CNBC Television
Mahn: Investors are focused on big tech earnings and AI infrastructure spend
11/6/2025, 12:13:41 PM
Economic Summary
- Investors are focused more on big-tech earnings and AI infrastructure spending than on Fed policy for December, driving short-term market moves.
- A Supreme Court case over tariffs introduces additional policy uncertainty that could affect trade-sensitive companies and supply chains.
- JP Morgan notes buy-the-dip activity is concentrated in mega-cap tech (MAG 7), indicating a narrow leadership that may conceal breadth risks.
- The current bull market has reached its three-year anniversary; historical averages imply the rally could continue for years, but leadership may broaden.
- Amphenol (APH) reported a strong Q3 with sales up 53% YoY and is acquiring CommScope's cabling and connectivity business for about $10.5 billion.
Bullish
- Buy-the-dip flows continue to draw money off the sidelines.
- AI infrastructure spending supports large-cap tech and related suppliers like APH.
- Historical bull-market patterns suggest potential for several more years of gains.
Bearish
- Supreme Court tariff ruling creates incremental policy uncertainty.
- Market leadership may rotate; past three-year leaders might not lead forward.
- High valuations and large acquisitions increase downside risk (e.g., APH forward P ~34).
Bullish tickers
APHMETA
Bearish tickers
COMMMETAAPH
APH
Bullish
Global supplier of connectors and sensors; beat Q3 estimates with sales up 53% YoY, acquired CommScope cabling business, strong YTD performance.
Bearish
Forward P ~34 suggests elevated valuation; $10.5B acquisition of CommScope unit adds integration and financing risk.
COMM
Bullish
Sale could allow focus on remaining operations or balance-sheet repair, though transcript gives limited positive detail.
Bearish
Divested its cabling and connectivity business to Amphenol, signaling potential restructuring and loss of a core unit.
META
Bullish
Called out as one of the biggest beneficiaries of buy-the-dip flows and AI infrastructure spending.
Bearish
Retail investors are reportedly 'booing' tech, implying skepticism despite AI tailwinds.
JPM
Bullish
JP Morgan's note highlights where short-term buying is focused, signaling where demand is most persistent.
Bearish
JP Morgan's observation of concentrated buy-the-dip flows implies market concentration and breadth risk.
People mentioned
Frank