment for the remainder of the year
• [07:03] – The strength of Nasdaq’s leading stocks

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Episode Tone & Takeaways

The episode maintains its signature blend of practical market education and pop-culture energy. Rashad, Troy, and guests mix data-driven insight with relatable analogies (“NBA-level earnings,” “the 96 draft class of tech”) to demystify recent market movements for listeners of all backgrounds. The consensus: the AI and tech boom is built on real, sustainable business models and navigating short-term volatility should not distract from the long-term opportunity.

Bottom Line:

Don’t short the tech giants now—this is a generational opportunity to invest and hold for the long run. The AI boom is real, and regulatory/policy trends favor its continuation for now.

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Transcript

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[Financial Analyst]

Nasdaq's Record Run NASDAQ just hit another record high. Is this a fresh AI led bull leg or will it soon be undone? I want everyone to be very clear. I want you to stop wishing for a NASDAQ pullback because you may have gotten in too late or not at all. I think Nvidia had ushered in probably the if we're looking at like the class, like the 96 draft class, this 2025, 2024 class of tech companies are probably some of the best we have ever seen in the history of American enterprise. So will there be a pullback? Absolutely. But I'm seeing a lot of correction talk, a lot of recession talk. Is there a recession in the economy? Yes. And NASDAQ and Nvidia? Not so much. Two things can be true at the same time. I think there may be a probability of Nasdaq pulling back to 23 or 71 somewhere in the area. But as far as a long term 2020 drop, the companies are too strong. Nvidia AMD and I know that chart keeps circling around of Nvidia's growth versus Cisco's growth. The difference is Cisco didn't have the margins or Netscape during the dot com bubble didn't have the same kind of architecture in the, in the business model. For a multi trillion dollar company for them to still be operating at 51 net margin is absolutely 55. 55, that's like a small business operating at 98 net margin. So this is one of the best companies ever. Tesla solid, Apple starting to fight back. Google is solid. Now is not the time to short the market. The real move is to buy in and hold for a long period of time and don't change that. As I prep for invest fest and everything that I want to keep talking about like go someone put in chat what is Microsoft and Nvidia's all time return. That's the power what Rashad is talking about, Hey, I had an opportunity to buy a property. Now take the gains from that property and put it into something long term. In 20 years he'll be able to look up and from that initial investment maybe make 5 or 6 million dollars just holding 20 years. I know now it's being an NBA making 300 million a year. So this is the power of investing in quality companies. And in 2010 and for 2015, if I told you a multi trillion dollar company was going to usher in this wave and Open AI hasn't even went public yet, now is not the time to short the nasdaq. The Russell, the, the hedge funds have the largest number of shorts on the Russell 2000 in history. That's dramatically different from what's happening in NASDAQ. Please continue to hold for the next five years.

[Market Strategist]

Yeah, I think it's an interesting time. And if you look at the bull case, obviously, I mean just following the trend, if you just from a technical analysis standpoint, you don't see a bear market approaching. In fact when we talk about, you know, economic indicators, I know cpi, something gets brought up a lot and we'll see where inflation is at. But all signs are pointing to rate cuts. And if you know anything about rate cuts for large scale enterprise companies, that's going to help. Yeah and so if there's two that are being baked in for this year, we've been saying it's going to be two, is going to be two September Looks like it's going to be the month with we're just a month away from that. You're talking about rate cuts that's going to help. You're talking about another delay on this China tariff that helps. You're talking about now we're going to be able to sell not our top tier product in Backwell, but maybe some of our hoppers to China with a 15 quote unquote tariff.

[Financial Analyst]

And Trump said he may even let them sell a higher chip version to China.

[Market Strategist]

I was getting there. So now you're talking about you're expanding that market where you had lost maybe a 15 part of your rep. So like that's there on top of it. Now there's talks that you may be able to sell a higher chip to them. So now you're growing that base.

[Financial Analyst]

That's.

[Market Strategist]

And we're just talking about Nvidia, right? We're talking about that hyperscaler, that economy that thrives and grows off the production of. And the progress of Nvidia is just as strong when you're talking about a Broadcom and you're talking about Adele, all these companies that are going to benefit.

[Podcast Host]

From it, all these things help.

[Market Strategist]

So will there be a pullback?

[Financial Analyst]

I think we saw every day and every week.

[Podcast Host]

I think I thought we saw two already.

[Market Strategist]

Like we saw one in January for sure. We saw one in April. Could we see one here in the.

[Podcast Host]

Next four to six weeks?

[Market Strategist]

I think we'll see a slight pullback. I don't think it'll be something that will over 20 like a correction. I'm starting to see some analysts starting to predict that there might be one at the top of next year. But right now that flag is green, man.

[Financial Analyst]

Who the top companies in the nasdaq, Nvidia, Microsoft, Apple, Google, Amazon, Meta, Broadcom, Tesla. That's not a top seven or top five. I want to short this is the.

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