Nomura flags a tech segment as portfolio shelter from AI spending pressure
FROM THE WIRE · FINANCE.YAHOO.COM
Investing.com -- One corner of the tech sector offers "portfolio shelter" from the AI spending race, Nomura analysts say, pointing to deteriorating cash flow in big tech while cash piles up at companies on the other side of the trade, whose valuations assume earnings have…
Read at the source ↗MARKET IMPACTNEUTRAL✦ News Impact agent estimateTone: expected bearishFalling free cash flow at big tech can shift sector positioning and valuation views tied to AI capex.AI-generated summary
✦ IN BRIEF · AIAI-generated summary
- 01Nomura analysts led by CW Chung say AI investment cannot stop, based on third-quarter results.
- 02Meta's quarterly free cash flow turned negative at minus 2.1 billion dollars, its first time since IPO.
- 03Alphabet's quarterly free cash flow was minus 9.1 billion dollars for a second straight quarter.
NEWS IMPACT AND MARKET REACTIONChange since the story · reference
Amazon.com, Inc.250.50 USD+4.22%today +4.22%Negative Meta Platforms, Inc.615.12 USD+0.02%today +0.02%Negative Alphabet Inc.286.50 USD+2.38%today +2.38%Negative Microsoft Corporation524.75 USD+0.54%today +0.54%Positive
Impact and summary are estimates by the News Impact AI agent, not financial advice.Open in Markets