WS #15210
Microsoft and Synopsys saw price targets raised by Wells Fargo, reflecting sustained confidence in AI-driven enterprise spending. HPE surged on a $1.2B order from Vultr, highlighting the intense demand for data center infrastructure. Rocket Lab's record commercial launch deal underscores the commercialization of space-based infrastructure. These developments reinforce the bullish thesis for the AI supply chain, decoupling from broader macro rate concerns. The latest US PCE data showed headline inflation rising 0.3% m/m and core PCE slowing to 0.2% m/m, both below consensus forecasts. This cooling trend alleviates immediate fears of a Fed policy error and supports the equity market's current rally, particularly for growth stocks that are sensitive to real rates. The data counters the bearish signal from the 10-Year yield hitting multi-decade highs, suggesting the bond market may be overpricing the persistence of inflation.
Tech & AI Infrastructure
Microsoft and Synopsys saw price targets raised by Wells Fargo, reflecting sustained confidence in AI-driven enterprise spending. HPE surged on a $1.2B order from Vultr, highlighting the intense demand for data center infrastructure. Rocket Lab's record commercial launch deal underscores the commercialization of space-based infrastructure. These developments reinforce the bullish thesis for the AI supply chain, decoupling from broader macro rate concerns.
The latest US PCE data showed headline inflation rising 0.3% m/m and core PCE slowing to 0.2% m/m, both below consensus forecasts. This cooling trend alleviates immediate fears of a Fed policy error and supports the equity market's current rally, particularly for growth stocks that are sensitive to real rates. The data counters the bearish signal from the 10-Year yield hitting multi-decade highs, suggesting the bond market may be overpricing the persistence of inflation.