capex

Big tech’s great AI power grab

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Big tech’s great AI power grab

The comparison with the famously capex-happy energy industry is apt not just because of the sums involved. AI needs vast amounts of processing power. And that processing power needs vast amounts of electricity. On May 2nd Bob Blue, chief executive of Dominion Energy, one of America’s biggest utilities, said that data-centre developers now regularly ask … Read more

Why are infra and capital-goods stocks still in demand despite premium valuations?

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Why are infra and capital-goods stocks still in demand despite premium valuations?

A rally fuelled by robust fundamentals has led to a re-rating in the infrastructure and capital-goods sectors, pushing several stocks into what seems like overvalued territory. Several infrastructure and capital-goods stocks are trading above their 10-year average price-to-earnings (PE) ratio. The PE ratio compares a company’s stock price to its earnings per share, so a … Read more