00:00Is the door still open for European companies that have exposure to data centers and AI infrastructure?
00:06Has that story got further to run, do you think?
00:08We do think it's got further to run.
00:10I mean, yes, I can see why the market's nervous, because these have run up quite a lot.
00:15Not so much in Europe, but in the rest of the world in particular.
00:19You've had some very strong performance, but really based on earnings coming through.
00:24And we still feel that the hyperscalers will be upping their capex again in 2027.
00:29And we're looking for reasonably good earnings.
00:31And that's absolutely coming through in the print so far.
00:33So good earnings driving not necessarily higher valuations, but higher performance by these stocks.
00:40What is giving you the conviction that hyperscalers continue to spend and increase capex in 2027?
00:46Yeah, I mean, in many cases, they've already said that this is what they plan to do.
00:50So I think it's following that.
00:52It's following those signals.
00:54And you are starting to see some returns from the AI spend as well.
00:57So a combination of better returns from this and plans already in place means that you start to get some
01:03pick-up and spending.
01:04Do you think executives in the earnings season will be under more pressure to give more detail on the token
01:11cost, the spend on tokens, and the ROI?
01:15Is that something that analysts are going to be looking and pushing for more?
01:18I think people will push for it.
01:20I don't think we will necessarily get all those details, unfortunately.
01:22I mean, I think it will take time.
01:25I mean, we think ultimately this will be a big productivity gain for GDP in aggregate.
01:31But we won't even see that really in terms of the productivity numbers until the earliest 27 in the case
01:37of the U.S.,
01:37probably even a little bit later than that for Europe.
01:40So it takes a while for these things to come through.
01:42But I'm sure there will be pressure to report gains on the basis of it.
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