In this segment of The Milford Report on Herald NOW Business, Frances Sweetman, Milford’s Head of Global Equity Research explains why the tech sector is outstripping the rest of the market by a long way. Part of the reason is what she terms the insatiable demand for AI which is driving revenue growth and accelerating profit margins. Other sectors are performing well too, many benefitting from capital expenditure investment in AI, but tech is the absolute standout as last week’s results from companies like Google, Amazon and Microsoft prove. In the US the reporting season has shown companies across-the-board to be in good shape as tax cuts benefit consumer spending while the market has as yet seen no sign of impact on this spending from the war in Iran or higher pump prices.
