Austin Quan

"If that is the case, all of the sudden with Iran, hyperscalers and AI trade is now looking like a quality trade again because they are more insulated from what is happening geopolitically. I think there will be more flows into those companies." While rising energy costs are a headwind for data centers, hyperscalers have fortress balance sheets and massive cash reserves. In a stagflationary or geopolitically unstable environment, investors will flee cyclical sectors and hide in mega-cap tech, treating them as safe-haven assets that can self-fund their growth regardless of macro conditions. LONG. Hyperscalers offer a rare combination of secular growth (AI) and defensive balance sheet quality during a global supply chain crisis. A severe stagflationary recession could force enterprise customers to slash the cloud and software budgets that drive hyperscaler revenues.

"If that is the case, all of the sudden with Iran, hyperscalers and AI trade is now looking like a quality trade again because they are more insulated from what is happening geopolitically. I think there will be more flows into those companies." While rising energy costs are a headwind for data centers, hyperscalers have fortress balance sheets and massive cash reserves. In a stagflationary or geopolitically unstable environment, investors will flee cyclical sectors and hide in mega-cap tech, treating them as safe-haven assets that can self-fund their growth regardless of macro conditions. LONG. Hyperscalers offer a rare combination of secular growth (AI) and defensive balance sheet quality during a global supply chain crisis. A severe stagflationary recession could force enterprise customers to slash the cloud and software budgets that drive hyperscaler revenues.

"If that is the case, all of the sudden with Iran, hyperscalers and AI trade is now looking like a quality trade again because they are more insulated from what is happening geopolitically. I think there will be more flows into those companies." While rising energy costs are a headwind for data centers, hyperscalers have fortress balance sheets and massive cash reserves. In a stagflationary or geopolitically unstable environment, investors will flee cyclical sectors and hide in mega-cap tech, treating them as safe-haven assets that can self-fund their growth regardless of macro conditions. LONG. Hyperscalers offer a rare combination of secular growth (AI) and defensive balance sheet quality during a global supply chain crisis. A severe stagflationary recession could force enterprise customers to slash the cloud and software budgets that drive hyperscaler revenues.

"If that is the case, all of the sudden with Iran, hyperscalers and AI trade is now looking like a quality trade again because they are more insulated from what is happening geopolitically. I think there will be more flows into those companies." While rising energy costs are a headwind for data centers, hyperscalers have fortress balance sheets and massive cash reserves. In a stagflationary or geopolitically unstable environment, investors will flee cyclical sectors and hide in mega-cap tech, treating them as safe-haven assets that can self-fund their growth regardless of macro conditions. LONG. Hyperscalers offer a rare combination of secular growth (AI) and defensive balance sheet quality during a global supply chain crisis. A severe stagflationary recession could force enterprise customers to slash the cloud and software budgets that drive hyperscaler revenues.