Tech will continue to exceed expectations and the stocks will do well: Silvant's Mmichael Sansoterra

Core Viewpoint - The performance of large-cap tech stocks, particularly the "Mag Seven," has been relatively flat, raising concerns about their competitiveness and growth potential in the face of rising small-cap and mid-cap stocks [1][2]. Company-Specific Insights - Microsoft is facing supply issues that are not meeting demand for compute power, which may impact its performance despite strong fundamentals [3]. - Alphabet's growth, particularly through its AI initiatives like Gemini, is expected to continue accelerating, with projections of 38-39% growth in the upcoming quarter [4]. - Meta is viewed as a relatively undervalued stock within the group, trading at 22 times forward earnings, but concerns exist regarding its high capital expenditures and the need for clear guidance on new revenue streams [5][6]. Competitive Landscape - The rise of AI has intensified competition among major tech companies, with each trying to capture market share in areas previously considered secure [8][10]. - There are differing perspectives on whether AI will benefit all incumbents or if it will lead to a zero-sum game where gains come at the expense of others [8][11]. - The current environment is characterized as a "land grab," where companies are encouraged to spend aggressively to enhance their capabilities and market position [12]. Market Dynamics - The competition among the "Mag Seven" is expected to increase, with potential winners and losers emerging as they navigate the evolving landscape [12][13]. - The overall sentiment suggests that while some companies may excel, others may struggle to maintain their positions in the market [10][11].