NETHERLANDS INTERNATIONAL GROUP: S&T INVESTORS REVISIT AI INVESTMENT

On 7 July, Jan Frederik Slijkerman of the Netherlands International Group wrote in a report that technology investors were reassessing their investments in artificial intelligence, although the technology was a positive long-term driver. He stated that the revenues and interest, taxes, depreciation and pre-amortization earnings of the company would rise, but investors remained nervous. As infrastructure expenditures lead to higher depreciation costs and lower stock buy-backs, investors may experience slower growth per share and a decline in the valuation multiplier. As the positive impact on income growth may take time to become apparent, free cash flows are expected to be lower than in previous years. This reduces the space for large-scale shareholder returns in the form of stock buy-backs。