RBC’s Calvasina Wraps ‘AI Froth’ Into Earnings Risks
TL;DR
Lori Calvasina, head of US equity strategy at RBC Capital Markets, discusses the earnings risks the AI buildout creates for stocks. She looks at what her firm sees in technology capital spending beyond the ten largest companies by market cap in the S&P 500. In the interview, she counts the froth around AI among the risks to corporate earnings. The segment aired on Bloomberg.
Nauti's Take
Analysts like Calvasina looking at spending beyond the tech giants gives investors an advantage, because that is where it shows whether AI delivers broad productivity gains. The risk sits in large capex budgets that may take years to show up in profits, or never do.
Anyone holding AI stocks should watch for concrete revenue from AI products and treat hype-driven valuations with caution.
Sources