Summary

• I feel more comfortable with the setup for the broader markets after Wednesday's hyperscaler earnings.
• I agree that CapEx will eventually normalize and that hyperscalers may be overbuilding. The key question is how investors are positioning themselves now, while the AI spending cycle remains intact.
• Corporate earnings are improving. FactSet lifted Q1 2026 growth to 27.1% and CY 2026 S&P 500 EPS growth to 21.3% despite the war and oil prices in the triple digits.
• I am not saying there are no risks. However, the market is looking past Hormuz because spillover effects remain limited, while core CPI and core PCE are still contained.
• I remain fully invested, and I continue to favor market segments where hyperscaler CapEx is likely to flow, like the semiconductor industry.

With hyperscaler earnings now out of the way, I think most of us can finally catch up on sleep.

Yes, Hormuz is still blocked, oil prices are still in the triple digits, and the recent headlines from the Middle

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