AI capex intact despite oil risk; S&P 500 seen at 7,700: Citi's Drew Pettit
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Citi's Drew Pettit states that major tech companies' AI spending plans remain intact despite rising oil prices and geopolitical risks. Citi maintains a year-end target of 7,700 for the S&P 500, with growth stocks expected to lead.
Major technology companies' artificial intelligence (AI) spending plans are unaffected by rising oil prices and geopolitical risks. Near-term investments are driven by compute and memory costs, not energy constraints. Chip pricing has significantly influenced capital expenditure efficiency. Citi maintains a year-end target of 7,700 for the S&P 500, implying further upside. Equities are rebounding as geopolitical stress eases, driven by repositioning rather than fundamentals. Growth stocks are expected to lead due to structural drivers.
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