MOO: CLOUD ORDER SURGED BY MORE THAN 150%, AI INVESTMENTS STARTED TO CASH, AND THE SCIENCE AND TECHNOLOGY UNIT VALUATION FELL INVESTMENT OPPORTUNITIES

On 5 August, a Morgan Chase analysis indicated that the current cloud-end backlog of orders for the super-large cloud service provider, Hyperscaler, had increased by more than 150 per cent over the same period, to a total of approximately $1.7 trillion, a significantly higher increase than the growth in capital expenditure of about 80 per cent over the same period. Analyst Mark Schilsky states that whether there is a backlog in cloud operations or a new annual recurrent income (ARR), growth continues to lead the way in capital spending, which means that future revenues are expected to be sufficient to sustain current AI investments of hundreds of billions of dollars. The Bank believes that if the market focus is gradually shifted from “AI's excessive capital expenditure” to “AI's return on investment starts to materialize”, the next wave of technological growth will be more likely to be dominated by large technology platforms than by the AI chip unit alone. From a technical perspective, Rundhill Magnificent Seven ETF, which tracks the seven giants of technology in the United States, has rebounded by almost 10 per cent since its recent low point, repositioning itself on a 200-day moving average line and approaching a long-term upward trend since last April. The 200-day average is now flat, indicating that the market has been organized over a long period of time. From historical experience, the longer it takes, the more rapid the follow-up is, the more likely it is that the future performance of the Science and Technology Unit will continue to be of interest to investors。