We're heading into a gauntlet of tech earnings and a Fed decision and the big question is whether this rally is built on solid ground or just holding its breath. Vince Luso is president and CEO and portfolio manager at Cloud Capital. He joins us now.Vince, thanks so much for being here. >> Thanks for having me. >> So, set the stage for us here in a week with so much noise.Do you just kind of sit on your hands and wait it out or is this where the real money is made. Yeah, I wish we could wait it out sometime ...

Core Insights - India's top offshoring firms reported a significant increase in billion-dollar contracts, indicating a competitive landscape in the $283-billion sector as companies vie for market share [1][2] Group 1: Mega Deals and Market Dynamics - In the October-December quarter, Cognizant, Tata Consultancy Services (TCS), and Infosys collectively secured three mega deals, the highest in nine quarters, focusing on AI-driven transformations of clients' IT infrastructure [2][4] - Companies are consolidating their vendor relationships to lower long-term software service costs, leading to a shift towards platform-scale transformation deals rather than traditional labor-heavy outsourcing [3][6] - TCS won a significant contract from a North American financial institution, while Cognizant secured a $1-billion deal with Novartis for managing AI-led services [4][5] Group 2: Financial Performance and Projections - Infosys obtained a 15-year IT modernization contract worth $1.6 billion with the UK's NHS, showcasing the trend of long-term, high-value contracts [5] - HCLTech reported advanced AI revenue of $146 million, reflecting a 19.9% sequential growth, indicating a rising demand for AI services [8] - TCS ended the previous year with $1.8 billion in annualized AI revenue, with Gen AI being its fastest-growing vertical, achieving a 17.3% quarterly growth [9] Group 3: Industry Challenges and Margin Concerns - Analysts express concerns over shrinking margins across traditional IT services, as companies invest heavily in talent and infrastructure for mega contracts, which may inflate initial costs [6][14] - Infosys's margins narrowed by 30 basis points to 20.7% in FY24, while HCLTech's margins remained stable at 18.2%, and TCS reported a 50 basis point improvement to 24.6% [15]

Core Insights - The article highlights the increasing role of artificial intelligence in driving technology deals among Indian software services providers as they transition from AI test deployments to larger projects [1] Group 1: Industry Trends - Indian software services companies are actively competing for technology deals that are increasingly centered around artificial intelligence [1] - The shift from pilot projects to substantial AI implementations indicates a growing confidence in AI technologies among businesses [1] Group 2: Company Perspectives - Wipro's CEO, Srini Pallia, emphasizes the importance of AI in the company's strategy and its potential to unlock new business opportunities [1]

Core Insights - The article provides an overview of the performance of various mutual funds, highlighting the top and bottom performers based on net asset value changes [1] Fund Performance Summary Top Performing Funds - The top 10 mutual funds with the highest net value growth on January 12 include: 1. Western Gain Technology Innovation Mixed A: 2.0717, up 14.17% 2. Western Gain Technology Innovation Mixed C: 2.0544, up 14.16% 3. Dongcai Excellent Growth A: 1.7720, up 13.95% 4. Dongcai Excellent Growth C: 1.7431, up 13.95% 5. Shenwan Lingxin Le Dao Mixed: 1.5309, up 13.91% 6. Yongying Information Industry Smart Selection Mixed A: 1.1660, up 13.65% 7. Yongying Information Industry Smart Selection Mixed C: 1.1593, up 13.63% 8. Furong Information Technology Mixed A: 1.2683, up 13.60% 9. Furong Information Technology Mixed C: 1.2471, up 13.59% 10. Rongtong Mingrui Mixed A: 1.8205, up 12.73% [2] Bottom Performing Funds - The bottom 10 mutual funds with the lowest net value growth on January 12 include: 1. Guolian An Technology Power: 2.5223, down 2.13% 2. Nongyin Medical Healthcare Stock: 1.7954, down 2.02% 3. Nongyin Innovation Medical Mixed: 0.9889, down 2.00% 4. Guolian An Preferred Industry Mixed: 4.0370, down 2.00% 5. Dongfang Alpha Advantage Industry Mixed A: 2.0354, down 1.88% 6. Dongfang Alpha Advantage Industry Mixed C: 1.9799, down 1.88% 7. Shanzheng Asset Management Strategy Selected Mixed C: 1.8316, down 1.88% 8. Shanzheng Asset Management Strategy Selected Mixed A: 1.8293, down 1.87% 9. Guolian An Science and Technology Innovation Mixed: 1.1816, down 1.80% 10. Caitong Asset Management Innovation Medical Mixed C: 1.4992, down 1.74% [3] Market Analysis - The Shanghai Composite Index opened high and continued to rise, closing with a significant increase, while the ChiNext Index rebounded after a dip. The total trading volume reached 3.64 trillion, with a gain-loss ratio of 4144:1182 and a limit-up-limit-down ratio of 201:9 [5] - Leading sectors included software services, internet, media and entertainment, and advertising packaging, all with gains exceeding 6%. Notable concepts included Sora and AI marketing, both with gains over 10% [5]

Company Performance - HCLTech reported a third-quarter revenue of 338.72 billion rupees ($3.8 billion), a 13.3% increase year-over-year, surpassing analysts' expectations of 330.46 billion rupees [1] - The company's profit for the quarter decreased by 11.2% to 40.76 billion rupees, falling short of the average estimate of 46.81 billion rupees [4] - AI revenue reached $146 million, up from $100 million in the previous quarter, marking the first time the company disclosed this breakdown [4] Revenue Growth Forecast - For fiscal year 2026, HCLTech narrowed its revenue growth forecast to 4% to 4.5%, down from a previous range of 3% to 5% [2] Sector Trends - The Indian IT industry, valued at $283 billion, is expected to report muted performance due to weak demand in the U.S. as clients delay non-essential tech spending amid macroeconomic uncertainties [2] - Holiday-period shutdowns typically affect earnings in the December quarter, but HCLTech does not usually experience a year-end slump due to product license renewals during this period [3] Business Segments - Revenue from banking and technology verticals grew by 8.1% and 14.4% respectively, while revenue from life sciences declined by 2% [5] - New deal bookings for the quarter amounted to $3 billion, an increase from $2.57 billion in the previous quarter and $2.09 billion in the same period last year [5] Market Context - HCLTech's shares closed 0.37% higher ahead of the results, indicating positive market sentiment [5] - Tata Consultancy Services, a major competitor, also exceeded revenue estimates, while Infosys, Wipro, and Tech Mahindra are set to report their results later this week [6]

Core Insights - Tata Consultancy Services (TCS) reported third-quarter revenue of 670.87 billion rupees ($7.44 billion), slightly exceeding analyst expectations of 666.76 billion rupees, driven by AI demand [1][2] - The North America market, which constitutes nearly half of TCS's revenue, experienced growth for the first time in two years, indicating a potential recovery in demand [3] Financial Performance - TCS's consolidated revenue increased by 4.9% year-over-year [1] - The company's net profit fell by 14% to 106.57 billion rupees, missing analyst estimates of 130.24 billion rupees, attributed to one-time restructuring costs and legal expenses [5] - TCS's total order book decreased to $9.3 billion from $10.2 billion a year ago, despite announcing eight deals in the quarter, the highest among India's top-five IT firms [6] Market Dynamics - AI services generated $1.8 billion in annualized revenue, accounting for approximately 5.8% of TCS's overall revenue [2] - Five out of eight geographical markets showed growth, with the Middle East Asia growing by 8.3% and Continental Europe by 3.5% [2] - Clients in the IT industry remain cautious about tech spending due to macroeconomic uncertainties, including U.S. tariffs and visa fee challenges [4]

Market Performance - The STAR Market indices opened significantly higher on January 12, with the STAR Composite Index closing at 1855.38 points, up 2.88%, and the STAR 50 Index closing at 1511.84 points, up 2.43% [1] - The total trading volume for the STAR Market reached approximately 381.8 billion yuan, with the STAR 50 Index contributing around 106.6 billion yuan [1] Historical Context - The closing level of the STAR Composite Index on January 12, 2026, surpassed its previous closing level of 1809.82 points on July 13, 2020, marking a historical high [1] Stock Performance - On January 12, 447 stocks on the STAR Market rose, accounting for 74.5% of the total, with 17 stocks, including Puyuan Information and Xinke Mobile, hitting the 20% daily limit up [1] - The average increase for 600 stocks on the STAR Market was 3.02%, with an average turnover rate of 5.14% and a total trading volume of approximately 381.76 billion yuan [1] Sector Analysis - Software service stocks performed well, with 9 stocks reaching the 20% limit up, while biopharmaceutical and chemical raw material stocks showed relative weakness [1] - The stock with the highest trading volume was Cambrian, at 14.379 billion yuan, while ST Pava had the lowest at 915.97 million yuan [2] Turnover Rate - The stock with the highest turnover rate was Bibet, at 27.07%, while Baili Tianheng had the lowest turnover rate at 0.23% [3]

Core Viewpoint - The recent surge in AI applications is significantly driven by the successful IPO of MiniMax, which saw its stock price increase by over 90% on its first trading day, indicating strong market interest in AI technologies [2][3][5]. Group 1: MiniMax's Impact - MiniMax, a leading company in multimodal and consumer-facing applications, went public at a price of 165 HKD per share and reached a market capitalization exceeding 90 billion HKD shortly after listing [3]. - The listing of MiniMax is viewed as a catalyst for the broader AI application sector, with many stocks in the AI space experiencing significant gains, including 60 stocks hitting the daily limit or rising over 10% [2][4]. Group 2: Market Trends and Predictions - Analysts predict that by 2026, AI will penetrate various industry segments, driven by advancements in AI infrastructure tools and data governance [2][5]. - The competitive landscape for large models is expected to shift from exploring new paths to optimizing efficiency on established paths, with major players like OpenAI and Google already generating substantial revenue [5][6]. Group 3: Technological Advancements - MiniMax's M2 model incorporates innovative techniques such as forced interleaved thinking, which enhances efficiency by reducing ineffective token consumption, showcasing its technological edge [6]. - The recent developments in large models, including new releases from various companies, indicate a robust growth trajectory for AI applications, with significant investments and innovations expected in the coming years [7]. Group 4: Industry Fundamentals - The computer sector has shown signs of recovery in revenue and profit since the second half of last year, with institutional holdings at a multi-year low, creating favorable conditions for a rebound [8]. - The latest "14th Five-Year Plan" emphasizes accelerating innovation in AI and related technologies, indicating strong governmental support for the sector [8].

Group 1: Oracle's Investment in TikTok - Oracle is set to be part of a group of investors acquiring the U.S. operations of TikTok for approximately $14 billion, partnering with Silver Lake and MGX [1][2] - Each investor, including Oracle, is expected to hold a 15% stake in TikTok, while ByteDance will retain a 20% minority ownership [2] - Oracle will be responsible for data security, U.S. user data hosting, and algorithm oversight to comply with U.S. national security requirements, pending approval from Chinese regulators [2] Group 2: Financial Performance - Oracle reported fiscal Q2 revenue of $16.1 billion, reflecting a 14% year-over-year increase, although it fell short of the $16.21 billion consensus estimate [5] - The cloud business generated nearly $8 billion in revenue, marking a 34% growth compared to the previous year [5] - Earnings per share (EPS) reached $2.26, a significant 54% increase year-over-year, surpassing the expected $1.64 [6] - Remaining performance obligations surged by 438% to $523 billion, indicating strong demand and revenue visibility for Oracle's services [7]

Core Insights - CI&T and Ford successfully expanded the Wings platform across South America, reducing the delivery timeline by two months through the integration of artificial intelligence [1][4] - The project involved adapting the Wings platform to comply with tax regulations in nine warehouses and upskilling teams on a legacy system with over 550,000 lines of code [2] - CI&T structured three dedicated teams for development and continuous support, ensuring operational stability during the implementation of new functionalities [2] Technology and Innovation - The collaboration utilized CI&T FLOW, an AI management system, alongside Ford's proprietary LLM, to enhance insights and adapt the platform with agility and accuracy [4] - Over 4,800 minutes of meetings were analyzed, and 50,000 lines of transcripts were processed, facilitating faster knowledge transfer and clearer decision-making [4] Business Impact - CI&T's approach combined business immersion with advanced technology and AI, significantly transforming Ford's logistics operations and improving efficiency across the region [5] - The company has a 30-year track record of assisting clients in navigating change, with expertise in AI, strategy, customer experience, software development, and more [6]