Barclays Strategist: Profits of Large U.S. Tech Companies Will Remain Resilient

The team led by Venu Krishna wrote that the earnings per share expectations of S&P 500 constituent stocks have remained stable for half a year and have not been affected by recent market volatility triggered by the Iran conflict. They believe that the capital expenditure supercycle remains a main theme in the market, and that with the widespread adoption of artificial intelligence and continued strong demand for cloud services, large technology sectors will continue to lead in capital expenditure. In addition, the strategists pointed out that after the recent sector revaluation, large technology stocks have shown attractiveness, with the market expecting their profit margins to expand significantly and earnings to grow strongly, providing positive support.