Why I Am Sick Of Rotation Talk: It Misses The Destination

Luca Socci
6.68K Followers

Summary

  • Hyperscalers like Amazon, Microsoft, Google, and Meta are the true long-term winners, acting as 'AI utilities' with expanding moats.
  • The current market rotation from tech to industrials and energy is often misunderstood and risks missing the compounding power of hyperscalers.
  • Capex by hyperscalers should be viewed as a moat-building investment, not merely a cost, as their infrastructure and proprietary data are irreplicable assets.
  • Rotating out of hyperscalers to chase cyclical sectors may incur significant opportunity cost; these tech giants are the digital economy's new utilities.
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Introduction

After reading this title, in case you have been following my recent coverage on how this market is developing, you might think I am going astray.

It is true, I too have been saying that we are in a

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The chart has 1 X axis displaying Time. Data ranges from 2026-02-21 03:10:00 to 2026-02-26 23:10:00.
The chart has 1 Y axis displaying values. Data ranges from 6826.3 to 6969.6.
End of interactive chart.
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The chart has 1 X axis displaying Time. Data ranges from 2026-02-21 03:10:00 to 2026-02-26 23:10:00.
The chart has 1 Y axis displaying values. Data ranges from -2.22 to 1.65.
End of interactive chart.
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