Baird Strategist Sees Software and Cybersecurity Leading Next Tech Phase

Industry
โดย Yahoo Finance·US·Read original
Summary · why it matters

Baird tech strategist Ted Mortonson forecasts that hyperscaler capital expenditures will reach about $800 billion this year and could hit $1.1 trillion by 2027, driven by demand outstripping supply in compute and early-stage agentic adoption in enterprises. He notes that while semiconductor stocks have surged 61% and software indices are flat, the software sector is seeing short covering and institutional interest in system-of-record names. The security industry has been transformed by the introduction of Mythos, boosting names like Cloudflare, Crowdstrike, and Palo Alto, though these stocks now trade at nearly 30 times enterprise value to revenue, with some insider selling on the periphery. Mortonson cautions that changes in security architecture show up in pipeline rather than annual recurring revenue, and the street may not yet grasp how quickly that pipeline converts to orders.

Impact on stocks 4

Cybersecurity & Digital Trust▲ · 3 stocks
Cloud & Digital Infrastructure▲ · 1 stocks

Theme Impact 7

Related news

▲impact 5

US Hyperscalers to Spend Up to $725 Billion on AI Infrastructure in 2026

The top five US hyperscalers are projecting a combined capital expenditure of $660 billion to $725 billion for 2026, nearly double their 2025 outlays, as the AI build-out shifts from software to physical infrastructure. Microsoft is guiding for roughly $175 billion in adjusted capital expenditure for both FY2026 and FY2027, with two-thirds of quarterly spend going to short-lived assets like CPUs and GPUs and the rest to long-lived data center infrastructure, and it added 1 gigawatt of capacity in Q3 FY2026, doubling its global footprint in two years. Amazon AWS has raised its 2026 capex guidance to approximately $220 billion, with CEO Andy Jassy saying AI capacity is expected to remain constrained through 2027 and contracted demand extending into 2028. Meta saw profit drop 14% in Q2 2026 despite a 28% revenue increase as its build-out, including a 1 gigawatt data center in Ohio and a Louisiana facility that could scale to 5 gigawatts, compressed margins, while Alphabet raised its 2026 capex guidance to as much as $205 billion and its Google Cloud backlog more than doubled year-over-year to $240 billion. The Stargate joint venture involving Oracle, OpenAI and others targets up to $500 billion in infrastructure investment by 2029, and Oracle's FY2026 capex reached $55.7 billion, more than doubling from the previous year.
AMZN ▲GOOG ▲META ▼MSFT ▲ORCL ▲
Artificial Intelligence ▲Cloud & Digital Infrastructure ▲Energy Transition & Power Demand ▲
Yahoo Finance·4hRead more →
impact 4

Citi: Data Center Opposition Has Not Weakened AI Construction Pipeline

Citi says growing political opposition to artificial intelligence infrastructure ahead of the November U.S. midterm elections has not materially weakened the data center construction pipeline. Data center development has become a bipartisan flashpoint, with local governments introducing moratoriums and at least 15 state legislatures proposing tighter regulatory restrictions, yet spending remains strong as AI infrastructure demand continues to support development. The impact has been concentrated among speculative and early-stage projects, which are increasingly delayed or cancelled during local approval processes, while late-stage developments that have already secured sites and grid connections continue to move ahead. Hyperscalers are seeking workarounds to power constraints and local restrictions, with Amazon pursuing direct investment in nuclear development with Dominion Energy and Meta securing a major nuclear power purchase agreement with Constellation Energy. Citi does not expect another market shock comparable to the emergence of DeepSeek, arguing investors have already adjusted to the prospect of highly efficient Chinese models, though it flags a potentially greater risk from governments restricting models deemed too dangerous, which could abruptly create excess computing capacity.
AMZN ▲CEG ▲D ▲META ▲
Energy Transition & Power Demand ▲Artificial Intelligence Cloud & Digital Infrastructure
Investing.com·5hRead more →

IREN Fair Value Trimmed to US$79.03 as AI Cloud Wins Meet Build Out Risks

IREN's fair value estimate has been trimmed from US$80.93 to US$79.03, a modest adjustment reflecting a mix of growing AI cloud contracts and ongoing questions around execution and supply build out through 2027. The revision lifts revenue growth assumptions to 168.01% from 125.79% and net profit margin expectations to 11.73% from 5.79%, while the future P/E assumption drops to 31.26x from 90.29x and the discount rate rises to 9.41% from 8.83%. On the bullish side, JPMorgan shifted IREN from Underweight to Overweight with a US$65 price target, citing a partnership with Nvidia, new customer signings and higher industry pricing, while H.C. Wainwright raised its target to US$90 after IREN announced US$2.8b of new multi year AI cloud contracts and lifted its 2026 AI cloud annual recurring revenue target to more than US$4b. Northland initiated IREN at Outperform with a US$99 price target, and Freedom Capital upgraded the stock from Hold to Buy. Freedom Capital nonetheless flagged execution on supply additions over the next two years as a central risk, noting the story depends heavily on adding capacity on schedule.
IREN ▲JPM ▲
Artificial Intelligence ▲Cloud & Digital Infrastructure
Simply Wall St·17hRead more →
© 2026 MarketDXNews