Energy Volatility Limiting Mag 7 AI Growth & Navigating Current Tech Trade

Marcus Bodet says the AI trade remains in its infancy, but higher energy costs and supply-chain bottlenecks are likely to constrain a near-term sector rally. He expects Mag 7 AI-buildout leaders such as Alphabet (GOOGL) and Microsoft (MSFT) to withstand volatility and remain relatively defensive positions.

Analysis

Marcus Bodet says the AI trade remains in its infancy, but higher energy costs and supply-chain bottlenecks are likely to constrain a near-term sector rally. He expects Mag 7 AI-buildout leaders such as Alphabet (GOOGL) and Microsoft (MSFT) to withstand volatility and remain relatively defensive positions.