With government spending on IT and tech continuing to rise, questions around the impacts of investments have become more pressing.
Nancy Tengler, CEO and CIO at Laffer Tengler Investments, explains on the Morning Brief that while government efficiency might improve, it will drive demand for technologies that boost productivity.
“I think at the margin where we’re going to see spending, and we’ve seen it with Palantir (PLTR), is that the government is going to really focus on spending efficiently — which means productivity-improving technologies,” Tengler says.
Tengler highlights that as the government looks to cut jobs, it will rely on companies like ServiceNow (NOW) and Nvidia (NVDA) to fill the gap. Regarding Intel (INTC), Tengler expresses doubt about the AI semiconductor manufacturer’s future, stating, “I just worry that this company is so far behind. Can you make money on a trade? I think you can. Can you make money for the long term? I don’t think so.”
She compares Intel’s struggles under former CEO Pat Gelsinger to Xerox Holdings’ (XRX) failure to capitalize on key innovations, to which Tengler believes there are better investment opportunities elsewhere.
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This post was written by Josh Lynch
