The Markets

Still Bullish on Big Tech

14 snips
Aug 8, 2025
Strong earnings have pushed US tech giants to new heights, raising questions about future growth potential. Experts discuss the impressive performance of big-cap companies in e-commerce, cloud services, and digital advertising. Despite economic uncertainties and tariff concerns, a cautiously optimistic outlook emerges for the tech sector, especially with advances in artificial intelligence. Insights into market dynamics reveal a divergence in stock performance, highlighting the AI industry's potential impact on upcoming economic indicators.
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INSIGHT

Strong Growth & CapEx in Big Tech

  • Big tech reported accelerating growth in e-commerce, public cloud, and US digital advertising during Q2 earnings.
  • Capital expenditure is rising as the tech sector invests heavily in AI development and infrastructure.
INSIGHT

Long-Term AI Growth Perspective

  • AI-related stocks like semiconductors surged about 70% since April lows, reflecting a strong run in the theme.
  • The AI journey is expected to be multi-year or even decade-long, despite short-term fluctuations.
INSIGHT

Tech Sector & Macro Environment

  • Tech is moderately sensitive to economic policy and interest rates, benefiting slightly from lower rates.
  • If growth cools moderately with potential rate cuts, tech could perform well; however, overly slow growth could pose risks due to cyclicality.
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