AI Trade Splits as Earnings Season Rewards Cash Discipline

Industry
โดย Bloomberg·Read original
Summary · why it matters

Equity investors are learning that not all artificial intelligence trades are created equal this earnings season. While S&P 500 firms are on track for a 29% surge in second-quarter earnings per share, the index has been flat since mid-July as traders penalized heavy AI spenders like Meta Platforms Inc. and Alphabet Inc., while rewarding Microsoft Corp. for preserving cash reserves. European stocks have fared better, with the Stoxx 600 advancing 1.3% as its members posted a 19% profit surge, benefiting from lower tech concentration. The semiconductor supply chain also saw gains, with Lam Research Corp., Schneider Electric SE and Prysmian SpA among outperformers on robust AI-enabling demand. Profit expectations continue to rise on both sides of the Atlantic, with US earnings revisions seeing net upgrades for 15 straight weeks, the longest streak since 2022.

Impact on stocks 10

Artificial Intelligence± Mixed · 5 stocks
Meta Platforms Inc.
META
▼ NegativeCapitalrelevance

Penalized for heavy AI spending, which is a capital allocation concern.

Microsoft Corporation
MSFT
▲ PositiveCapitalrelevance

Rewarded for preserving cash reserves, indicating disciplined capital management.

Semiconductors · 3 stocks
Lam Research Corp
LRCX
▲ PositiveDemandrelevance

Outperformer on robust AI-enabling demand in semiconductor supply chain.

Energy Transition & Power Demand · 1 stocks
Prysmian SpA
0NUX
▲ PositiveDemandrelevance

Outperformer on robust AI-enabling demand in semiconductor supply chain.

Digital Finance & Tokenization · 1 stocks

Theme Impact 3

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