1. Alphabet spending plans bode well for European DC builders.

While some big-tech investors are starting to worry about capex plans, Citigroup analysts believe that Alphabet's spending roadmap bodes well for Europe's electrical equipment makers, companies that are pivotal to the data centre build-out.
"With typical lead times of ~18 months we think this underpins ongoing order strength at least into H2’26," writes Citi analyst Martin Wilkie, in reference to Europe's electrical equipment suppliers.

Investing is not rocket science and we are buyers of Legrand.

2. Mag 7 vs. Other 493.

The Mag 7 are expected to show extraordinary earnings growth.

3. Big tech debt situation is larger than what is reported.

A Nikkei investigation found that Alphabet, Microsoft, Amazon, Meta, and Oracle have $1.65 trillion of off-balance-sheet obligations, exceeding the $1.35 trillion of debt they officially report. These commitments—GPU contracts, data center leases, and joint ventures—remain largely invisible under current accounting rules until facilities become operational. Meta alone reportedly has $420 billion in hidden obligations, while Oracle's exposure has exploded over the past four years.
The key risk? As AI infrastructure comes online, these commitments will gradually move onto balance sheets. If AI demand falls short of expectations, expensive assets could face write-downs, with losses ultimately flowing to shareholders and the private credit investors who financed the AI buildout.

4. Apple unseats Nvidia as AI bets shift.

The shift in the pecking order illustrates that investors are broadening their focus beyond the most obvious beneficiaries of the AI boom, such as Nvidia, which had been at the helm for nearly a year. Apple is reclaiming the top spot for the first time since April last year.
"Apple is less exposed to capex intensity and better positioned to monetize AI via services, ecosystem lock-in, and hardware upgrades. The re-rating reflects confidence in earnings durability rather than speculative AI upside."
Some analysts say Apple is sitting on an AI gold mine in the form of the personal data that lives on every iPhone. The data could make Siri's answers more useful and the assistant more capable.
The challenge is that such data is locked away in operating systems in the name of privacy and the company would have to find a way to unlock its value.
However, shares are already pretty expensive. We’re sticking with Nvidia.

5. “Platforms are favorably positioned for the agentic era.”

With the ability to research, manage, and ultimately transact on behalf of consumers, agentic commerce can reduce friction and power the secular shift online.
This contrasts with the market view that the current leaders could be disrupted as agentic commerce grows.
Morgan Stanley sees Amazon, Walmart, Alibaba, MercadoLibre, Sea Ltd., and Allegro as platforms that are favorably positioned for the agentic era.
Below: MS scorecard captures qualitative and quantitative metrics plus analyst views.

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