Ed Ludlow

And we've seen earnings expectations actually climb throughout this war, not because of the geopolitical headwinds, but because of the continued strength in this AI narrative.

We remain in a deeply compute-constrained environment, and many of those dynamics are favorable for some companies to cross this AI value chain.

You look at tech, right, in terms of forward earnings, and there's been compression.

But like other people on the program in the last maybe seven days or so have said, look at the biggest names in the sector, maybe on a weighting basis at index level, and they're back to where they were before the war even started.

So the question I put to you is the same I've done to all the other buy side and strategist names we've had is, has this fundamentally altered the outlook for CapEx?

Which I think was Cara's question.

Has it altered the growth outlook for the world's biggest technology names?

No, because we think that that growth outlook is inextricably linked to demand.

And what we've learned, and you even can look at revenue expectations and realize revenue from the model labs as a signal of that demand, and that demand continues to beat expectations.

Every single hyperscaler this past earnings season said, if we had more capacity on board today, revenues would be higher.

All of this is continuing to funnel investment into AI CapEx.

Where I think this geopolitical situation is relevant and potentially a headwind is around the cost of that CapEx.

The economies that are most dependent on oil from this region, Taiwan, Korea, are also some of the most important bottlenecks and suppliers when it comes to AI hardware.

And if they continue to face...

elevated prices for significantly longer.

They're going to pass along those prices to U.S.

buyers, which are tech companies.

Just really quick, because I think we want to get to what's happening in credit as well.

But chips have massively outperformed year to date.

The Sox is up more than 20 percent.