Jed Ellerbroek discusses how long-term investors can look past rising single-stock volatility and focus on the broader opportunities created by the AI infrastructure buildout. He highlights beneficiaries ranging from Nvidia (NVDA) and United Rentals (URI) to alternative asset managers Apollo Global Management (APO), Blackstone (BX) and Carlyle Group (CG), arguing that strong returns on AI investments continue to support robust spending trends. ======== Schwab Network ======== Empowering every investor and trader, every market day. Subscribe to the Market Minute newsletter - https://schwabnetwork.com/subscribe Download the iOS app - https://apps.apple.com/us/app/schwab-network/id1460719185 Download the Amazon Fire Tv App - https://www.amazon.com/TD-Ameritrade-Network/dp/B07KRD76C7 Watch on Sling - https://watch.sling.com/1/asset/191928615bd8d47686f94682aefaa007/watch Watch on Vizio - https://www.vizio.com/en/watchfreeplus-explore Watch on DistroTV - https://www.distro.tv/live/schwab-network/ Follow us on X – https://twitter.com/schwabnetwork Follow us on Facebook – https://www.facebook.com/schwabnetwork Follow us on LinkedIn - https://www.linkedin.com/company/schwab-network/ About Schwab Network - https://schwabnetwork.com/about

Data Center Demand Fuels Growth for URI, APO, BX and CG

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What have you made of these earnings? And, you know, I point to the head scratcher that is Datadog doing a big downward dog today. And the reaction we've seen, obviously, in names like Western Digital. I mean, I know we like to find a reason for it, but these were good numbers. Do these reactions tell us more something about the positioning here in this market, do you think?

Yeah, that's a great question. I think it does say more about the inherent volatility, the single stock volatility that is present in markets today. We're coming off an all-time momentum rally with semiconductor and data center CapEx beneficiaries leading the market in the second quarter, followed by a really sharp three-week reversal in July.

And then this kind of like earnings-related bounce here in the last week and a half, led mostly by the big tech hyperscaler. So really dramatic volatility in your prior segment. You talked about, yes, Datadog down double digits today, but up, you know, 50 or 60 percent year-to-date. Same thing with AMD, I think, was mentioned. So yeah, it's hard to take away too much from a one-day earnings reaction these days. Better to zoom out a little bit if you can.

And, Jed, you said something really interesting in your notes here because we keep having all these conversations about if we've reached peak spending, just in seeing how some companies were met with some punishment for having their number be what the street felt was too high or perhaps not returning enough on that number. You are saying that 2027 CapEx could grow potentially another 50 percent from these record levels that we're already at. I mean, Sam and I are regularly looking for typos sometimes when the numbers come across.

Data Center Demand Fuels Growth for URI, APO, BX and CG

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Data Center Demand Fuels Growth for URI, APO, BX and CG

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.