AI capex spending has been a driving chip stocks: Analyst

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Advanced Micro Devices Noticias

Stacy Ragson,Even Meta

Advanced Micro Devices' (AMD) second quarter results have fueled optimism that the AI trade may not be over yet, leading to a pop in Nvidia (NVDA) shares...

Bernstein managing director and senior analyst Stacy Ragson tells Morning Brief he believes that what's been driving this uptick in tech is capex spending from companies like Meta for their AI projects."Even Meta reported last night. Not only do they take their capex guide up for the year, they said that they're going to have like probably substantial increases next year and so I think that's really what's important.

They took their own A I guidance up a little bit, but I don't think they took it up any more than people thought they were going to. And so you do want to see those, those numbers, but this was a concern if you go back, I don't know, a quarter or two ago, there was a big mismatch at that point between like where the Capex outlook was at the time and a lot of these A I names and we've continued to see the, the Capex guides actually go up materially, I think even meta reported last night and, and not only do they take their Capex guided for the year, they said that they're gonna have like probably substantial...

Um because as much as the stock has gone up, the earnings of estimates have gone up far more than that.Um I mean, they need to clearly, I clearly the numbers need to go up. And, and there's also a little bit of, you know, they're, they're kind of in a, in a fight right now.He said that, um, you know, the, the risks of under building were a lot bigger than the risks of over building right now, right?

I think the, the opportunity the numbers we will see will, will be up interesting 2026 potentially the, the, the big test.I think the spending is gonna continue.WWE's SummerSlam to be filled with action - and lots of sponsors

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