Barclays Strategist Says Big Tech PEG Under 1 Is ‘Completely Underappreciated’

Industry
โดย 24/7 Wall St.·Read original
Summary · why it matters

Barclays strategist Venu Krishna argued on CNBC that money fleeing Big Tech is moving in the wrong direction, calling the setup ‘fantastic’ because the group excluding Tesla trades at a PEG ratio below 1 with roughly 30% earnings growth in the first quarter and multiples that have already been marked down. Alphabet trades at 16 times earnings with 22% revenue growth, Meta at 20 times with 33% growth, Microsoft at 27 times with an AI run rate up 123%, Amazon at 33 times with AWS growing 28%, and Apple at 38 times on 16.6% growth. Krishna’s team raised its S&P 500 target to 7,800, projecting 21% earnings growth this year decelerating to 15-16% next year, while cutting multiples 5-10%. He sees 18 months of contracted earnings visibility for chip stocks from hyperscaler spending with no sign of reducing, forecasting capex reaching $1.2 trillion by 2028, about $250 billion above consensus. The 10-year Treasury yield at 4.38% in the 76th percentile of the past year poses the main risk, as higher rates could deflate the compressed-multiple setup.

Impact on stocks 8

Cloud & Digital Infrastructure▲ · 3 stocks
Amazon.com Inc
AMZN
▲ PositiveCapitalrelevance

Barclays strategist highlights Amazon's PEG ratio below 1 and strong earnings growth, calling the setup 'fantastic'.

Alphabet Inc Class C
GOOG
▲ PositiveCapitalrelevance

Barclays strategist highlights Alphabet's PEG ratio below 1 and strong earnings growth, calling the setup 'fantastic'.

Microsoft Corporation
MSFT
▲ PositiveCapitalrelevance

Barclays strategist highlights Microsoft's PEG ratio below 1 and strong earnings growth, calling the setup 'fantastic'.

Artificial Intelligence▲ · 1 stocks
Apple Inc.
AAPL
▲ PositiveCapitalrelevance

Barclays strategist highlights Apple's PEG ratio below 1 and strong earnings growth, calling the setup 'fantastic'.

Spatial Computing / AR/VR▲ · 1 stocks
Meta Platforms Inc.
META
▲ PositiveCapitalrelevance

Barclays strategist highlights Meta's PEG ratio below 1 and strong earnings growth, calling the setup 'fantastic'.

Financials▲ · 1 stocks
Semiconductors▲ · 1 stocks
Electrification & Mobility▲ · 1 stocks

Theme Impact 2

Related news

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·10hRead more →
impact 4

Nvidia-Backed Nscale Files for US IPO After $1.02 Billion Loss

Nscale, the London-based AI data center developer backed by Nvidia and Microsoft, filed publicly for an initial public offering in New York, seeking to raise as much as $3 billion. The company reported a net loss of $1.02 billion on revenue of $140.6 million for the six months ended June 30, compared with a net loss of $368.9 million on revenue of $10.4 million a year earlier, according to its Friday filing with the US Securities and Exchange Commission. Spun off from a cryptocurrency mining operation in early 2024, Nscale was valued at about $14.6 billion in a March Series C round led by Aker ASA and 8090 Industries, with Nvidia and Nokia Oyj also participating. The company has agreed to add more than 30,000 Nvidia chips to an existing rental agreement with Microsoft at its Narvik, Norway gigafactory, and Anthropic has agreed to spend $45 billion to rent AI cloud computing power from its flagship West Virginia data center development. The offering is being led by Goldman Sachs, JPMorgan Chase and Morgan Stanley, with shares expected to trade on the New York Stock Exchange under the symbol NSCL.
NVDA ▲MSFT ▲GS ▲JPM ▲MS ▲0MJX.LSE
Artificial Intelligence ▲Cloud & Digital Infrastructure
Bloomberg·12hRead more →
▲2

Tigress Analyst Raises Alphabet Price Target to Street-High $485

Tigress Financial Partners analyst Ivan Feinseth reiterated a Strong Buy rating on Alphabet and raised his price target to a Street-high $485 from $415, implying roughly 39.6% upside. The bullish thesis centers on Alphabet turning its massive AI investments into growth across Search, Cloud and Gemini, with Feinseth arguing AI Overviews and AI Mode can make Google more useful for complex, high-intent queries. Recent results support that argument: Alphabet's second-quarter revenue rose 24% from a year earlier to $119.8 billion, Search and Other revenue increased 17%, YouTube advertising grew 13%, and operating income climbed 30% to $40.77 billion. Google Cloud revenue surged 82% to $24.8 billion, operating income more than tripled to $8.8 billion, margins reached 35.6%, and its $514 billion backlog gives visibility into future enterprise demand. Gemini has reached 950 million monthly active users, more than 9 million monthly developers and roughly 22 billion API tokens processed per minute, and Feinseth sees monetization opportunities across subscriptions, APIs, enterprise software, agents and productivity products, though the risk remains that Alphabet must prove its enormous AI spending generates sufficient returns.
GEMIGOOG
Cloud & Digital Infrastructure ▲Artificial Intelligence ▲
GuruFocus·13hRead more →
© 2026 MarketDXNews