. >> adam parker. >> he's such a good friend, but you can't remember his name. >> what's his name again? >> my best friend what's his face. >> there's knocks and then there's feelings. i was going to call him adam sandler, by the way. >> that's a compliment. >> there's facts and feelings. when you talk about amd, the feeling i have -- i listened to josh, i think amd will be fine, will participate in generative ai and over the long term will be an ai winner. as you point out momentum has broken but something else has broken. you can't ignore the fact there is a deterioration in revenue, down 18% the previous quarter. and now compare that to with it being up an average of 52%. revenue is in decline. >> you've sold texas instruments. that's gotten hurt. >> that's taking the exposure down, the industry was the highest single industry we had in the etf. that comes down now, the second highest. >> auto desk, checkpoint, cognizant, palo alto. you're getting bigger in cyber? >> palo alto stands out. i own that personally. we have the ability to take a position in what is a very strong winner. >

how far can this rally run it was pushed by ai hype, but some say it needs more let's ask adam parker, the founder and ceo of a tvivariate research a remarkable run and rally it's a similar kind of story, right? all these megacap stocks, not a one are in the red >> yeah. i mean, as we talked about last few week, i mean, in years where the market's up a lot, january through october 31st, it almost always rallies november, december i think there's been 38 years the last 100 years you've been up 10% or more then the market is up 32 of those 38 the last two months is it a self-fulfilling prophesy, people chasing, a catch-up all of the above it's a combination that, and you get, you know, some things you can sink your teeth in about the fundamentals and you're off to the races. multiples are going higher a champagne for the market >> does that make sense to you >> the investors i talk to obviously have been saying for a while they think this could ham. i think the question is what did they sell in december, what could rotate in january? it seems like 100 years ago, but it was only a year a

we have adam parker and allen cantorwitz about what this mean for microsoft and the chaos.he thinks today and anastasia amorosa will join me. >> josh brown. >> invitation homes. >> skilled nursing and a good place to hide out for now. >> okay. liz young. >> emerging markets ex-china i don't like the geopolitical risk there and it keeps benefiting as the dollar keeps falling. >> what's yours? >> we own trade web with volumes increasing and better overall market environment and i like the push above 100 >> joe t.? >> apple 191 and nvidia pushing toward 900 with earnings tomorrow i'll see you on "closing bell. >>> thank you, scott welcome to "the exchange." i'm kelly evans. ahead this hour, from dominance to disarray. first came sam altman's open ai and then came the backlash and now it seems he's working for microsoft, it seems and that news sending shares to all-time highs and they want the open ai board to resign and that's all we're going to talk about right now. joining me are cnbc's steve kovac and deidre bosa for this hour along w

difference to the rally if it continues to be led by the biggest names in the market let's ask adam parker, the founder and ceo and cnbc contributor, the knock on the rally all year does matter or not >> not really. not really if you're trying to beat the s&p 500, then you have to own a chunk of those names, we've been saying that for a couple of years, and if your job it to beat the s&p, you got to risk manage those names and get your results elsewhere. as we've been saying, it is very unlikely think in the next three to six months that the small cap companies will have more achievable estimates or more margin expansion than the base search it is unlikely why? you need wages to be more beneficial commodities. depreciation pricing and mix. the small cap companies don't have as much as that as the big ones i think it is hard to have a big market rally and not have the magnificent seven participating. >> of course, but it is a matter of the other stocks that are not participating, and you know, look, when the s&p was at 4,000, people hated it, because they're like it is only being led by sev

i mean, we're in a period now where we're getting a lot of '24 playbooks and whether kostin or adam parkermes. >> right. >> so, you know, i guess part of that is you just don't want to fight the indexes, a lot of hazard if you're trying to outperform being underweight these stocks but also, as i say, the clarity of the earnings trajectory, the nasdaq 100 now trades under 25 times earnings that's not cheap by any stretch but about the five-year average. it was at 30 times at the peak and we should remember, last year, you know, alphabet had a down year in earnings, amazon had a tough year in earnings it wasn't just about the valuations getting squeezed. >> what are we looking at next year then? i guess i'm trying to draw a sense of the trend here in terms of what you're telling me? >> it's rare to have a two-year draw down in the nasdaq 100. historically it's happened two times in the last 30 years that wasthe tech crash in the early 2000s and the global financial crisis big picture, the direction of mean reversion will help you that being said, if we just stay flat right here and go to nex