Few Charts to End the Week

This report highlights a market rotation away from 'Mag 7' tech stocks into broader capex-linked sectors like defense, power, and semiconductors. It also emphasizes demographic trends influencing consumer spending in developed economies.

Key Takeaways

• 1.Investors are shifting away from 'Magnificent 7' tech stocks toward broader industrial, defense, and power sectors linked to global capital expenditure.
• 2.AI hyperscalers face scrutiny over return on capital expenditure despite projected record spending of $755bn in 2026.
• 3.Demographic shifts are creating long-term investment opportunities in sectors favored by older consumers, such as utilities and home improvement.

Table of Contents

• Few charts to end the week
• Prime Book: Mag 7 % of Total US Exposure (MV)
• The EU DC pipeline has more than doubled in one year
• Chip manufacturers appear to have benefited from AI capex, while investors have questioned the hyperscalers' return on capex
• Performance since 2025 of indexes and baskets exposed to global capex expansion
• The median stock in each region has experienced smaller returns this year
• Global Tech, Industrials and Infrastructure-related equity funds have had strong inflows since 2022
• Global Energy/Commodities saw meaningful inflows YTD
• Average monthly flows since January 2026
• Earnings growth and revisions have driven performance for most European sectors
• More in Macro

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