Traders Reaching for Skin in the AI Game

Goldman's Tony Pasquariello highlights a 'feeding frenzy' in the AI trade, characterized by a spot-up/vol-up pattern and a massive shift in hyperscaler spending toward capex.

Key Takeaways

• 1.The dominant market pattern is 'spot up / vol up', with a 'feeding frenzy' for call options as traders seek exposure to the AI narrative.
• 2.Hyperscale tech companies are aggressively shifting capital allocation from share buybacks (-64%) to massive capex ($755B projected for 2026).
• 3.International markets linked to AI hardware, specifically Taiwan (TWSE) and Korea (KOSPI), are significantly outperforming global peers.

Table of Contents

• Momentum
• Korea
• Taiwan
• Breadth
• Mega IPOs
• Charting 'signs of the times'

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