The Fwd P/E of the Tech sector is now at PAR with Consumer Staples.
Disclaimer
This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document.
Related Articles
Calpers, the $640B giant, is rotating out of Big Tech. California’s $640bn pension giant is pivoting away from big US tech companies and boosting its exposure to private equity, underscoring concerns that the AI rally that has powered Wall Street to record peaks is running out of steam. “We have traded large exposure to seven companies for several hundred companies,” Anton Orlich, Calpers’ deputy chief investment officer, told the FT. “We are diversifying our equity risk. We are less concentrated.” His remarks came after Calpers, the US’s largest retirement fund for government workers, repositioned its portfolio in the first half of 2026, reducing the combined number of shares it directly held in the Magnificent 7 stocks — Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla — by 26 per cent, according to FT calculations based on the fund’s regulatory filings. Calpers’ shift highlights the growing angst among many investors about the sustainability of a rally in tech stocks fuelled by massive spending on data centres and chips at the heart of the AI boom. Calpers’ pivot comes amid a several-year bull market in US stocks led by technology giants. Meanwhile, private equity funds, once a major driver of institutional returns, have struggled to sell or list companies in their portfolios. Source: FT
The neoclouds are off to a tough start to the week in overnight trading: • $NBIS -4% • $CRWV -4% • $IREN -3% • $CIFR -3% The reason? Yesterday evening, Elon Musk warned that tighter lending could trigger failures and consolidation among more than 200 “neocloud” companies. The vulnerability: heavy borrowing to finance GPUs and data centers, with revenues dependent on continued AI demand. Construction delays, weak capitalization and underused infrastructure could leave some operators unable to cover costs or repay lenders. Pressure could intensify in 2027, particularly if hyperscalers prioritize their own computing needs. According to the account, SpaceX secured $40 billion in GPU-related debt financing, supported by revenues from Starlink and rocket launches. Smaller competitors often lack that financial cushion. The potential outcome: forced asset sales, bankruptcies and investor losses—even if demand for AI keeps growing. Source: The Macro Paper, Shay Boloor
Worst day in 36 years. Source: The Macro Paper