Daily Europe

AI-linked stocks are experiencing a volatile reset, but robust capital expenditure plans and resilient demand indicate the long-term investment cycle remains firmly in place.

Key Takeaways

• 1.Near-term volatility in AI stocks is likely a repricing event rather than a fundamental shift in demand.
• 2.AI capital expenditure remains firm, supported by significant funding from major tech companies.
• 3.The AI supply chain is shifting towards broader compute hardware, benefiting CPUs, memory, optics, and power management.

Table of Contents

• AI volatility is back, but the capex story still looks firm
• From Circle One
• Thought of the day
• What to watch: 9 June
• Caught our attention
• Market update
• Global asset class preferences definitions
• Appendix