Big Growth. 'Undemanding' Prices.

Morgan Stanley maintained a bullish stance on hyperscaler tech stocks (Alphabet, Microsoft, Amazon, Meta), saying strong forward earnings and accelerating cloud revenue make them attractive despite heavy AI-related infrastructure spending. Analysts argue investors will focus on top-line momentum rather than near-term capital expenditure or free-cash-flow pressure, keeping valuations “undemanding.” The Magnificent Seven have rallied sharply (25%+ since late March), lifting tech-heavy indices and ETFs; Morgan Stanley’s view supports further upside for the US Tech 100 and related benchmarks. Risks include a 60% jump in hyperscalers’ infrastructure spending (to >$700bn) that could strain free cash flow, but limited leverage and robust cloud demand reduce rate-sensitivity, making near-term investor appetite likely to persist.