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David Einhorn’s Greenlight Fund: “We Can’t Make Sense of the AI Math” Just how massive can AI spending get? Meta Platforms’ latest move — a record-breaking $27 billion private-credit deal to fund a new Louisiana data center — might have pushed even Wall Street’s limits. But it’s not just everyday investors who are struggling to make sense of the numbers. In our Call of the Day, billionaire David Einhorn and his $2 billion hedge fund Greenlight Capital say they’re “refusing to join the AI frenzy,” calling the current enthusiasm mathematically unsound. Einhorn, who correctly called Lehman Brothers’ downfall before the 2008 crash, said a month ago that AI-related spending is “so extreme that it’s really, really hard to understand.” In its latest quarterly letter, Greenlight doubled down: “When it comes to AI, doing the math is essential. The numbers simply have to make sense — and right now, they don’t.” The firm cited McKinsey’s projection of $6.7 trillion in global data center investment by 2030 — a figure it believes will require “extraordinary leverage” to finance. By Greenlight’s calculation, the industry would need to generate $2 trillion in annual revenue by 2030 just to earn a reasonable return. “Something’s got to give,” the letter warns, likening today’s hype to the dot-com bubble, when nobody knew “who would be the last buyer or the last short seller.” It’s been a tough road for Greenlight this year — the fund reported a 3.6% loss in Q3, bringing its 2025 gains to just 0.4%, compared to the S&P 500’s 14.8% rise. Still, Einhorn says there are no regrets: “While others are doing better right now, many are taking risks that we find hard to justify.” Instead of chasing AI, Greenlight is leaning into biotech and utilities. The fund highlighted Coya Therapeutics (COYA) — where it’s the largest shareholder — as a potential standout, citing optimism around the company’s clinical trials for an ALS (Lou Gehrig’s disease) treatment. “When AI startups with little more than a PowerPoint are getting multi-billion valuations, we’d rather invest in Coya — a $100 million company with real potential.” Greenlight also disclosed a medium-sized stake in Pacific Gas & Electric (PCG), expecting state-backed recovery after devastating wildfires. Its gold exposure through Green Brick Partners (GRBK) helped cushion the quarter’s losses, though gains were partly offset by a housing hedge. The fund closed out its Teck Resources (TECK) position with a solid profit but criticized the miner’s coal spinoff and merger with Anglo American (AAL). Einhorn’s bottom line: “This is still the most expensive market we’ve ever seen. Our best move is to stay cautious and disciplined.” John PaulJohn Paul is the founder of DayTradeToWin, a trading education and software company established in 2008, supporting traders worldwide. His expertise focuses on price action-based futures trading strategies and structured market analysis. DayTradeToWin delivers trading education, indicators, and software tools designed to help traders apply disciplined, rule-based decision-making across global futures markets. He is the creator of multiple trading methodologies, including the Sonic System, Atlas Line, and Trade Scalper, which help traders identify structured opportunities in markets such as the E-mini S&P 500 (ES), Nasdaq (NQ), crude oil (CL), and gold (GC). Official website: https://daytradetowin.com daytradetowin.com

Bill Smead Bets on Forgotten Sectors as AI Mania Runs Hot As Wall Street rides an AI-fueled rally, veteran investor Bill Smead is staying grounded — and looking far beyond Silicon Valley. Smead, founder and chief investment officer of Smead Capital Management, believes that when the AI boom fades, it’ll be average Americans — not tech giants — who keep portfolios alive. Through his $4.5 billion Smead Value Fund (SMVLX), Smead focuses on “buying great businesses when they’re deeply out of favor” and holding them long term. “We look for consistent profits, strong balance sheets, and defendable market positions,” he told MarketWatch. Avoiding the AI Frenzy Unlike many funds chasing big tech, Smead’s top holdings sit in consumer discretionary and energy, not AI. While his fund has lagged the Russell 1000 Value Index this year, it’s ahead over the past five and ten years. “I don’t envy people making money in the racy stuff,” he said, adding that AI investments are being made “like drunken sailors on leave.” Smead expects a “lost decade” ahead — similar to the years after the dot-com bubble and financial crisis — with two bear markets likely in the next seven to eight years. His strategy: avoid what will hurt most when the tide turns. Investing in Everyday America Smead sees risk in baby boomer spending drying up when markets stumble, though his son and co-manager Cole believes younger generations will carry on the economy. Their solution is to invest in companies tied to the real economy — the kind that serve the everyday consumer. One Quiet Tech Bet Though skeptical of AI hype, Smead still holds Qualcomm (QCOM), a company delivering 40–50% returns on equity for a decade. “Nobody’s paying attention to them because they’re not part of the AI story — and that’s exactly why they’re cheap,” he said. If Qualcomm grows earnings 10% annually for the next ten years, Smead believes it could be “a spectacular stock” — proof that patience and value still matter, even in an AI-obsessed market. John PaulJohn Paul is the founder of DayTradeToWin, a trading education and software company established in 2008, supporting traders worldwide. His expertise focuses on price action-based futures trading strategies and structured market analysis. DayTradeToWin delivers trading education, indicators, and software tools designed to help traders apply disciplined, rule-based decision-making across global futures markets. He is the creator of multiple trading methodologies, including the Sonic System, Atlas Line, and Trade Scalper, which help traders identify structured opportunities in markets such as the E-mini S&P 500 (ES), Nasdaq (NQ), crude oil (CL), and gold (GC). Official website: https://daytradetowin.com daytradetowin.com

Wall Street Takes a Breather After Record-Breaking Run U.S. markets cooled off Thursday as both stocks and gold slipped from record highs, signaling a brief pause after weeks of powerful gains. The S&P 500 fell 0.3%, marking only its second loss in 10 days. The Dow Jones Industrial Average dropped 243 points (0.5%), while the Nasdaq edged down 0.1%. After a stellar rally, gold also retreated — down 2.4% to below $4,000 per ounce — as traders caught their breath following a surge fueled by expectations that the Federal Reserve may soon begin cutting rates to support the economy. Markets have been on a relentless climb — with the S&P 500 up 35% since April — raising concerns that prices might have run too far, too fast, particularly among AI-related stocks that have dominated recent gains. Dell Technologies dropped 5.2%, the day’s biggest S&P 500 loser, though it remains up nearly 11% for the week after highlighting strong AI growth prospects. Tesla slipped 0.7% after U.S. regulators opened a probe into its “Full Self-Driving” software. Helping offset those losses, Delta Air Lines jumped 4.3% after reporting better-than-expected summer profits and projecting stronger year-end earnings, citing a steady recovery in business travel and solid demand. With the U.S. government shutdown halting key economic updates — including the weekly jobless claims report — investors are turning to corporate earnings to gauge the economy’s pulse. PepsiCo rose 4.2% after beating quarterly expectations and posting stronger North American drink sales. Akero Therapeutics surged 16.3% after Novo Nordisk announced plans to buy the biotech firm for up to $5.2 billion. MP Materials gained 2.4% after China imposed new export restrictions on rare earths, and Costco climbed 3.1% on an 8% year-over-year revenue jump in September. At the close: Overseas, performance was mixed. Ferrari slid 15.4% in Italy after disappointing forecasts, while Shanghai stocks rose 1.3% after reopening from a holiday. Japan’s Nikkei 225 advanced 1.8%, driven by an 11.4% jump in SoftBank Group following its $5.4 billion deal to acquire ABB’s robotics division. In bonds, the 10-year Treasury yield inched higher to 4.14% from 4.13%. John PaulJohn Paul is the founder of DayTradeToWin, a trading education and software company established in 2008, supporting traders worldwide. His expertise focuses on price action-based futures trading strategies and structured market analysis. DayTradeToWin delivers trading education, indicators, and software tools designed to help traders apply disciplined, rule-based decision-making across global futures markets. He is the creator of multiple trading methodologies, including the Sonic System, Atlas Line, and Trade Scalper, which help traders identify structured opportunities in markets such as the E-mini S&P 500 (ES), Nasdaq (NQ), crude oil (CL), and gold (GC). Official website: https://daytradetowin.com daytradetowin.com