AI Capex Depreciation Risk Is The Catch To Record Earnings

The second quarter earnings season is in full swing. Currently, the entire earnings growth story is concentrated in the semiconductor and AI-infrastructure names. In the Equity 60/40 Growth model, we’ve held the AI infrastructure sleeve at model weight rather than letting price appreciation push it higher. The AI capex depreciation wave is coming.

The second quarter earnings season is in full swing. So far, the results are landing in line with or better than the upwardly revised Wall Street estimates. That’s the opposite of how this usually works. Analysts normally trim.