Caroline Hyde

They differ in many different ways, and also in their sources of revenue.

And I think it makes sense that Oracle is one of the more riskier companies that is tapping these bond markets, and you're seeing that being reflected in CDS spreads.

But that also can't be extrapolated to the entire shift right now towards debt markets to help finance these data center builds.

And I'll also add, look, when it comes to cloud services, the business model is one of the most cash-generative business models in the world.

So at the end of the day, these bonds are also being tied to services, business operations that have tended to do quite well for these companies.

It's interesting, of course.

deciding where the margin accrues we're going to have dell hp after the bell many feeling that margin is being eroded because of the cost of memory meanwhile we'll get micron next week with its earnings and many anticipating they're strong because of the memory demand there from your perspective is there still room to run in just the tech trade more broadly or has that shift into more value names and certainly with the context of the fed change things longer term into the end of the year

We still think we're quite early in this AI wave, but we've seen a chapter or two.

And moving forward, I think the focus is not going to only be on compute needs and capacity needs, but also on AI utilization.

And what companies are really critical for that, whether it's in software, what companies are leading the way in financials and entertainment in adopting AI.

And then also how...

Once we learn more about the end user demand for AI and the pricing power of these AI services, that's going to give us a lot of clarity around the ROI around these AI investments.

So is that what we need?

Is it ultimately the revenues of companies outside of the world of tech to vindicate?

That's what pushes us higher in terms of real context for you.

Is it December when we get the Fed decision?

What is the catalyst, do you think, for us to reassess where we are in valuations?

I'd say it's less of the kind of macro backdrop really here and much more of the kind of proof point around the monetization of AI.

I think the more that you see businesses ramping up their IT budgets, the stickiness that you see in those investment spending, and then also AI delivering.

And we've seen some proof cases of that so far.