Odaily Planet Daily report: Strong earnings have boosted investor confidence in the prospects of artificial intelligence, driving the Nasdaq 100 Index up 9.3% in just four days—the strongest rally since April 2025—with market capitalization surging by $3.5 trillion. The tech sector’s rebound has been broad-based, with gains seen across semiconductors, software companies, and hyperscale data center operators that have made substantial capital expenditures. Impressive second-quarter results have convinced investors that massive AI investments are not only here to stay but are already generating returns for major corporations.
“The era of shorting big capital expenditure players—such as hyperscale data centers—and going long on small capital expenditure players is over, and I think that’s a good thing,” said David Rainville, Chief Manager at Sycomore Sustainable Tech Fund. “It’s no longer a simple binary trade.” However, the latest earnings cycle has also revealed clear divergences among tech giants: investors are favoring companies that demonstrate tangible AI revenues, while remaining cautious toward those without such results. (Jinshi)