1. The Nasdaq 100 has now nearly erased all its valuation premium to the S&P 500.

With a forward P/E of around 19, absolute valuations are near the bottom of a 10-year range and well-below the average of 23 over the period. On a relative basis to the S&P 500, the ratio hit a 10-year low.
Democratic party policies are seen as less friendly toward the AI buildup and the development of new data centers.

2. Global data center capacity (in GW) scenario analysis by MS.

The forecast expects total global capacity to grow by +23% per year until the end of the decade, reaching ca 316 GW by 2030. (Base case in blue).

3. The question is shifting from how quickly AI revenues can grow to how efficiently that growth can be converted into cash.

The recent earnings season has added more anxiety to the mix, ahead of the much-anticipated Anthropic initial public offering. While the company’s latest earnings report was strong, investors homed in on its declining pace of growth.
The initial adjustment may emerge through rotation rather than outright liquidation. During the late October equity selloff, investors started to migrate from crowded, long-duration growth exposures toward defensive sectors and companies with stronger balance sheets and more durable free cash flow.
Such repositioning may temporarily cushion headline indexes, concealing a deterioration in underlying risk appetite.
Below: thus far in 2026 the equal weighted index is beating its cap-weighted cousin thanks to the recent lurch lower in all things AI.

4. Amazon projects growth above 40% through 2028 as free cash flow plunges.

Amazon CEO Andy Jassy believes AWS can become a $1 trillion annual revenue business within five to ten years.
That’s more than five times its current $184 billion run rate. AWS growth accelerated to 39% in Q3, backlog reached $578 billion, and Jassy now expects growth above 40% in both 2027 and 2028.
But the price tag is mind-boggling. Amazon’s trailing free cash flow plunged to negative $42 billion, while CapEx is expected to rise meaningfully above this year’s $220 billion in 2027.

5. Oil relief opens the door to a broader India recovery.

India's equity rally is gathering steam.

Since the early October lows, falling US Treasury yields and easing crude prices have lifted risk appetite – and the fundamentals back it up. Earnings beat expectations at +20% YoY and macro momentum remains firm. Progress on peace talks could push oil prices even lower towards fair value by stripping out the geopolitical risk premium – a meaningful tailwind given India imports 85-90% of its crude.
The flow story could be the real catalyst. If foreign long-only investors simply neutralized their current underweight in Indian equities, that alone could unlock roughly US$115bn in net inflows.

Below: Strongest revenue growth since 2024.

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