UniCredit
June 4, 2026
IT Sector – It’s the Earnings, Stupid
Daily UpdateEquitiesInformation Technology
The global IT sector rally is powered by a structural AI-fuelled earnings boom, with valuations in the US and emerging markets actually declining despite significant price gains.
Key Takeaways
- 1.Global IT returns are fundamentally driven by earnings growth rather than valuation expansion, distinguishing this cycle from previous bubbles.
- 2.Artificial Intelligence capital expenditure by hyperscalers and governments is a structural driver for semiconductors and cloud computing infrastructure.
- 3.Emerging Markets IT has seen extreme earnings-driven gains, with earnings growing over 209% while valuations compressed by 20%.
Table of Contents
- IT sector – it’s the earnings, stupid
- THE CONTEXT
- THE DATA
- OUR VIEW
- TODAY'S DATA RELEASES
- Legal Notices
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Authors
Christian StockerEdoardo CampanellaFrancesco Maria Di Bella
Securities
MSCI All Country World IT IndexMSCI USA IT IndexMSCI Europe IT IndexMSCI EM IT Index
Themes
AI-Driven Earnings BoomEarnings vs ValuationsAI Infrastructure Capex
Regions
North AmericaEuropeGlobalUnited States