This week's megacap tech earnings suggest that the AI trade remains intact, according to Anshul Sehgal, global co-head of Fixed Income, Currency and Commodities in Goldman Sachs Global Banking & Markets:

Investors wary of owning technology megacaps driving the Nasdaq 100 Index to record highs can still capture the rally using equity derivatives and avoid the fallout from a potential bubble, according to strategists at Bank of America

BOFA: ACTIVE FUNDS STRUGGLE AS MEGACAPS DOMINATE Just 44% of large-cap active funds beat their benchmarks in September, as market leadership narrowed sharply toward megacaps, according to BofA. The cap-weighted S&P 500 outperformed its equal-weight counterpart by nearly 5 percentage points. Growth managers struggled most, with Meta and AMD accounting for 70% of the Russell 1000 Growth’s monthly gain.

META MAY BE THE MOST MISUNDERSTOOD MEGACAP. - Has been growing 33% on advertising. AI is accelerating the ad stack. And the street keeps selling it off. - Amazon, Google, Microsoft sell their compute. Meta uses it all in house. That's why the street gets nervous. - Daily active people ticked down 20M. Russia banned WhatsApp. Iran is at war. Without those Meta was up.

$NBIS has a real shot at becoming a megacap in AI economy and I've been adding during this drawdown because Token Factory could help it earn more from the same GPUs as inference demand grows. And unlike the “guppies” Elon warned about, Nebius has ~$8B in cash and expects over $9B in customer prepayments to help fund that growth.