00:00I think the business sentiment and the AI CapEx story still has further to go.
00:05As we look to 2027, we're looking at CapEx investment in hyperscalers this year that was
00:12$730 billion, but probably headed to a trillion dollars last year.
00:16And when you add in the data center financing needs, you also look at what is needed for
00:22cybersecurity. I mean, we're looking at numbers that are still going to be stronger next year.
00:27So the volatility doesn't surprise me, but I think the AI CapEx story remains one that's very
00:33much intact. Also, looking at the U.S. equity market, we have a number of other factors,
00:40the buybacks, which are supportive, as well as the retail flows. So I think that you will see
00:45that still on retail, there is still a sentiment to buy the dips here. The volatility doesn't
00:51surprise me because we've seen some pretty big moves here. But I'd also say the non-tech sector
00:56has held in very well as well. I mean, the earnings were stronger across the board than
01:03we had forecast in a number of different sectors.
01:07Which parts of the AI trade are you leaning into then, Joyce, at JPMorgan? Because, of course,
01:12we saw hyperscalers actually giving some ground to chip makers in recent months and then just in
01:18the last couple of days, just almost indiscriminate selling across the space. Where in the infrastructure,
01:24where in the AI build out look most attractive to you?
01:28Well, I think the data center build out is still enormous here. And that's affecting not just the
01:34equity market, but also the debt market. And we've seen debt issuance numbers that are topping
01:38$300 billion. We've seen inflows going into U.S. high-grade corporate bonds that are three times what
01:44they wore last year. So you've got the upstream story. You have the data center story. You also
01:49still have semiconductors as well. So the volatility, just given the moves that we have seen and just
01:56given the earnings revisions that we've seen, doesn't surprise me on a daily basis. But I think
02:01the trend is still going to be higher on the AI story. And I would characterize the U.S. cycle
02:07as more
02:08mid-cycle. I don't think it is actually that advanced. We still look at the needs until the end of
02:13the
02:13decade being in the order of, you know, $5 trillion for what you could need all in looking across
02:19data center financing and CapEx needs.
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