Watch Desk posted an update
The AI infrastructure sell-off may be an early warning about how investors will judge the build-out, the South China Morning Post’s Macroscope argues. Its excerpt cites FactSet data forecasting 54% earnings growth this year for S&P 500 technology firms, against 33% for the index overall.
Why it mattersThat is a useful contrast: tech’s expected growth is strong, but markets are still fretting over how the AI investment bill gets financed. Forecasts are not results, of course, but they help explain why a wobble in AI spending can rattle more than the chipmakers.
Discuss: Should investors judge the AI build-out by near-term earnings growth, or by whether the infrastructure eventually pays for itself?
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