Market Musings 7/31/2024
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
Markets got a shot in the arm today after Microsoft’s plans to increase #AI spending reinvigorated the tech rally.
So, we’re seeing a bit of a bifurcation for #AI stocks.
First, you have infrastructure names like Nvidia and Broadcom.
These companies are already benefiting from a huge server buildout.
At least today, they seemed to be off the races again on Microsoft’s plans to boost an already high CapEx spend.
And then, we have the providers like Microsoft and Google.
They are spending a lot to build up their #AI capacity.
However, investors are starting to question if they’ll be able to get a return on it.
These stocks seem to have plateaued recently with investors looking for proof vs. just hype that there’ll be able to monetize it.
So, near-term, we still see an ongoing arms race in #AI infrastructure.
#AI is still very early and service providers can’t be caught underinvested if the monetization starts to pan out.
However, we’ll likely continue to see markets shift from rewarding hype to needing proof.
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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.
Original Photo by Tara Winstead.