Gabriela Santos

Investors are punishing "Mag 7" companies for high AI Capex if revenue doesn't immediately follow, while simultaneously realizing that *someone* has to build the physical infrastructure for AI. This sentiment shift drives a rotation away from concentrated tech exposure into the "beneficiaries" of the spend. If AI requires massive power and physical build-outs, the companies providing the raw materials, energy, and industrial machinery will capture the Capex dollars regardless of which AI model wins. Long the infrastructure layer (Industrials, Materials, Utilities) as a hedge against Tech concentration. A broader economic slowdown reducing demand for commodities and energy.

Investors are punishing "Mag 7" companies for high AI Capex if revenue doesn't immediately follow, while simultaneously realizing that *someone* has to build the physical infrastructure for AI. This sentiment shift drives a rotation away from concentrated tech exposure into the "beneficiaries" of the spend. If AI requires massive power and physical build-outs, the companies providing the raw materials, energy, and industrial machinery will capture the Capex dollars regardless of which AI model wins. Long the infrastructure layer (Industrials, Materials, Utilities) as a hedge against Tech concentration. A broader economic slowdown reducing demand for commodities and energy.