Moric Kocsa Pillmann @MoricPortfolio: "👀Excellent week - we closed..."

Hungary

👀Excellent week - we closed +6.4%, clearly outperforming both benchmarks. The $SPX500 was up ~3.4%, while the $NSDQ100 rose ~5.1%. Markets broke out of their summer trading range to fresh record highs. ⚠️𝐒𝐨𝐦𝐞 𝐧𝐨𝐭𝐚𝐛𝐥𝐞 𝐡𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐰𝐞𝐞𝐤: 🚀𝐁𝐢𝐠 𝐭𝐞𝐜𝐡 𝐞𝐚𝐫𝐧𝐢𝐧𝐠𝐬 𝐩𝐮𝐬𝐡𝐞𝐝 𝐛𝐚𝐜𝐤 𝐨𝐧 𝐀𝐈 𝐜𝐚𝐩𝐞𝐱 𝐟𝐞𝐚𝐫𝐬 --> $MSFT (Microsoft) added roughly $450B in market value after its report - the largest single-day market-cap gain ever recorded by a public company - on accelerating cloud growth and clearer visibility into AI returns --> $META (Meta Platforms Inc) fell despite strong growth, as investors questioned whether its accelerating spend will translate into returns - the market is now rewarding companies with a clear monetization path over raw capex scale --> S&P 500 earnings growth is tracking near 48% this quarter (~29% excluding one-off investment gains at Alphabet/Amazon) - a second straight quarter above 20%, with strength broadening beyond mega-cap tech into 6 of 11 sectors. In general, it is good news when not only a few companies pull the weight, as it steers into broader economic upward momentum 🏗️𝐓𝐡𝐞 𝐀𝐈 𝐛𝐮𝐢𝐥𝐝-𝐨𝐮𝐭 𝐢𝐬 𝐜𝐫𝐞𝐚𝐭𝐢𝐧𝐠 𝐣𝐨𝐛𝐬 - 𝐣𝐮𝐬𝐭 𝐧𝐨𝐭 𝐰𝐡𝐞𝐫𝐞 𝐲𝐨𝐮'𝐝 𝐞𝐱𝐩𝐞𝐜𝐭 --> July payrolls fell 23,000 overall, but nonresidential/infrastructure construction added 22,000 jobs - almost entirely data centers, power infrastructure, and the trades needed to build them --> Per RSM's chief economist, AI infrastructure investment is running at $1.6T over the past two years, with $4.5-5T expected over the next five - a scale increasingly showing up in hard-hat jobs, not just tech hiring --> Per Apollo's chief economist, the profitability gradient tells a similar story: energy/grid companies keep ~$0.41 of every revenue dollar as profit, chips/equipment ~$0.34, cloud/compute ~$0.24 - while AI models and applications currently lose ~$0.59 per dollar of revenue. The physical infrastructure layer is already profitable; the software layer is still funding the buildout and yet to catch up - software is adapting new pricing techniques to turn this gap into profits down the road: from per-seat subscriptions to outcome/usage-based pricing capturing a share of the productivity gains AI creates, rather than being disintermediated by it 🧠𝐓𝐡𝐞 𝐤𝐞𝐲 𝐩𝐨𝐢𝐧𝐭: This week confirmed the AI story is maturing, not breaking. Markets are rewarding companies that show a credible path from spending to returns - and that discipline is now starting to show up in construction jobs, profit margins across the AI value chain, and how software companies price their products. 💭 With valuations still below their 5-year average relative to the broader market, there's room for the AI theme to keep expanding. Let me know your thoughts or if you have any questions in the comments! Best, Moric $QQQ (Invesco QQQ) $SPY (State Street SPDR S&P 500 ETF) $VOO (Vanguard S&P 500 ETF) $XLK (State Street Technology Select Sector SPDR ETF) $SOXX (iShares Semiconductor ETF ) $Semiconductors

Not investment advice. The author may have financial interests in the mentioned instruments.