This report monitors current AI-related market volatility and risks regarding capital expenditure, while maintaining a constructive long-term outlook for AI-related demand. It also highlights the extreme weakness of the Japanese Yen and potential risks for currency markets.
Key Takeaways
- 1.The firm maintains a tactical preference for AI 'picks and shovels' despite rising risks regarding the sustainability of hyperscaler capex growth.
- 2.Japanese Yen weakness persists due to negative real rates, but investors are cautioned against chasing the currency lower due to potential intervention.
Table of Contents
- From Circle One
- Thought of the day
- What to watch: 30 June
- Market update
- Global asset class preferences definitions
- Appendix
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Authors
Mark Haefele
Securities
SPXPhiladelphia Semiconductor Index
Themes
AI Infrastructure CapexCurrency Intervention
Regions
EuropeAsia PacificUnited StatesJapanGermany