We're upgrading shares of a big beneficiary of AI spending going through the roof

Market Overview - Stocks rebounded on Friday, led by technology, despite a poor week overall for the S&P 500 and Nasdaq [1] - The best performing sector was consumer staples, which rose 13% in 2026, marking their best year in decades [1] Company Earnings and Capital Expenditure - Meta Platforms invested $22.14 billion in Q4 and $72.22 billion for the full year 2025, with anticipated spending of $115 billion to $135 billion in 2026 [1] - Microsoft spent $37.5 billion on capital expenditures, with analysts projecting $148 billion for the fiscal year [1] - Alphabet reported $27.5 billion in Q4 capex and $91.4 billion for the year, expected to increase to $175 billion to $185 billion in 2026 [1] - Amazon's capex was $39.5 billion in Q4 and $128 billion for 2025, planning to invest $200 billion in 2026 [1] Investment Opportunities - Broadcom shares are down about 4% year-to-date and 20% from their all-time high, prompting an upgrade to a buy-equivalent rating due to increased capex plans from major clients like Alphabet and Meta [1] - The anticipated increase in spending on AI infrastructure is expected to benefit various companies in the portfolio, including Nvidia, Eaton, GE Vernova, Dover, Corning, Cisco Systems, and Qnity Electronics [1] Upcoming Economic Data - The pace of earnings season will slow next week, with 15% of S&P 500 companies still scheduled to report, including DuPont and Cisco [1] - Key economic data to be released includes December retail sales, January consumer price index, and the January employment report, which is expected to show nonfarm job gains of about 70,000 and an unchanged unemployment rate of 4.4% [1]