Dan Niles, founder and portfolio manager at Niles Investment Management, joins 'Money Movers' to discuss the AI trade, the market at large, and more.

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Dan Niles, founder and portfolio manager at Niles Investment Management, shared his perspective on the current AI market, noting that while some tech stocks have recently pulled back, the sector has not yet reached its speculative peak. He compared the current AI build-out to the early years of the Internet boom, emphasizing that it often takes several years before a clear market peak is reached and only a few companies ultimately dominate.

Niles also commented on recent economic data, highlighting encouraging inflation figures and the potential for continued easy monetary policy. He suggested that investors might consider buying tech stocks during periods of weakness, anticipating a positive end to the year and the possibility of further market support from future Federal Reserve actions.

Dan Niles on AI bubble peak: 'You're not there yet'

Joining us this morning is Niles Investment Management Founder and Portfolio Manager Dan Niles. Got some thoughts on the AI trade and the market at large. Dan good to see you again. Good to see you too Carl. So a lot was made of Broadcom's inability for example to rally after its earnings. But maybe the story can be different with Micron today. Yeah. I mean I think you have to look at the short term picture in the long term picture. So in the short term picture what's changed is now really starting at the end of October. People went ahead and started going. Can everybody actually win in a I can all of them make their forecast. Can opening I actually spend one point four trillion in capital commitments when they're going to exit the year at a 20 billion dollar run rate in revenues. And this is something we've been saying for a while. If you look at the aftermath of the Internet right. You had one winner in e-commerce Amazon and one winner in search. That's Google. You had one winner in social. That's meta. You know streaming Netflix audio Spotify. But for the last three years it's been everybody's going to win. Nobody's going to lose. And so that obviously unless it's very different this time it's probably not the way this is going to ultimately shake out. So I think that made sense. Having said that we're only three years into this A.I. build out. And if you go back and you look at the Internet it took about six years until you got to that bubble peak. And over that time Cisco's revenues quarterly were up 15 and a half times. You look at in video over three years their revenues have gone up on a quarterly basis about nine point six. So from either a time basis or from how much has been spent if you compare this to the Internet you're not there yet. So I think this is like 1997 or 98 when Cisco went down 37 percent and 38 percent in the middle of those years and still finished the years up 31 percent and 150 percent. So I think this is just a healthy pullback as people get more discerning. So is that a longer way of saying you buy weakness in tech. Yes I'm being long winded. But yes that's the short vision version. Carl I think you get a Santa Claus rally. I think December the month of December finishes up. I think you know the CPI numbers you got today were really encouraging because it means you can still look forward hopefully to easy money when you've got the core coming in at the lowest level since March of 2021. And you know that the new Fed chair in May he's only going to be appointed if he wants to cut rates a lot. And so if you can get that you prop you might get another year of easy money to go with this.

Under a law passed by Congress and signed by President Trump, the Justice Department has until Friday to release its files on the Jeffrey Epstein case. House Democrats released more photos from the estate of the convicted sex offender. Scott MacFarlane reports.

Washington

House Democrats release more Epstein photos ahead of DOJ deadline

The European Commission announced it will delay the signing of the Mercosur trade agreement until the new year after Meloni asked for more time. No date has been set. Backers hope deal won't be further derailed.

Brussels

Mercosur signature delayed to January after Meloni asked for more time

President Trump on Thursday signed an executive order to reclassify marijuana as a Schedule III drug. CBS News White House reporter Aaron Navarro has more on that and the president's year-end address from Wednesday night.

Trump signs executive order reclassifying marijuana

President Donald Trump laid out what he claims are the reasons that America's economy is thriving in an address to the nation. This comes as Americans remain concerned about high prices.

Trump touts economic record during address to nation

Multiple sources tell CBS News a person of interest has been identified in the mass shooting at Brown University. CBS News' Tom Hanson reports.

Providence

Person of interest identified in deadly Brown University shooting

Brazil’s Senate passed a bill that could drastically reduce former President Jair Bolsonaro’s 27-year prison sentence for plotting a coup, potentially cutting his time behind bars to just over two years.

Rio de Janeiro

Brazil Congress passes bill to cut Bolsonaro prison term

EU leaders are split in Brussels over using frozen Russian assets to fund Ukraine. Poland backs urgent action, while Belgium resists over legal and financial risks. Ukraine is pressing for a decision by year’s end.

Ukraine Invasion

EU leaders urge swift decision on frozen Russian funds for Ukraine

The U.S. military said Wednesday that it attacked a boat accused of smuggling drugs in the eastern Pacific Ocean, killing four people on the same day the House rejected efforts to limit President Donald Trump’s power to use military force against drug cartels.

New U.S. strike on alleged drug boat kills four

The U.S. Justice Department said late on Wednesday (December 17) the federal government was liable in the fatal January 29 collision of an Army Black Hawk helicopter and American Airlines regional jet that killed 67 people near Reagan Washington National Airport.

U.S. admits liability in fatal Black Hawk-American Airlines crash

Nick Reiner made his first court appearance after being charged with two counts of first-degree murder in the killing of his parents, Rob Reiner and Michele Singer Reiner.

Los Angeles

Nick Reiner appears in court on murder charges in killing of parents

The United States on Wednesday (December 17) approved $11.1 billion in arms sales to Taiwan, marking the largest ever U.S. weapons package for the island, which is under increasing military pressure from China.

U.S. approves $11.1 billion arms package for Taiwan, largest ever

EU leaders will gather in the coming hours to vote on potentially using nearly 200 billion dollars in frozen Russian assets to support Ukraine. But it's a controversial and risky plan.

EU leaders to vote on Ukraine loan backed by frozen Russian assets

Nick Reiner made his first court appearance on Wednesday since being arrested for the killings of his parents, Rob and Michele.

Nick Reiner makes first court appearance since parents' deaths

Vladimir Putin said Russia would achieve its goals by diplomatic or military means and would seek to expand a “security buffer” zone in Ukraine.

Moscow

Putin warns Russia will extend gains in Ukraine if peace talks fail

Newly-released surveillance video shows Nick Reiner at a gas station convenience store just hours after he allegedly fatally stabbed his parents, Rob and Michele Reiner, and minutes before he was taken into custody.

New surveillance video shows Nick Reiner before his arrest

U.S. President Donald Trump announced on social media a "total and complete blockade of all sanctioned oil tankers" going in and out of Venezuela. Some details remain unclear, including when the order would be implemented and how many tankers could be involved.

Caracas

Trump orders blockade on Venezuela oil tankers

A man who allegedly opened fire on a Hanukkah celebration at Sydney's famed Bondi Beach has been charged with 59 offences, including murder and terrorism, New South Wales Police said.

Council of the City of Sydney

Accused Bondi Beach gunman formally charged with 59 offences

The Trump administration has issued a full travel ban on five more countries as well as people traveling on documents issued by the Palestinian Authority. It also imposed new limits on 15 other countries.

Trump expands travel ban, restrictions to include 20 new countries

Australia mourns victims of the Bondi Beach shooting – As police prepare charges against the surviving gunman.

Bondi Beach shooting: Funerals begin as investigation continues

Four days into the manhunt, law enforcement officials in Providence, Rhode Island, are still unable to publicly identify a suspect, despite a $50,000 reward and pleas for help.

Police release new images of person of interest in Brown shooting

Nick Reiner will be charged with two counts of first-degree murder with special circumstances for the killings of his parents, Rob Reiner and his wife Michele Singer Reiner, who were found dead in their home over the weekend, Los Angeles County District Attorney Nathan Hochman said.

Rob Reiner's son to be charged with first degree murder of parents

U.S. military actions in international waters near Venezuela are under scrutiny following a September 2nd strike on a boat the U.S. claimed was transporting drugs, though no evidence has been provided.

U.S. bombings in international waters face scrutiny over Venezuela

The U.S. military says it has conducted another series of deadly strikes on three alleged drug boats in the Eastern Pacific, killing eight people. CBS News congressional correspondent Nikole Killion reports on that and more from Capitol Hill.

U.S. hits three more alleged drug boats in the Pacific, killing eight

U.S. President Donald Trump has followed through on his threat to sue the BBC over a misleading video edit of a speech he made on January 6, 2021, and filed a lawsuit against the media corporation on December 15. He will be seeking 10 billion dollars in damages.

London

Trump sues BBC over misleading video editing of speech

Ukrainian President Volodymyr Zelenskyy says a proposal to end his country's nearly four-year war with Russia are "very workable" and could be finalized within days, but he warns key issues remain.

Kyiv

Zelenskyy says 'workable' peace plan could be presented to Russia soon

On December 16, the Paris labour court ruled on the long-running dispute between Kylian Mbappé and his former club, PSG. It ordered PSG to pay over 60 million euros to the player in unpaid wages and bonuses.

Paris

Mbappé to be awarded over 60 million euros by PSG, French court rules

Police say the alleged gunmen who opened fire at a Hanukkah celebration in Sydney's Bondi Beach had traveled to Mindanao in the Philippines last month, as investigators probe ties to extremist networks.

Bondi Beach

Islamic State link eyed after Bondi Beach gunmen's Philippine visit

Zelenskyy hails progress with the US during Berlin talks about security guarantees. Europeans vow to protect Ukraine, including via military means, against Russia in the future. But disagreements over territories remain.

Berlin

EU vows to assist Ukraine against future Russia attack at Berlin talks

Australia's prime minister said a mass shooting at a Hanukkah celebration at Bondi Beach appears to have been motivated by ISIS ideology. Meanwhile, mourners flocked to the site to lay flowers and grieve for the people killed, including a 10-year-old child.

Bondi Beach shooting motivated by ISIS ideology: Australian PM

Four people have been arrested in California - charged with plotting a series of bombing attacks on multiple targets on New Year's Eve.

Dan Niles on AI bubble peak: 'You're not there yet'

Breakdown

See The Full Story

Rise of AI