Bifurcation will Continue, AMAT, APP/U, NET, DDOG, Space Launch Market, ALAB

In our last weekly report, we discussed the structural positioning adjustment among big US tech funds/long-only, from their asset-light holdings in software and internet to semi and hardware that used to be perceived as cyclical and asset-heavy. We encourage you to have a read if you haven’t yet.

Then, over the past week, the bifurcation in performance has become even more extreme, as the market is selling every asset-light business that appears threatened by AI. Jeffrey Favuzza at Jefferies has summed it up well with the table below -