Current Rally is 'V-Shaped Recovery for the Ages' Says Troy Gayeski
Speakers
Troy Gayeski
— Chief Market Strategist, Invesco
Summary
Troy Gayeski discusses investment opportunities in AI infrastructure and big tech stocks, highlighting their attractiveness due to growth at reasonable prices. He explains the V-shaped recovery in markets and warns of future risks such as AI spending cuts and debt concerns. The conversation focuses on leveraging private equity for AI infrastructure and the current valuation appeal of hyperscalers.
- Troy Gayeski analyzes the V-shaped recovery pattern in equity markets since the Eurozone crisis.
- He identifies AI infrastructure as a key investment area, offering growth at reasonable prices through private equity.
- He finds big tech stocks, particularly hyperscalers, attractive due to low multiples and strong near-term growth.
- He warns of a future risk if hyperscalers cut AI spending after 12-15 months, which could cause a correction.
- He discusses the impact of U.S. debt and deficits on yield curves and equity multiples.
- He contrasts private equity valuations (7-13 times earnings) with public markets like the Russell 2000 (19 times).
- He mentions SpaceX's diversification benefit but does not recommend IPO participation.
- He emphasizes the importance of monitoring AI ROI and government spending for market sustainability.
Trade Ideas
AI infrastructure offers growth at reasonable prices.
The biggest exposure to benefit clients is through AI infrastructure plays such as digital infrastructure financing, power control systems, and those involved in rack and cooling. This offers a powerful way to capitalize on AI growth without paying unreasonable prices, as middle market private equity provides entry at 7-13 times earnings versus public markets like the Russell 2000 trading at 19 times.
Big tech stocks are attractive due to low multiples.
Hyperscalers or the Magnificent Seven minus Tesla are at borderline growth at a reasonable price levels, with the lowest multiples they've been in quite some time and still tremendous growth in the near term, making them attractive for investment.
Up Next
This Bloomberg Markets video, published April 21, 2026, features Troy Gayeski discussing BOTZ, XLK, XLU, SMH, MAGS. 2 trade ideas extracted by AI with direction and confidence scoring.