Nomura flags this tech pocket as ’portfolio shelter’ from AI spending pressure

Investing.com -- One corner of the tech sector offers "portfolio shelter" from the AI spending race, Nomura analysts say, pointing to deteriorating cash flow in big tech while cash piles up at companies on the other side of the trade, whose valuations assume earnings have peaked. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » Analysts led by CW Chung said third-quarter results from five big tech companies reaffirmed that "AI investment cannot stop." But the companies' financial strength is pulling apart. Quarterly free cash flow turned negative at Meta, at minus $2.1 billion, its first time since its IPO, and at Alphabet, at minus $9.