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ONE MAN'S CAPEX IS ANOTHER MAN'S REVENUE

Markets have been jittery about debt-led AI spending plans from major tech companies - but maybe they just need to look elsewhere for a boost.

"I think what is underappreciated is how much hyperscalers are putting in and that someone else's CapEx is someone else's revenues," said Nataliia Lipikhina, head of EMEA equity strategy at JPMorgan Private Bank.

Plans from tech giants including Microsoft, Amazon, Alphabet and Meta to spend over $600 billion on AI just this year have "a really nice impact on a lot of sectors," she said.

That of course includes semiconductor companies, which Lipikhina said stand to be the biggest beneficiaries, but it doesn't end with them.

"Utilities, especially in the U.S., is something that we're positive on, given the really, really strong power demand that we're seeing in the markets, particularly coming from the artificial intelligence," she said.

Lipikhina also flagged industrials as another sector that could get a boost from AI, highlighting the sector in Europe as "the highest conviction idea that we had for, I believe, a couple of years now."

Beyond AI, industrials are also supported by Germany's fiscal stimulus measures, she noted.

So far this year, the STOXX 600 industrial goods and services sector .SXNP has added just over 10%, outperforming the 7% rise for the broader STOXX 600 .STOXX.

(Sophie Kiderlin)

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EARLIER ON LIVE MARKETS:

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