The Wealth Consulting Group Chief Market Strategist Talley Léger said the AI theme has 'a long way to run', arguing that investors must take a 'leap of faith' on massive AI capital spending by tech hyperscalers like Alphabet, Meta, and Microsoft. Léger described a two-stage model shifting from tech concentration to diffusion, where the mega-cap producers hold their ground to fuel a transition to AI users. He acknowledged that compressed free cash flow at some firms, such as Alphabet going cash flow negative for the first time in over 20 years, is part of engineering future sales. Comparing the current Nasdaq cycle to past booms, he suggested the theme remains legitimate and has further to go.
