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1. Trump-Xi Meeting lacked surprises.

Details on further aspects of the agreement will be key for the Asian stock rally, with the regional benchmark on course for its seventh straight monthly gain.

"The meeting represents a tactical pause or temporary de-escalation, rather than a structural breakthrough," said Masahiko Loo, senior fixed income strategist at State Street Investment Management in Tokyo.

2. There’s an AI trade in Europe…

Europe has precious few artificial intelligence technology plays, but it does boast clean energy and infrastructure champions that are vital to AI development. A basket of renewables and energy transition stocks has just broken a five-year-old record high after surging 38% in 2025. That annual rally outpaces even the Magnificent Seven and its AI hyperscalers, which have climbed 26%.

Government spending commitments, soaring electricity demand from data centers and a push to accelerate the switch to cleaner energy have powered the latest surge for Europe’s renewable sector.

3. …and it’s still cheap!

“Clean energy companies still trade at a discount to historical levels and therefore, even though you have seen some strong performance year to date, we really do think there is further to go from a power demand perspective,” says Helen Jewell chief investment officer of EMEA fundamental equities at BlackRock.

Jewell adds that AI energy needs are so high and so large that both energy suppliers and energy efficiency companies will be called on to make it a success story. As for utilities, they favor those that are not pure clean energy providers, but who supply this as part of their portfolio.

Despite the stellar rally, renewable stocks are far from pricey. In fact, their valuations remain at the bottom of a five-year range. At a P/E of about 15, they trade in line with the broader European market, unusual for companies tipped for high earnings growth. Their ranks includes utilities like Iberdrola, Engie, SSE and RWE.

The key to being inexpensive lies in soaring earnings estimates, as opposed to the valuation expansion that’s behind most of the recent market gains in Europe.

4. Alphabet has its moment.

First, there is antitrust relief: The regulatory fog has partly lifted. A Chrome divestiture is off the table for now, removing one of the worst-case scenarios.

Secondly, its TPU megadeal: Anthropic just locked in access to up to 1 million Google Cloud TPUs, bringing over 1 GW of AI compute online in 2026. The agreement is “worth tens of billions,” implying meaningful revenue growth acceleration for GCP.

Tensor Processing Units are Google’s custom AI chips, offering faster and more efficient performance than traditional GPUs for training and running large models. Anthropic’s multi-year deal marks the first hyperscale deployment of TPUs by an external AI lab—turning them from a niche option into a credible alternative to NVIDIA’s GPUs. It’s a marquee win for TPUs. If more deals follow, it could become a meaningful revenue engine, even for a $3+ trillion company like Alphabet.

Below: Cloud posted a +34% Y/Y growth

5. Time to revisit the S&P “equal weighted”.

Since the beginning of 2023, when the Magnificent Seven began to suck the oxygen out of the room, that equal-weighted index has lagged the regular, capitalization-weighted S&P 500 by 47 percentage points.

But it has had long periods of outperformance.

An index of the same 500 or so stocks that is equal-weighted, owning the same proportion of the largest and the smallest companies, rebalanced regularly, could be ready to shine.

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